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RE: Pricing Wars

From: Miller, Jay <JayMiller_at_TDWaterhouse.com>
Date: Tue, 13 Jun 2000 16:56:09 -0400
Message-Id: <10527.109100@fatcity.com>


There's a story in wine circles about the days when Gallo was first getting started. The sales reps, when visiting retail shops, would pour out two samples of the same wine and say one was $2/bottle and the other was $3/bottle. After tasting both something like 80% of the retailers would buy the $3 wine (my numbers aren't exact,but you get the idea).

-----Original Message-----
From: Jonathan Gennick [mailto:jonathan_at_gennick.com] Sent: Tuesday, June 13, 2000 1:32 PM
To: Multiple recipients of list ORACLE-L Subject: Re: Pricing Wars

On Tue, 13 Jun 2000 06:42:55 -0800, you wrote:

>"Microsoft is raising prices in the enterprise market," says
>Terilyn Palanca, a director at Giga Information Group. That's OK,
>since moving the price of its database closer to offerings from
>Oracle and IBM will help ease customers' perception that SQL
>Server is a departmental product,

So Microsoft sees raising prices as a way to gain credibility? Wow. There's probably some logic to it though. I seem to recall reading some marketing studies (done with consumers) that speak to this issue.

Jonathan



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Received on Tue Jun 13 2000 - 15:56:09 CDT

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