*BSD News Article 51452


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From: "Jordan K. Hubbard" <jkh@FreeBSD.org>
Newsgroups: comp.unix.bsd.freebsd.misc
Subject: Re: disgruntled.. not a flame.. to cdrom.com
Date: 15 Sep 1995 10:44:23 GMT
Organization: Walnut Creek CDROM
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Message-ID: <43ble7$nco@reason.cdrom.com>
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To: ccjason@quadrophenia.ucdavis.edu,tech@cdrom.com
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ccjason@quadrophenia.ucdavis.edu (Jason Gabler) wrote:
>I wrote the following PRIVATE letter to info@cdrom.com, now over a 
>month ago.  I was agitated enough originally, but now its a month and still 

I am not on the info@cdrom.com mailing list as it goes to an admin type who
generally forwards all the weird "help I want to call you on the phone but
I have no fingers - what do I do?" sorts of questions.  Clearly, this one
went astray as I would most certainly have replied to it, as would have
several others here.  Your lack of a response was due to error, not
indifference.  Now that we have that out of the way, on to your questions:

>        Yesterday (Sat Aug 12) just before closing time I walked into the
>front office there at 4041 Pike Ln. and purchased the FreeBSD 2.0.5 RELEASE
>CDROM.  I was quite surprised at the the $38 some-odd dollar price.  But I
>surmised two things:  1) well, its fairly new maybe its still expensive and
>I want it to day , especially since 2) I drove a little road trip from S.F.
>to Concord to purchase this little piece of platic and aluminum, I was not
>going to go home empty handed. 

And that's why we have that store.  A lot of people want their
gratification NOW and are unwilling to wait for it.  To tell the truth, in
fact, that store is actually more of a pain than it's worth since we're not
actually set up to do much beyond mail order sales but, like I said, it's a
convenience to the customers so we keep it.

>        So today a friend called me who went to a small (!) computer show
>in the Sacto area.  She bought the same CDROM for $12 (yep! TWELVE!).  Boy,
>do I feel duped.  I've had this mystical-aura feeling about you guys at WC
>CDROM, mostly because of the most superb job you all do with FreeBSD.  But
>usually, when you take the time to buy from the source, you pay less than
>people who go thru the source, the wholeseller , and then the retailer.  I

Nope!

I mean, I'm really sorry to burst your bubble and all but that's just NOT
how it works in the CD business and you can ask anyone in it, from WC to
Infomagic, just how it really does work.  Here are some facts for you to
chew on:

For a given title, you sell anywhere from 20-40% directly to customers and
the rest through distributor channels.  These distributor channels are your
lifeblood (no surprise there, considering the percentages involved) and
they are VERY fussy about what they'll pay!  They order those kinds of
volumes because they can sell them, and they can sell them because:  A)
They sell them cheap.  B) They can still make respectable volume profit
margins and are therefore _highly motivated_ to sell as many as they can.
That's all distributors do, after all, they don't make things or do any
sort of R&D investment, they just sell stuff.  Therefore, it hardly
requires an MBA from Yale to very quickly figure two things out:

	A) If you want distributors to sell your stuff, you need to give
	   them good deals.

	B) If you undercut your own distributors and take their customers
	   away, they'll drop you like a hot potato.

It is not hard for someone to sell you a CD for $12.  We give very good
deals to our distributors and if they order enough CDs from us then they
can still make a profit at even that low price.  We can't sell it to you at
anything near that price or we'd soon have no distributors at all, and
that'd be suicide.

However, it's also false to say that you don't get _anything_ extra for
your $39.95.  For one thing, WC is pretty darn good about fielding tech
support calls, even forwarding them on to ME when they can't answer
something directly - they don't just hang up with a shrug!  If you can't
figure out how to install FreeBSD on your machine and you call your
distributor, he'll probably just tell you to call WC - he certainly won't
be able to answer your question himself!  We provide literally thousands of
hours of tech support every month and I can assure you that many people
have received well over and above their forty buck's worth!  So there's the
tech support and we're not exactly making money on it, if you get my drift.

Then there's the unconditional return policy.  Believe me, we are VERY good
about this one!  If you buy a CD for $12 at a swap-meet and then later go
back for a refund because it has some minor defect like a scratch on the
jewel case, the dealer will probably *laugh* at you!  Trust me!  You won't
get your $12 back, that's for sure.  In our case, we'll refund your money
without question.  Don't like the color of the case?  Wrong shade of white?
We don't care.  Unconditional means unconditional.  You don't even have to
send the product back!  In fact, if one version doesn't work for you
because of a clear shortcoming in the software (e.g. it doesn't seem to run
on your machine) we'll send you the next version for free.  No problem.
You keep both CDs.

Or how about the 24 hour order line, 7 days a week 365 days of the year?
Those people who work at night don't work for free, and it's unfair to
compare us with a dealer who's only got to staff his shop from 9am - 5pm,
Mon-Fri.  For that matter, how many dealers will respond to emailed tech
support questions?  Or put patches up for ftp (to say nothing of almost
their entire product line)?  We may be forced to charge a certain margin
over our distributors with our retail sales, but I'd certainly say that we
go the extra mile and then some to make sure that something extra is
provided in return.  Finally, I can't say that anyone here has ever made
any attempt to "dupe" anyone over this issue.  We sell subscriptions for
$24.95 for those who want a better deal and want FreeBSD updates regularly,
and if you ask us how to get an even better deal than that then we'll more
than openly refer you to one of our distributors.  No attempts to hide
anything here, it's just the way the business works.

I hope this at least goes some way towards answering the points you raise.
If you remain disgrunted, it goes without saying that we'll be more than
happy to refund your money.  We do not want unhappy customers!

					Jordan Hubbard
					Walnut Creek CDROM