Microsoft being Microsoft

[cavalierlwt]

http://news.zdnet.co.uk/0,39020330,39261437,00.htm

Don't sell PCs without an OS, or M$ reps will pay you visit, help show you what a 'mistake' it is.

[Namloot]

Wow, what a pair they have.

[JimmyTango]

?

Why would anyone think this is 'Microsoft being Microsoft' or 'what a pair they have?'

It is simple. That 5% share of the market is lost sales for them AND the dealer.

If I am a computer store, I would to push them buying as much as possible. This increases profits. This is GOOD.

[Chacal]

Not for the customer, it isn't.

[JimmyTango]

Originally posted by Chacal
Not for the customer, it isn't.

So?

Microsoft and the dealer are not the customer. They are the ones making money. bundle them together = more money = more sense for them.

It's like buying a car, and having to get the complete cold weather package when the only item you want out of it is the heated wipers. Of course, you can't get it by itself, only bundled.

All they will do is push getting an OS more, they will not force it on you. They will push it by knocking off some for the OS.

Say the price is $100 and the dealer is making $30 on it.

Buyer doesn't want it at $100, but if you bundle it with that barebones PC for $85, the customer takes it. You just made an extra $15 for doing nothing but adding it to the order. It's an add on sale, which usually is very profitable.

Pepsi is on sale at your local store for $0.89 and it is typically $1.29. You see it in the Sunday flyer and think it is a great buy. The store is making money off of it, but nowhere near as much(lets say down to 10 cents). Why would you bother doing this? Add on sales. That chips and dip they also buy is where you make your money.

Works both ways. Lower the add on price for additional sales or lowering the hook item(like Pepsi) to make more on the regular item not on sale(chips and dip).

This is basic stuff.

[Chacal]

I'm glad you agree.

Another example which irritates me is exclusive deals. You get to a restaurant or a bar and ask for a Guinness. They don't have it because they have an exclusive deal with a competing brewer. In return for exclusivity, their cost is 50% (you, however, pay the same price). Good for the brewer, good for the owner, customer gets screwed.

[cartboy519]

Yeah Chacal, I hear ya on getting screwed on buying beer. LOL

Also I think it is good to have an OS on the puters, but Microsoft in a way is being Microsoft because, they are always finding new ways to make more money.

[Ldsmith104]

mmm, maybe the should install Linux, if that's not what you want you can format and start over. It doesn't cost you anything extra for the preinstalled Linux. Now they don't sell naked PCs M$ should be happy, after all, they just want to stop the sell of "naked" PCs

[Darknut]

LoL they actually use the guise of "piracy" to back up why they are pressuring companies to sell PCs with their OS. If I was that company I'd just sell the PCs with a Linux pre-installed and send a letter to Microsoft thanking them for their concern.

However as for the market goes, there is a market for computers without an OS. As mentioned in the article some people already have an OS or simply want to use something other than Windows.

Personally I think that it is stupid for my organization to buy a PC that has Windows XP only to format it and load it with our volume license, slip-streamed version of Windows XP.

[cavalierlwt]

Well, it crosses the line if people are afraid that simply buying a bare bones systems means Microsoft is going to investigate them.

>>from the article

The FSF Europe is alarmed by the prospect that customers who request a base systems would risk a visit from Microsoft's investigators.

"Microsoft is recruiting two 'feet on the street' personnel whose role will be to provide proactive assistance during CUSTOMER VISITS, and help you get the value proposition for pre-installed software and related services. Give us a call and let's get those feet walking," Alexander wrote.

When contacted by ZDNet UK, Alexander denied that operatives would be dispatched into the premises of customers who attempted to buy a PC without Windows.<<

Sounds like the message M$ is trying to deliver is that 'Big Brother is watching'

[JimmyTango]

Good job not quoting the entire article, and makign it seem different.

Microsoft said the copy was worded incorrectly. The rest of the entire article is how they are working with the dealer to improve sales and profit for both by trying to grab that 5% market.

Customer visits is obviously supposed to mean when the customer is in the dealers store(it can be taken either way).

Come on, 2 guys are going to be able to go to every customers house that didn't get an OS? Please. Obviously a bad wording in that copy, and now they know it and said they would change it.

I am not a MS fan. They clearly broke basic anti-trust laws. Sadly, the curtrent administration let them walk, when the previosu administration had the correct settlement and breaking of the company. MS does some shady business practices, but this one is much ado about nothing.