Tuesday, April 19, 2005

Jack of all trades, master of none (Thanks Roman)

So it seems as if some of the other companies that are trying to compete with Systinet, unsuccessfully, are at it again, offering "free" software to the customers who rush to them to take advantage of their offer. They use the excuse that it will "expedite" adoption of the standards.

I think of it like this -- your local mom & pop Chevrolet dealer sends you a letter in the mail saying "We are going to try to compete with Mercedes. Because of that fact, we are going to offer free Chevrolet Malibu's for a limited time to those lucky ones who rush here to get them. We believe that this will quicken the adoption of the Malibu versus the Mercedes."

Fine print: This offer requires you to have your Malibu serviced with us (at a minimum of 10 times per year) - and we may even throw in some proprietary parts to make sure that you keep coming back to us. There is also no guarantee that your Malibu will ever run. Finally, when we go out of business, no one else will be able to service your Malibu.

Back to a post from a couple of weeks ago -- predatory pricing is a sign of desperation. I believe that our customers and prospective customers realize this and continue to see the value in our Mercedes.

As for my week - my long awaited vacation is... - nice, but tiring. We're settling into the new house, painting, plastering and thensome!

Have a great week.


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