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Of course if we don’t increase the cost of the basic Grade A model and have a Grade B version of the same part for extra reach with the Grade B version being loaded with any additional costs of handling two product codes and any additional testing, then we shouldn’t lose any customers.
PMTS Standards & Technology
Tel 303 530 3189 x7533.
From: Dove, Daniel
Let me re-state one word of that message.
Yes that helped a lot. I hope the others on the list are not irritated by my request for repetition of the data.
Given the data, it truly is a challenging issue. I see a 20% premium for a 17% increase in coverage.
This means the confidence in the numbers is exceptionally important and assuming they are accurate, a judgement call by the committee on whether or not a 17% increase in port coverage justifies the 20% increase in cost.
This is important because if you increase the *COST* of a solution by 20%, you may decrease the number of customers who are willing to buy it by more than 20%. Thus, in the overall mix, it might turn out to satisfy less customers overall.
Its a pretty challenging judgement call IMHO.
Thanks for providing the data.