Well, this is the typical old question of "economies of scale." The reason
that Microsoft can sell it for $109 is the they'll sell millions!
If only 5,000 people buy it at $5,000, that's 25 million.
If 1 million people buy it at $109, that's 109 million.
GDT's better off in the second case. (assuming that duplication costs are
relatively low)
Yes, we should see prices drop! This is also why MapInfo's MapX was
introduced. Now we'll begin to see data prices drop, too.
dan
-----Original Message-----
From: Ken Fioretti <[EMAIL PROTECTED]>
To: 'MAPINFO-L' <[EMAIL PROTECTED]>
Date: Monday, December 28, 1998 9:56 AM
Subject: MI Data Pricing and MS MapPoint
>Two points that are currently being discussed are the price of GIS data,
>and Microsoft's entrance into GIS with MapPoint2000.
>
>The prevailing opinion regarding GIS data is that it should be priced at
>whatever the market will bear, which at this time seems relatively high.
>With Microsoft's bundling of MapPoint, Claritas Demographic data, and
>GDT DynaMap 2000 for a mere $109, it seems that the cost of that data
>has been considerably lower than the price. How else could these two
>data providers afford to supply it to Microsoft for a fraction of what
>individual GIS professionals have been paying.
>
>If MapPoint is successful and GIS does get a strong foothold into
>everyday business software, will data providers still be able to charge
>thousands of dollars for data, or will they be forced to sell at a much
>lower price? It would be hard to image a business user who spends $109
>for MapPoint spending $5000 for data.
>
>--------------------------------------------------------------------
>Ken Fioretti - [mailto:[EMAIL PROTECTED]]
>CBA Industries, Inc - (201) 587-1717
>--------------------------------------------------------------------
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