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Pricing RRS feed

  • Question

  • Why does MS not reward current users with a renewal price comparable to what is offered by retail outlets for boxed products. I refuse to believe the stores are selling at a loss.

    Tuesday, August 19, 2008 2:40 PM

Answers

  • I can only offer my opinion or speculation on the reason. Microsoft doesn't discount any of their software sold online so as not to compete with retailers. Additionally, Microsoft may well extend deals to volume retailers that would allow them to sell quantity with no loss, but a minimal profit per copy sold.

    -steve

     

    Tuesday, August 19, 2008 4:36 PM
    Moderator

All replies

  • I can only offer my opinion or speculation on the reason. Microsoft doesn't discount any of their software sold online so as not to compete with retailers. Additionally, Microsoft may well extend deals to volume retailers that would allow them to sell quantity with no loss, but a minimal profit per copy sold.

    -steve

     

    Tuesday, August 19, 2008 4:36 PM
    Moderator
  • In addition to what Steve already stated, the retailers may even sell at near cost in order to get you into their store, where many will often use the opportunity to purchase something else that's not at such a deep discount. This is especially true now that saving trips to reduce paying for gas is so important to many.

     

    I've also speculated about the non-competition with partners (retailers or 'channel') in the past. It appears that though they have begun to roll out an online store internationally, the prices are still closer to the full retail price, as the article linked below also seems to indicate.

     

    Microsoft Starts Global Rollout of Retail Consumer Web Sites

    http://rcpmag.com/news/article.aspx?editorialsid=9933

     

    OneCareBear

    Wednesday, August 20, 2008 4:46 AM
    Moderator