On Wed, 2003-01-15 at 21:39, Miark wrote:
> Despite today's date, he doesn't know what's going on with Mandrake's
> bankruptcy. He complains about the low value of boxed Linux-Mandrake,
> and say that Mandrake Club is useless and that votes mean nothing.
> He's suggesting mutiny against Mandrake because it's a for-profit
> organization.

Not only that, Miark...but more importantly he is suggesting that there
be a fork of the Mandrake distro using of course Mandrake GPL'd distro
packages and code.  This is a very dangerous suggestion in the here and
now, when the new Mandrake management team has not even had a chance to
prove itself, it's direction, and it's attitude yet.  In short, it seems
premature and very disloyal, no matter what Ben Reser's claims to the
contrary.  I think Mandrakesoft should be given time to prove itself
before somebody kicks them when they are down.  It is an extremely
poorly timed article which discredits itself with it's timing, no matter
how good the negative points may be.

Another point that I saw as completely off base from an entrepreneurial
perspective was his scheme on pricing.  To put it succinctly, it is
completely backwards.  If you undervalue your product's pricing, then it
will be percieved as being of a lower value.  If the product's pricing
is higher, then it is percieved as being of higher value.  Reser
proposes lowering Mandrake's boxed set pricing even lower, even in the
light of the financial situation of the company!!!  Think about that,
and while you do, consider the price of XP which is a far inferior
product to Mandrake, and also consider that M$ is a profitable company
making money off an inferior and defective version of spyware disguised
as a half baked OS.  Now then does it make sense to devalue your own
honest, straightforward, robust and superior product??

This is the first mistake that young entrepreneurs make when starting
their businesses.  I've seen it happen nearly hundreds of times in
startups; inexperienced startup peeps underpricing their stuff out of
fear.  If you underprice your stuff then your customers will undervalue
your stuff.  This not only applies to merchandise, but also to hourly
labor; especially so in fact.  You may not believe it but I just got off
the phone six hours ago talking to a firm partner giving this very same
advice cause they were making the very same mistakes.  How are they
doing?  They are backsliding financially.  And so will every other firm
that makes this mistake; including mine.  Seven years ago I learned the
hard way.

Anyway....Mandrake needs to keep their product priced at the level that
it's worth, but within reach of the regular consumer.  This to me means
a compromise between the cost of some high priced winblows bullsh*t and
the pocketbook of the middle class American.

--LX

-- 
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