Re: [ossig] Business Model

["Colin Charles " <byte@aeon.com.my>]

On 30 Dec 2002 at 17:12, Vincent Lee wrote:

> How about selling it at a higher price, but provide
> onsite configuration, after sales telephone support,
> viable?

Isn't the Malaysian market such that "what's cheapest is best"? 
People go the extra mile just to save a few bucks here and there, 
don't they? And companies in the dire economy of today, will probably 
be doing the same.

Onsite configuration is expensive on your side. Yes, that is a value 
added service, and its similar to the Imbi installation charge of 
RM80 or thereabouts. As for after sales telephone support, this is a 
really good idea, and then again, comes the cost factor.

Could have the option of telling the purchasers to pay an extra 
premium for the telephone support, and I think companies are bound to 
pay, as outsourcing the support will in the long-run for them seem 
cheaper (after all, how many Linux-capable people are there, out 
there?).

> So, the hardware + linux installation is only value
> added, but the service/consultancy is the core
> services to be provided.

Which is how Cygnus tries to survive. They provide the tools for 
free, but support and manuals cost dosh. Pegasus (the e-mail'er I 
use, and love) is also free, but manuals and support cost money.

Its a nice concept, and I think that we should give this a go. What's 
the competition like?

I know Interplay Systems would be competition of sorts. And at one 
stage, I recall a company trying to do Linux installs as well - the 
name eludes me at the moment. 

So, time for some market research in the dawn of 2003?

--
Colin Charles, byte@aeon.com.my
http://www.bytebot.net/


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