Re: Scaling noise

[Timothy Miller]

Larry McVoy wrote:

> You don't make that much money, if any, on the high end, the R&D costs
> dominate.  But you make money because people buy the middle of the road
> because you have the high end.  If you don't, they feel uneasy that they
> can't grow with you.  The high end enables the sales of the real money
> makers.  It's pure marketing, the high end could be imaginary and as
> long as you convinced the customers you had it you'd be more profitable.


I think some time in the 90's, Chevy considered discontinuing the 
Corvette.  Then they realized that that would kill their business. 
People who would never buy a Corvette buy other GM cars just because the 
Corvette exists.  Lots of reasons:  It's an icon that people recognize, 
it makes them feel that other Chevys will share some of the Corvette 
quality, etc.


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