[NZC] Fw: Why it's important that we explain the reason we've lowered our media price to 19 cents.

["Lee McC" <leemcc1@xxxxxxxxxxxxxx>]

American list members and CDR users may want to read this- This 
company
makes great discs.

- ----- Original Message -----
From: "Charles Palmer" <palmer@xxxxxxxxxxxxxxxxxxx>
Newsgroups: alt.comp.periphs.cdr
Sent: Wednesday, June 13, 2001 11:15 PM
Subject: Why it's important that we explain the reason we've lowered 
our
media price to 19 cents.


> Greetings everyone,
>
> Some of you will consider this spam.  I'm sorry, but I can't change
> what you may think.  I only ask that you keep your cool for a minute
> and read what I have to say.  It is that important.
>
> I'm Charles Palmer.  Many of you know who I am.  I am one of the
> owners of CD-Recordable.com.  For those of you who are not familiar
> with who we are, CD-Recordable.com is the webstore for the only U.S.
> owned manufacturer of CD-R media on American soil.  There used to be
> more of us, but now we're the only one left.  We too may be gone 
> soon.
>
> We've done an extremely radical and risky thing in the past week.
> We've lowered the price of our primary CD-R media to 19 cents per
> disc.  That's exactly our cost to manufacture the disc (no profit at
> all, zip, nada).  I told you it was pretty wild.
>
> Here's the reason we did it:
>
> We did it to keep the giant Taiwanese manufacturers of CD-R from 
> doing
> what they've waited 18 months to do - and that is raising the price 
> of
> media 2, 3, or 4 times its current price by year's end.  If you've
> been reading any of what's been written about the CD-R market in any
> of the industry trade magazines or financial newspapers, every 
> expert
> is claiming that the Taiwanese manufacturers are about to spring the
> last part of their trap on the U.S. CD-R market.
>
> As the last surviving American manufacturer of CD-R media, we have
> always put all of our efforts into looking after the American
> consumer. We like to think of ourselves as the tiny DAVID of our
> industry, constantly battling the massive GOLIATHS from Taiwan who
> have wreaked havoc on the U.S. market by dumping low-quality CD-R
> media into the market at low, predatory pricing levels over the last
> 18 months in their effort to run all other CD-R manufacturers out of
> the industry (which they have been very successful at doing). This 
> was
> done for the typical reasons that companies practice dumping, which 
> is
> to eliminate competition so that market domination and control can 
> be
> achieved. The handful of companies which are left will then control
> the entire production capacity of a consumable product (like CD-R),
> and then can freely dictate the prices consumers would have to pay 
> for
> this product in this newly competition-free market environment (it's
> Business and Economics 101). That is exactly what is happening in 
> our
> industry.
>
> We have decided that we have to be the American consumers last 
> defense
> against this predatory practice. Please remember that almost all
> brands of CD-R media are actually OEM products. Two or three major
> manufacturers in Taiwan produce 90%+ of the worlds CD-R, and that
> media gets re-branded under names like Sony, Maxell, Memorex, Ricoh,
> Imation, CompUSA, Etc. Thats how a handful of giant media
> manufacturers can control the pricing of nearly every brand name in 
> an
> industry (up or down). We cannot stand by and let that happen. We 
> are
> a comparatively tiny company, and the last U.S. manufacturer left
> standing, but we plan on keeping our base media priced at 19 cents 
> per
> disc (for as long as we can possibly hold on) simply to keep the
> Taiwan-based CD-R monopoly from running away with the price of this
> product. They have pushed the price of media this low, and now we 
> are
> going to make them keep it there for as long as we can. If market
> prices increase regardless of what we do, at least we will remain 
> the
> one source where the American consumer will not be held hostage.
>
> We have always been unique in our industry (via our e-commerce site
> CD-Recordable.com, we are the only CD-R manufacturer to sell media
> direct from the factory to the consumer via the internet). We intend
> on remaining unique by being the only manufacturer of this product 
> not
> intent on raping the American customer.
>
> What's at stake is the future prices that you'll have to pay for 
> CD-R
> media.  We think that is certainly a good enough reason to do what 
> we
> have done with our price (and important enough to risk being called
> "spammers" by anyone who thinks that our posting here was done for 
> our
> own gain, and not the benefit of you the consumers).  We thank you 
> for
> letting us tell our story here.
>
> Regards and successful CD burning to all,
>
> Charles Palmer
> CD-Recordable.com
> http://www.CD-Recordable.com