Word: low-end
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...Low-End Theory by A Tribe Called Quest...
Conceived by brother-sister team Anita Chaffee and Tim Russell, the $16.35 No Moon costs at least three times as much as its low-end equivalents. But, says Chaffee, "for the extra money you are getting a gown that has much more function, design and comfort to it." After a trial order of 12 dozen from La Jolla's Green Hospital in January 1990, the gowns were boosted by exposure at the California Association of Hospitals and Health Systems convention in Palm Springs last October and an article in Modern Healthcare magazine in January. Result: the company has received inquiries...
More important, sales of large IBM mainframe computers, which account for about 70% of the company's $50 billion in revenues, are being hurt by archrival Digital Equipment Corp. DEC sells the popular VAX line of so-called superminis--midsize computers that can do the work of low-end mainframe models, often at less cost. Companies that want to link many personal-computer users together into a network can sometimes do so more cheaply with a supermini as the central computer than with a mainframe...
...Young, healthy people will increasingly opt for health insurance that rewards them for being healthy," she said. "They are willing to take the gamble that they don't need low-end coverage...
Fortunately for the industry, higher-priced microcomputers have not succumbed to the price cutting that has bedeviled the bottom portion of the market. Apple and IBM continue to sell full-price personal computers ($1,500 to $4,000) as fast as they can ship them. Even among the low-end companies there have occasionally been flashes of rational pricing strategy. Timex, for example, has systematically reduced its prices on the Timex Sinclair 1000 to help clear the way for more powerful and more expensive models due later this year...