Getting Lotus to bundle to half profits

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Date: 1988



Date: November 7, 1988
To: Pate Higgins
From: Bil Gates
Re: Excel/Lotus


Another very important factor that we need to get working in our favor is the financial elements. If Manzi sees sales fall by 10% on 1-2-3 this will cut his profits in half. This is because he is running essentially a foxed cost operation .. We have succeeded in getting him to bundle some products (Learn, Speedup, Always, v3 upgrade) and hurt his COGS. We have not cut his sales or gotten him to spend marketing money. The effect of cutting Lotus's profit in half would be significant ...

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