When I worked at Radio Shack, there was a "loss coverage" ammount worked 
into every store's budget.  The corporate stores have a percentage of 
volume that could "grow legs" or be written off for store usage (a set 
of A/V cables might be used to hook up the TV section, for example) 
without too much of a problem.

To combat this, though, they tied a part of the store manager's bonus to 
the difference between what a store lost and what was allowed.  If a 
store went over their percentage, heads would roll, the more under a 
store was (the less that was lost), the better for the manager.

That's retail, not entertainment or development.

I don't have any experience with professional disk-based software. 
Everything that I've done is direct to client with them owning what I 
build, so I don't have any experience with software piracy.

As far as movie or music piracy (the issue at hand), yes it happens, has 
happened and will happen for some time to come.  It's not really right, 
but did you know that by recording a song off the radio you're commiting 
  an act of piracy?  Sheesh.

Hatton

Todd wrote:

> If you are writing a business plan and don't take that in to account, you
> are a lousey business person.
> 
> Todd
> 
> ----- Original Message -----
> From: "Hatton Humphrey" <[EMAIL PROTECTED]>
> To: "CF-Community" <[EMAIL PROTECTED]>
> Sent: Wednesday, May 15, 2002 9:37 AM
> Subject: Re: Episode II
> 
> 
> 
>>How do you build a good business model where a percentage of your
>>inventory is "stolen"?
>>
>>Don't get me wrong, so I'm not sinless and I'm not going to throw
>>stones, but if you were writing a business plan how do you figure on
>>"Percentage of sales lost because someone decided they wanted to get it
>>for free from a buddy."?
>>
>>Hatton
>>
> 
> 
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