well one thing is for sure ...............SOMEONE will always do it cheaper
and that's all I got to say
----- Original Message -----
From: "Scott, Andrew" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Monday, September 11, 2000 7:46 PM
Subject: RE: Hotel Booking Engine up
> Well funny you should make a reference to "Hello World" example, there is
a
> site out there don't know it off the top of my head, but there are
thousands
> of ways to write this little bit of code:-)
>
> Yes Volume dictates the price of any application, and in MS for example
they
> receive a lot of the cost back in support. But they know that they can
> charge whatever it costs in the US, because if they charge 5 times the
price
> people would not buy it, so do get the volume as you say it needs to be
> competative and appealing to purchase.
>
> Ok lets take the cost of something a little further, say I rewrote one of
my
> applications to be sold on the net. I would need to make sure I make
> something out of it, for sure. However it will not sell if I was to charge
> more for it than someone else could write it for, I mean what would be the
> point. I am in the business of saving my clients money, and I always look
on
> the net for something that does what I am looking for or close enough that
> can be modified and I am sure all you people do the same.
>
> However if I look at the time it would cost me to develop (already done in
> the design, planning stages) then why would I spend $00's of dollars more
to
> buy something that might end up costing me thousands in support, downtime
> and code rewritting to develop it the way it should be. And this is the
key
> issue for my clients, and I will always adopt this method regardless:-)
>
> And I agree with your calculations etc., but look at it from the above
> statement. To create volume you need to capture the market, and you WILL
not
> capture the market if someone else can always do it cheaper.
>
>
> regards
>
> Andrew Scott
> ANZ eCommerce Centre
> * Ph 9273 0693
> * [EMAIL PROTECTED]
>
>
> -----Original Message-----
> From: Gregory Gooden (Annex) [mailto:[EMAIL PROTECTED]]
> Sent: 12 September 2000 13:27
> To: '[EMAIL PROTECTED]'
> Subject: RE: Hotel Booking Engine up
>
>
>
> > -----Original Message-----
> > From: Scott, Andrew [mailto:[EMAIL PROTECTED]]
> > Sent: Monday, September 11, 2000 7:09 PM
> > To: '[EMAIL PROTECTED]'
> > Subject: RE: Hotel Booking Engine up
>
> You brought up too many juicy points, so I couldn't resist to add another
to
> this thread <grin>.
>
>
>
>
> > That is a fair comment to make, and I can say that the
> > experince is the same
> > here. I do contract work for companies who require my
> > services, and the code
> > I use always is written from scratch, for legal reasons. But
> > because I have
> > done it once before or even twice before I find that I can complete it
> > faster the next time I need to do it, not to mention its
> > always better the
> > next time around as well.
>
> Indeed!
>
> > However without getting into any legal issues, I can look at
> > something and
> > see how its written without looking at the code. This makes
> > me unique in a
> > way I guess, because I find that it saves me a lot of trouble
> > buying things
> > when I can write the code from what I see on the screen in terms of
> > functionality.
>
> So you agree that when it comes to development, there's the writing of
code,
> and then there's the METHOD and USER INTERFACE that suddenly comes into
the
> picture.. (This can distinguish one developer from another actually).
>
> We could both write a "Hello World" application, and I'm willing to bet
that
> they'd look VERY different in terms of method and look (because we're two
> different people with different "angles" on it).
>
>
> > So that it why I made the origianl comment, I have been
> > programming now for
> > 20 years, and in this time I have seen MANY shareware or
> > modules like this
> > one where I belive the price to be too high, only because I
> > know the that
> > the cost it would take me to do it would be far less, it
> > would also work the
> > way I want it to work and I would also have the source code
> > to play with as
> > well and could make the changes etc without the support of a
> > 3rd person.
>
> But what you're really saying (imho) is that you look at price (we're not
> talking about value at this point) as a direct function of raw cost... I
> have more points to make about that below..
>
>
> > We now live a world that is connected by wires, geographic
> > location and
> > expereince don't really come into the picture. If I had the
> > time, I could
> > clean up my code to be released just as this person did and
> > have it sell for
> > $1000 (Aus) which is about $500 (us) we will always be
> > competing on a world
> > scale, so just because it took someone 1 hour or 20 hours is
> > not an issue,
> > demand is not an issue but being competative is.
>
> Correct! You see lots of "overseas" development houses out there.. Some
are
> good, some are not (just like dev houses or developers IN the US)...
>
> Supply and Demand certainly change as you widen the scale to a global
> economy.
>
>
> > All I am saying is that when marketing something, look at
> > Microsoft for
> > instance. If MS was to sell the Windows products nobody could
> > afford them,
> > because the R&D into developing these would be too high and
> > nobody would buy
> > the product. Good marketing is knowing how to sell your
> > product, and not get
> > a quick buck out of it.
>
> Here's where the meat of MY comments are.
>
> If Microsoft was going to make you a custom application, they'd charge a
> MUCH higher price than we are talking about here.. but what MS counts on
is
> VOLUME. Volume creates a "long term" financial scenario that permits them
to
> sell you windows98 for a lowly 89 bux.
>
> So back to this app that started the thread... The trick isn't "how much
> could I make it for", the REAL trick is, "How do I maximize my income from
> this work?".
>
> That's where you make the jump from a developer to a businessperson.
>
> Let's say I make a WIDGET, and it cost me 100,000 dollars to spec,
develop,
> market and support for the first year.
>
> If the widget is CUSTOM (1 customer), clearly I'm going to charge OVER
that
> amount so that I can make profit. Let's say in that scenario I charge
> 200,000.00 so I can make a profit of 100,000.00.
>
> But if I can sell that widget to multiple customers, why not sell it at
> 49.95? (this is presuming that I believe I can sell at least 5000 copies
of
> the software)... If you saw that the math is different (4004 copies
required
> to equal the first deal), you'll note that selling multiple copies
involves
> more costs, so that's where this hypothetical curve exists.
>
>
> > I mean would you buy an application written in Coldfusion
> > that cost more
> > than CF itself, I know I wouldn't and would prefer to program
> > it myself. I
> > just wanted to point out that it may have taken 20-100 hours
> > to develop but
> > there are applications out there that took maybe 50 times
> > longer with 1000
> > times more functionality for less than the price of this
> > application. People
> > tend to foget this when setting a price for their products:-)
>
>
> Amazingly enough, we sell a packaged application that is cheaper than
> ColdFusion (operating under the "volume model" mentioned above), and found
> that if we were TOO cheap, we sold less. Companies didn't like that the
> application was less than the required OS software. Wierd eh?
>
>
> > Anyway thats all I need to say on this subject.
>
> Sorry I continued it.. It struck home on stuff that I've been operating
out
> of for years now. :)
>
> Gregory
> Your Mileage May Vary...
>
>
> -------------------------------------------
> annex.com, Inc. - http://www.annex.com/
> -------------------------------------------
> - If you EcoBuild it, they will come. -
> - http://www.ecobuilder.com/ -
> -------------------------------------------
>
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