On 9/6/05, Jack Carroll <[EMAIL PROTECTED]> wrote: > On Tue, Sep 06, 2005 at 01:17:10PM -0400, Timothy Miller wrote: > > > > > > So what you are saying is, the volume discount is due to less handling > > > and > > > therefore gives the same profit to the company? > > > > Basically, although profit does often go down with volume sales. > > > Of course, maximizing profit per unit is not the same as maximizing > total profit. Total profit is what comes down to the company's bottom line. > Bill Gates was apparently the first in the software industry to realize that > and act on it, and that's why Microsoft grabbed the mass market and stifled > all the Unix vendors.
Agreed. A similar tactic is used by many large retailers. They lure you into the store with, say, laundry detergent that's sold at a loss in the hopes that you'll also buy a number of their higher-profit items while you're in there. Of course, I won't be running a retail store any time soon, and with a relatively small number of products, I'll have to make a profit on each one. And by "profit", I mean "R&D funds", because I don't expect to draw an income from this any time soon. Every penny that comes from the prototype product will be reinvested in the ASIC and graphics card development and production. Profits from THAT will be divided between R&D and building capital. Maybe at some point, I'll take a salary or dividends or something. But that's not the point. The point is to develop open architecture graphics card and perhaps other peripherals. Making a personal income will have to take a back seat, and getting rich is not even something I'm thinking about. Heck, I bet I'll have to hire someone else to do something I can't do before I get to take a salary myself. And don't think I'm so altruistic. If it's not money I can have, I'll settle for fame. :) _______________________________________________ Open-graphics mailing list [email protected] http://lists.duskglow.com/mailman/listinfo/open-graphics List service provided by Duskglow Consulting, LLC (www.duskglow.com)
