>> Except for MS, most commercial software companies
>> make only a decent profit after expenses. Software
>> developers are *very* expensive. 2 developers x
>> (roughly $80K salary + $70K overhead) means even
>> small projects easily cost > $250K.
>>
>> $250K/$20 = 12,500 sales minimum, not counting the
>> huge number of other fixed and varible costs
>> (advertising, sales, support, distribution, taxes,
>> etc...)
I think the $70K overhead/programmer for a small
company is a little outrageous (for more info see
f@#kedcompany and the discussion on how ebags.com had
to lay off 100+ people and how many people it really
takes to sell bags on the internet). I see a program
like Bejeweled selling for $12.95. It probably could
be programmed in 1-2 man months. So based on the
formula up there, I get about $50K to develop it.
That brings the cost down to $4.
I think $5 or so is fair for a product. Of course
there are exceptions, but not many. Hell I would even
pay Aaron $5 if he would get pilrc to work with my new
fancy makefiles :>
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