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Subject: Re: WMCC list of teams from 15th Oct including Hiarcs and Mchess

Author: Steven Schwartz

Date: 14:36:02 10/16/97

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On October 16, 1997 at 17:21:35, Chris Whittington wrote:


>It all depends how they sell it.
>
>1. Sell themselves, normally via a distributer.
>
>They will have to give 40% to 50% discount probably to the distributer.
>
>So out of $100, thet will see maybe $50.
>
>CD's ? Less than a dollar each, but they need to order in bulk for that,
>probably they get left with unsold units at the end. Say $2, including
>the art on the CD.
>
>Manual. Maybe $1 or $2.
>
>Translation: either they get it for free somehow, or it costs $500-$1000
>per language.
>
>So, after all the crap, they're going to see a good $40. If they get
>paid, if the distributer doesn't insist on SOR and so on.
>
>How may do they sell ? Good question. From 3 units to 500 units to 1000
>units ? If they are very lucky. Do they advertise ? $1000-$2000 a page
>at least. Then they normally have a loyal following for uprades at 50%
>of the cost..
>
>Maybe they get $30,000 after sales, maybe $100,000,. some of them. They
>don't look rich when you see them.
>
>Out of this, PC's, maybe a support programmer. All the general costs of
>running a business, fax, phone.
>
>2. Licence the engine to a product developer.
>
>The product developer will then either publish himself or licence it on
>it far away territories.
>
>For direct sales by the developer. Maybe the engine programmer will see
>10%, because the engine is not finsihed product.
>
>For licence sales of the finished product, maybe the developer can get
>20% of wholesale (this will be mass market, so $50, the wholesale of
>this will be around $20. The developer will get maybe $4. You can see
>that the programmer won't get rich here unless many many units get sold.
>Mass market only works for really big names, and console (PSX, Nintendo)
>ports.
>
>Chris

Chris, you forgot the fact that the programmers have to deal with us
resellers. They BETTER make a lot to make up for THAT experience!!!
Steve



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