Author: Harald Faber
Date: 02:02:10 04/08/03
>Suppose that a programmer of a good program decides to sell his(her) engine only as a winboard engine(it can run under Fritz in these conditions) >I am interested in your estimate for the following questions >How much money (s)he can get from it in the following cases: >1)The program is at similiar level to Crafty 0 >2)The program is at similiar level to Ruffian 0, same strength, same prize... >3)The program is at similiar level to Fritz8 50 bucks of course, same strength, same prize... >4)The program is 100 elo better than Fritz8 Something between 50 and 100, for me 100 is absolute limit and only justified when the engine beats ALL other competitors by at least 75%. >suppose for the discussion that a programmer decides to earn 10$ per copy that (s)he sells. >Suppose that the programmer expects to sell 120 copies per year. >What should be the price of the program? Uh, 10$ x 120 copies, this guy will become a very rich man. :-))) I have no overview, but of course the prize then has to be earn (10$) plus costs (??$). >Is the price significantly higher relative to the case that he expects to sell 1200 or 12000 copies per year? >Uri Economy lesson, part 1: Case 1) You have a product. Your costs are about 500$ per item. You sell it for 1,500$ per item. You sell 1,000 items. Case 2) Now someone comes and says: You have to half the prize! So you are stupid and really sell it for 750$. How many items do you have to sell more to earn as much as you sell with 1,500$ and 1,000 items? Idiots say: Half the prize, double the sold items. In this lesson, you learn: This is wrong. ;-) See: Case 1) lets you PROFIT 1,000 items x (1,500$ - 500$) = 1,000,000$ Case 2) lets you PROFIT 1,000 items x (750$ - 500$) = 250,000$ So you have to sell not twice as much... I know that the costs for 10,000 items are not 10x the costs as for 1,000 items, but this story will follow in Economy lesson, part 2. ;-)
This page took 0 seconds to execute
Last modified: Thu, 15 Apr 21 08:11:13 -0700
Current Computer Chess Club Forums at Talkchess. This site by Sean Mintz.