Author: Uri Blass
Date: 02:33:59 04/08/03
Go up one level in this thread
On April 08, 2003 at 05:02:10, Harald Faber wrote: >>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... I guess that most of the people who buy based on strength will not buy something that is not better than Ruffian but not all are the same. > >>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 mathematics. > >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 is exactly the question that I ask. What is the cost that I need to pay to sell x items(if we assume that there are buyers)? It is clear that only sending the program by mail cost money. I also guess that copying a program many times can cost less money for one copy. Uri
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