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Subject: Economy

Author: Harald Faber

Date: 03:53:12 06/12/03

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On June 12, 2003 at 04:22:02, Bernardo Wesler wrote:

>I wonder why there is piracy..... There are many marketing researchs that states
>differents % of piracy depending upon the countries.....
>What I really think about piracy is that if the programs (I mean whatever
>program not only chess ones) were cheaper, the % of piracy would go down
>dramatically......
>I am sure (and here I challenge chess corporations to show me the other faces of
>this matter) that for example if fritz 8 or shredder 7 would cost 5 or 10
>dollars each, they would sell thousands of programs because that way it would
>not be worth while to do piracy...... Their profits would be higher than now,
>not only because of the more sales , but having reduced their costs spending
>less money in security matters (sophisticated antipiracy protection, and so on).
>I coudl challenge them to try to sell Fritz 8 or best the next Fritz 9 for
>example, in 5 dollars and have them permitted being downloaded and paid online
>instantly by credit cards. They would be surprised about how they will rise up
>their sales and their profits.......
>Thx


Assume production costs for a product of US-$ 50. Every cent above is profit.
Assume a price for this product of US-$ 200. Profit is US-$ 150.
Now you halfen the price to US-$ 100. Profit is now only US-$ 50.
So you need to sell 3x more copies to reach the same profit, not only 2x
(200/100).

This is just an example, I don't know any sums in the ChessBase software
business. This is just to show you that some simple calculations might be damn
wrong.




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