Author: margolies,marc
Date: 11:00:33 06/13/03
Go up one level in this thread
let's examine your math for a moment because it is a concrete issue. small-label Chess software includes support in its price, right? Under your model that cost must be shifted to the buyer's needs just like mass market software. Example: a large number of occassional users clog support based upon incresased sales at much reduced prices. New lower Profit margin requires smaller support staff. Serious chess players can't get real questions answered. Programmer designers no longer have useful feedback and need to buy generic market research. Products become bloatware. I think you know the kind of companies I speak of. Conclusion lowering the price for you might not actually help because the product stops evolving and what you don't pay for initially could end in support payments. On June 12, 2003 at 06:53:12, Harald Faber wrote: >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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