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Subject: Re: If Chessbase engines' costs were (lets say) 10 dollars.......

Author: Dann Corbit

Date: 14:46:53 09/06/05

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On September 06, 2005 at 17:38:42, Bernardo Wesler wrote:

>....I (according to American Marketing Association estimates)assure they would
>sell ten more times than nowadays......

At (therefore) what is probably a considerable loss.

Development costs are fixed and are purely a function of headcount.

Manufacture and packaging are fairly negligible (pressing a CD is less than 50
cents).

Technical support for each engine sold will still be the same, and is probably
the broad majority of the cost [as an average].  One person consuming a total of
one hour will probably negate 30 sales at $50.  If you cut the margin way, way
down, you will never recover.

If you sell something below cost, then the more you sell, the more money you
will lose.

>Their downloadable  engines (in case
>they make that decision) would give them a much bigger profit than today.....
>Many people are willing to pay a 10 dls copyright of an engine than 50 or 60 dls
>copyright for the same gui several times a year........fritz 8 gui, shredder 9
>gui, hiarcs 9 gui, and so on..... The important thing is the engine; anyway u
>can ask to Stefan (Shredder's creator) about these items and his opinion.
>Thx in advance.

I am guessing that the ChessBase executives have looked at these sorts of
possibilities.



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