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From: cbmvax!uunet!math.ucla.edu!jimc
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To: lojban-list@snark.thyrsus.com
Subject: Software pricing
Date: Wed, 17 Apr 91 15:19:46 -0700
Status: RO
X-From-Space-Date: Wed Apr 17 18:05:57 1991
X-From-Space-Address: cbmvax!uunet!math.ucla.edu!jimc

Bob Chassell's recent posting about software pricing says everything I 
wanted to, but better.  I also agree with the $20 breakpoint; that's
about the level at which I don't have to think about budgeting.  

Another point about pricing:  On something like a car or a refrigerator,
the cost of materials, labor, etc. to build a specific car is a
substantial fraction of the sale price of that car, whereas generic
costs (R&D, lawyers, paper-pushers, etc.) are comparatively low :-) :-(
Whereas with software 99% of the cost is up front, and the cost to 
reproduce the discs, print the manual and mail the thing out is just
one or two dollars.  Thus you get a positive (marginal) cash flow at
almost any price, and the art is to hit the dropoff in the demand curve,
just below the point where people start to say "that's too expensive"
and don't buy.  I think $20 is about right.  

		-- jimc