From: richter@nic (Adam J. Richter) Subject: Re: ANNOUNCEMENT: Alpha Linux/GNU/X && Windows/NT SDK/DDK Date: 30 Nov 1992 10:39:46 GMT
In article <1f4rgeINN1ii@neuro.usc.edu> merlin@neuro.usc.edu (merlin) writes:
>I would agree the price was reasonable if the distributor either wrote the
>code or could show some kind of proof of ownership. In the absence of any
>lawfull claim of ownership then I suspect we ought to be thinking more in
>terms of compensating him for distribution costs -- and for no other costs.
On the one hand, I don't agree with your reasoning. Neither
the production effort, nor the capital needed, nor the value to the
customer are necessarily proportional to "distribution costs."
On the other hand, I accept your right to decide the
principles by which you will make your purchase decision. I'm
currently looking at a marginal cost of $35.70 to fill each
alpha/beta/1st-production subscription. Remember, I'm not just
selling one CD; I'm selling three CD's, six floppies, and three
manuals distributed across three shipments. If I were to distribute
the fixed production costs over 200 individual subscriptions, then the
average cost to fill a subscription would be $53.70, and the fixed
production costs are more than matched by the operating costs of the
company. Of course, I will find ways to lower the production costs,
such as by having the release notes printed rather than photocopied
and looking for better deals in a number of areas such as shrink
wrapping or reasonably fast shipping. Also, It's fair to say that my
marginal production costs would drop significantly if I were to
produce in higher quantities. Even so, at $99 + $5 S&H I actually
have to sell more subscriptions than you might think.
By the way, there are plenty of other reasons for the $99
price, which have to do with reseller channels and someday buying
advertising. As a reference point, consider that a full page
magazine ad typically costs from three to ten cents per reader.
-- Adam J. Richter 409 Evelyn Avenue, Apt. 312 Yggdrasil Computing, Incorporated Albany, CA 94706 PO Box 8418, Berkeley CA 94707-8418 richter@cerfnet.com (510) 526-7531, fax: (510) 528-8508 (510) 528-3209