Re: Simple Economics 101 Was: Cracked

Richard Holloway

Thanks, I agree with your position too with just a slight twist-- surely there are vastly more Windows and Apple users and the cost to develop is the key factor to divide out per license. I also suspect that support may be more complicated (costly per user) with JAWS, partly because there are so many fewer users such that more of the problems have to get solved by FS directly, as opposed to in forums like this-- just a gut feeing there.

The fact remains however that there is no real "Pepsi" to their "Coke" (maybe there is the odd "store brand" cola), and that always leaves more room for the one item I think you did leave from your list: profit margin.

On Feb 4, 2012, at 12:12 PM, Farfar and His Beamer wrote:


I like your style.

To amplify what I believe cecropia64 was saying: The price charged for a
product is based on what it cost to develop, what it costs to duplicate,
what it costs to support, what the employees earn in salary, what it costs
to rent the building, what the next version will need for development, etc.;
all divided by the number of copies to be sold.

A rather large amount of investment for a fairly small (in Windows or Apple
terms) user community. We are after all a niche community of users so a
large cost borne by a small group = high cost per copy. Simple economics.

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