In article <2kp61f$ln0 at ysics.physics.sunysb.edu>,
<mhollowa at epo.som.sunysb.edu> wrote:
>>... It
>wouldn't even have to be the mega-package they're selling for > $1000. I
>suspect that for every lab that's going to spend $1000 on a multifunction
>package there will be more than 10 labs that will spend $100 on a part of
>that package, or on something that hasn't cost the programer as much to
>produce.
Look at the numbers. The NIH gives out about 25,000 grants total
every year. I doubt whether 20% of those are to molecular biologists,
but lets assume that's the number. That's 5000 potential US customers
- max - at market saturation (which will never happen). Consider the
costs for programmers, secretary, advertising, possible sales force,
etc and the maximum $500,000 that you would get from your $100 package
disappears very quickly. And then, what about year 2?
The only sophisticated software products on the market that
cost < $500 sell in the 1,000,000's of units. Almost any product that
sells in the 1,000's of units, requires substantial support and
sophisticated programming sells for > $10,000.
Bill Pearson
