Path: utzoo!mnetor!uunet!husc6!bloom-beacon!think!ames!sdcsvax!ucsdhub!hp-sdd!ncr-sd!crash!pnet01!haitex
From: haitex@pnet01.cts.com (Wade Bickel)
Newsgroups: comp.sys.amiga
Subject: Re: Dongle blues (software prices)
Message-ID: <2446@crash.cts.com>
Date: 29 Jan 88 13:56:13 GMT
Sender: news@crash.cts.com
Organization: People-Net [pnet01], El Cajon CA
Lines: 43

chanst@atrium.UUCP (Steve T Chan) writes:
>Todd is right.  There are too many middle man and distributors involved, 
>and of course they all wanted their share of profit, which makes software
>prices so high, if the companies would (I doubt it) distribute their own
>software directly to our friendly neighborhood dealer, I am sure that
>software prices will be down drastically, since the author of the program

        Perhaps.  But consider the following.


           1)  Each distributor removes part of the work load from publishers
                 and such.  Without the distributor the publisher must hire
                 additional people.   50 publishers all need, say, one extra
                 person, as opposed to a handful of employees at the distrib-
                 torship.

           2)  Distributors bear risk when they buy product as well.

           3)  Distributor's tie up capital in software, and must be
                 compenstated for this at a level beyond that attainable
                 through alternative available investments.

           4)  If the distributor's could be cut out they would be.  In most
                  markets they provide a service that is useful.

           5)  If the distributor's were getting fat, more distributors would
                  appear and competition would solve this.


           Finally I have a question.  What rate of return on investment for
        each party concerned do you (anybody) think is fair?  Consider the
        Author, Publisher, Distributor and Retailer.


                                                Thanks,


                                                          Wade.


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