[thelist] cheap software spam - how do they do it?

[Ken Schaefer]

: -----Original Message-----
: From: thelist-bounces at lists.evolt.org [mailto:thelist-
: bounces at lists.evolt.org] On Behalf Of Shawn K. Quinn
: Subject: Re: [thelist] cheap software spam - how do they do it?
: 
: On Sun, 2006-03-12 at 21:42 -0800, Max Schwanekamp wrote:
: > $1200 is a lot for a commercial "blob of bits" but consider what your
: > might tools cost in another business.
: 
: You're comparing apples to oranges here. I think it's a bit unfair to
: compare physical goods with something which can be reproduced at little
: to no cost.

Not entirely. Producing and marketing a physical product includes all sorts
of initial setup, design and testing costs which need to be recouped across
the sales of the product. You could say that the cost of the physical product
needs to recoup both the variable cost of the item, as well as the fixed cost
in developing the product. Software is no different. The marginal cost per
unit is low (maybe a few dollars to press a CD), but that doesn't mean that
the fixed costs are insignificant. Look at electricity - it costs next to
nothing to supply a few extra watts to your house. Does that mean electricity
should be free (or nearly so)? Not at all - there are vast expenses in
building power stations and transmission infrastructure that need to be
recouped by supplying electricity.

Cheers
Ken