How much do you charge?

["Lewis A. Mettler" <lmettler@lamlaw.com>]

Everyone on this list is pretty smart, right?  Of course they are.  They
got their browser to work and that proves something.

Let's assume you are responsible for the research, development and
marketing of computer software products. (Some on this list have gotten
real close to suggesting they actually have this responsibility.)

Project A is projected to cost half a million in R&D and marketing over
the next 3 years.  How do you price the product?  If you assume a
certain sales quantity, how do you explain to the CEO or Board that the
quantity of sales you assume is realistic?  Do you rely upon forced
sales?  Do you know for a fact that a certain quantity of sales will
result regardless of what the competition might do?  What would you put
in a stock prospectus or IPO material on this point?  Do you sell below
the marginal cost of distribution?  Do you sell below the combined cost
of R&D and distribution?

Project B is projected to cost two hundred million in R&D and marketing
over the next 3 years.  How do you price the product?  If you assume a
certain sales quantity, how do you explain to the CEO or Board that the
quantity of sales you assume is realistic?  Do you rely upon forced
sales?  Do you know for a fact that a certain quantity of sales will
result regardless of what the competition might do?  What would you put
in a stock prospectus or IPO material on this point? Do you sell below
the marginal cost of distribution?  Do you sell below the combined cost
of R&D and distribution?

Project C is projected to cost half a billion dollars in R&D and
marketing over the next 3 years.  How do you price the product?  If you
assume a certain sales quantity, how do you explain to the CEO or Board
that the quantity of sales you assume is realistic?  Do you rely upon
forced sales?  Do you know for a fact that a certain quantity of sales
will result regardless of what the competition might do?  What would you
put in a stock prospectus or IPO material on this point? Do you sell
below the marginal cost of distribution?  Do you sell below the combined
cost of R&D and distribution?

These are not hypothetical questions.  Actually, they are, but I want to
know how you would answer them. I want to know what you would tell those
who need to approve projects A,B and C.

-- 
Lewis A. Mettler, Esq.(Attorney and Software Developer)
lmettler@LAMLaw.com
http://www.lamlaw.com/ (detailed review of the Microsoft antitrust
trial)