Hi Ivan,

Oh if only it were true...  However, software like Altium Designer keeps 
growing to incorporate user requests.  Also growing by leaps and bounds is 
the cost of living in general.  People work at Altium, and they expect to 
get paid for their efforts so they can maintain a decent standard of living.

Hardware gets easier to make with quantity and technology.  Scale of 
production can reduce costs as automation makes assembly easier and 
faster.  However, once the radio is built it doesn't get quarterly updates 
to fix the static or loose knobs.  If it works well, it may get a new 
cabinet for the next model year, but the guts are still basically the same 
year-after-year.

Software expectations and maintenance are nothing like a consumer 
electronic product.  For example, the first version of Protel came on one 
1.44mb floppy disk, and the next version took two floppies - both ran only 
on DOS.  Version 3 came on 5 five floppies, and it ran under 
Windows.  Protel98 and subsequent versions came on compact disks because of 
the size of the compressed installation files.  Altium Designer comes on 
two compact disks, and requires several gigabytes of disk space to install 
the more than 21 thousand component files from which it is 
comprised.  Every version has gotten larger and more complex, and each 
version has kept pace with the improvements in the underlying operating 
system.  No two major versions of Protel were ever just a change of 
packaging, or minor upgrades of existing code.

A journey back through the archives and the Protel/Altium knowledge base 
will reveal a constant flow of feature requests from users.  Most of those 
features and capabilities have been incorporated, which accounts for the 
growth in size and complexity.

What once required just one clever engineer (Nick Martin), now requires a 
staff of specialists - each with a concise piece of the software to 
maintain and improve.  At least four other companies have been purchased 
and absorbed into Protel to create Altium.  Those acquisitions were driven 
by the need and desire to grow the product to meet consumer demand for more 
and more capability.  Protel/Altium went public to raise money to expand 
from a one man company to a corporation capable of producing larger, more 
capable, products.  This is called planning for business success.

Where in that history and business model would a product price reduction be 
reasonable?  Look at inflation in general - everything from bottled water 
to gasoline has nearly doubled in price over the past 15 years.  Salaries 
have increased to accommodate the increased cost of living.  Government 
regulations and taxes also have increased the cost of running a physical 
plant from which to do business.

Have you decreased your prices as your speed and knowledge have increased 
with experience, and you customer base expanded?  Have your mortgage or 
rent, insurance, utilities decreased in cost?  I know you run your own 
business Ivan - are you making more or less profit at the end of the year 
than you did a decade ago.  If the answer is more, did you have to increase 
prices to make it happen?

---- Economics 101 ----
Nothing happens in isolation in the business world.  Increasing the cost of 
gasoline because of storm damage to the refinery causes the truck driver to 
want a higher wage to pay his gasoline bill.  Increasing the truck driver's 
wages increases the cost of a head of lettuce at the market because of the 
increased cost of delivery.  The increased cost of lettuce causes the 
people buying the lettuce to want more from their employers to help pay the 
higher grocery bill.  The increased worker wages for the lettuce eaters at 
the widget factory cause the owner to raise his prices so he can still pay 
his overhead costs.  The increased widget costs cause the truck driver (who 
also is a widget user) to demand higher pay at the next union 
negotiation.  Etc, etc...

Regards - Harry

At 09:02 AM 3/21/06, you wrote:
>Brad Velander wrote:
>  > Sure their software is worth more than it used to be but not more than
>  > doubling the price in the past 4 - 5 years.
>
>True, in fact, I'd say that in some ways there is justification for pricing
>it less.  Hardware is subject to incremental improvement in functionality
>and decreases in price over time.  Every other technology good follows this
>pricing trend - why doesn't software?  It's not as if each new release must
>be a complete rewrite from scratch - much existing code is modified and
>augmented.  What is the justification for perpetually increasing the price
>of software?  Could it just be greed?
>
>Best regards,
>Ivan Baggett
>Bagotronix Inc.
>website:  www.bagotronix.com
>
>
>Brad Velander wrote:
> > Harry, Mike,
> >       This whole thing is getting blown out of proportion. I posted the 
> details that I did because there were different stories being debated 
> when it came to what Altium was supposedly quoting various users with 
> regards to the upgrade. When I received my solicitation I could see 
> between the lines of what others were saying. So I posted it to aid in 
> understanding the current pricing situation and sorting some of the 
> various comments that were coming out.
> >
> >       I do seriously think that Altium is acting maliciously and 
> without regard towards their customers. Sure their software is worth more 
> than it used to be but not more than doubling the price in the past 4 - 5 
> years. Not when you only look at the core features of Sch & PCB design. 
> For those two tools they are quite quickly pricing themselves out of the 
> market.
> >
> > Sincerely,
> > Brad Velander
> > Senior PCB Designer
> > Northern Airborne Technology
> > #14 - 1925 Kirschner Road,
> > Kelowna, BC, V1Y 4N7.
> > tel (250) 763-2329 ext. 225
> > fax (250) 762-3374
>
>
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