On May 13, 2007, at 11:06 AM, Norman Palardy wrote:

> On 13-May-07, at 11:53 AM, Tim Jones wrote:
>
>>> Which is why you use RB pro so you can target Mac and Windows
>>
>> But, we can't come close to producing the type of apps in RB that can
>> be produced in VB - the code just isn't strong enough.  This is why I
>> used the comparison.
>
> personal experience with various commercial product made in RB
> suggest this is not true
>
> Check out XSilva Systems RB made app

Which furthers our discussion into the dependence of external items.   
Nothing visible in that app (except possibly the Bevel buttons) is  
native to the RB framework.  Otherwise, all of us would make apps  
that look like Lightspeed (and it IS a fantastic app).  How much of  
the product is the result of heavy 3rd party tool use, declares, or  
very custom canvas work?  They may have used RB for the compiler, but  
my suspicion is that the loss of the 3rd party code or the developer- 
hours invested in the custom look-and-feel would result in their not  
being able to release that app.  Also, is it cross platform  
(rhetorical question)?  David, are you still reading the NUG?

>> My point was that If we're selling 500K copies, we can easily absorb
>> a $999 price for a 3rd party add-in as Bob mentioned.  However,
>> selling 1K copies makes either absorption difficult or causes us to
>> raise our prices for the product about that $99 pain point.  Now, the
>> cost of producing that tool moves from the development tools' price
>> to the cost of marketing the product so that the customer perceives
>> of that additional value.  Which in turn causes the cost of
>> development to increase, and so on.
>
> Am I reading that correctly ? 500,000 copies would allow you
> incorporate a < 1000  plugin and cover it's cost ?
> Even at 1K the cost is $1 per copy

No, you're not reading it correctly.  The 500K number was used to  
firmly contrast the potential Mac market against the potential  
WIndows market.

I didn't mention that this $999 control was one of 18 such licenses  
that were potentially used (Now we're at $18K), nor that there could  
be over 1400 developer-hours in the project ($60K), nor that there  
could be $150K involved in the marketing of the project over 6 months  
($210K), or that the manufacturer would need to define a projected  
2500 support hours annually ($290K), and over 500 hours for  
documentation ($310K), or the nearly $200K that would be spent on  
patent and IP research and legal fees to file copyright and trademark  
registration data ($510K).  So this project could cost a company  
$510K to bring to market - and that cost would apply to both Mac  
development OR Windows development (where do you think you'd be most  
likely to recoup the costs?).  So yes, that one plugin rounds out to  
less than 1 penny per copy (assuming 500K copies), but it's just a  
small piece of the total development process cost.  Does that make it  
a bit more clear as to my real point?  Unfortunately most single  
person shops don't understand exactly what goes into the release of a  
new product from the perspective of a larger company.

>> I also know that from what I see on the lists and in the forums, most
>> users of RB are captive developers - developing for a specific  
>> customer
>> or for in-house projects.  That can make the cost offset even more
>> difficult as the potential user count has now dropped into the 10's
>> of users.  However, this can also hide the costs of development as
>> they can either be consumed as a "business expense" since the
>> development was paid for by the hourly wage paid the developer.
>
> Having previously been an in-house developer we always spent what
> needed to be spent.
> That was true in the $25 billion co's I worked for and in the small 3
> person start ups.
> If it helps us do business better, makes our product better, etc we
> bought it.

Exactly my point - you as the developer were not exposed to the other  
business expenses involved.  Most companies tend to - as you say -  
spend what needed to be spent when looking at captive development -  
the ROI is directly related to the expected improvement in  
productivity.  This same model doesn't work for a development project  
aimed at an external, customer driven revenue model.

> Maybe I've lucked out and worked in companies that realized this is
> how they made money and would spend that to earn bigger revenue in
> the long run

Again, an example of captive development mentality versus for revenue  
development mentality - internal productivity versus external  
customer revenue.

Tim
--
Tim Jones
[EMAIL PROTECTED]

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