[vorbis] Re: OGG portable (iRiver iHP-120)

Paul E public at ellisfoundation.com
Wed Oct 22 12:27:03 PDT 2003



Paul E wrote:

> Think about this.  If they are selling the product to stores for $250 
> cost becomes greater.  It goes from ~1.25% to 2% of the cost.  There 
> is something else though.  How much does it cost to produce?  If it 
> costs them $180 for each unit (development, advertising, production, 
> etc)  Then $5 is 7.14.  And that is with conservative numbers.  It 
> could cost much more to sell due to limited quantities.  Many 
> companies only make 5% profits after all expenses are paid so that 2% 
> really turns into 40% change in net profits.

The 7.14 is supposed to be 7.14% and "It could cost much more to sell 
due..." should be "It could cost much more to make due...".  I should 
really check my head and make sure I turned it on before I type.

Paul

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