Msg: 4580 *Conference*

08-05-93 21:40:03

From: RICHARD HANSON

To : JAMES TOTH

Subj: REPLY TO MSG #4579 (THE GAME)

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Okay, that's a fair question.  The ROM version of TS-DOS and Sardine costs far
more to produce then the disk version of the same programs.  Afterall, a disk
cost about $0.38 to purchase--in quantities of 1000--and less then 3 minutes to
program.  The ROM, on the other hand, costs considerably more.  A ROM
duplication requires about 20 minutes to burn, requires testing, and placement
in a ROMBO--yet another item to purchase.  The total time involved in putting
together a ROM is about 35 to 45 minutes.  The cost of the ROM version--the
EPROM, the ROMBO, and the duplication time--is much greater then the disk; by
about $20.

It's not much to throw in a disk when someone buys a ROM.  I do it as a
convenience.  It's quite another matter to throw in a ROM.  However, your
question raises the issue of providing an upgrade path for disk users to ROM
use of TS-DOS and Sardine.  This is an important question that needs to be
resolved, fairly.

You need to know another fact: At the present, I've been quoting $35 (includes
packaging materials and postage - average $4+) to duplicate and return a ROM I
do not manufacture, i.e., InSol, MSPLN, SUPER, WRITE, etc.  So, I make around
$10 +/- on the deal.  This service may be considered "1st dollar."

Okay, those are the gross numbers--and I've made no mention to contribution
margin on disk vs. ROM products.  Armed with these facts, you tell me what
fould be fair to you and I--considering that this may be termed 2nd dollar,
i.e., I made some profit the first time you purchased the product, so that the
upgrade need not require the same margin.

So, I'm ready.  And thank you for your question.  It's about time... -Rick-