want software ideas

William R. Pearson wrp at dayhoff.med.Virginia.EDU
Sun Feb 27 12:10:17 EST 1994


In article <2kp61f$ln0 at ysics.physics.sunysb.edu>,
 <mhollowa at epo.som.sunysb.edu> wrote:
>
>... It 
>wouldn't even have to be the mega-package they're selling for > $1000.  I 
>suspect that for every lab that's going to spend $1000 on a multifunction 
>package there will be more than 10 labs that will spend $100 on a part of 
>that package, or on something that hasn't cost the programer as much to 
>produce.

Look at the numbers.  The NIH gives out about 25,000 grants total
every year.  I doubt whether 20% of those are to molecular biologists,
but lets assume that's the number.  That's 5000 potential US customers
- max - at market saturation (which will never happen).  Consider the
costs for programmers, secretary, advertising, possible sales force,
etc and the maximum $500,000 that you would get from your $100 package
disappears very quickly.  And then, what about year 2?

	The only sophisticated software products on the market that
cost < $500 sell in the 1,000,000's of units.  Almost any product that
sells in the 1,000's of units, requires substantial support and
sophisticated programming sells for > $10,000.

Bill Pearson




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