Subject: Re: street performer protocol
From: "Jonathan S. Shapiro" <shap@eros-os.org>
Date: Sat, 13 May 2000 08:39:03 -0400

> What about the customer who is generally as informed about software
> development costs are you are?  How do you convince him he's getting a
> good deal?

That's easy. You point out that it would take them X dollars to write the
software themselves, that this would take Y developers who are hard to hire
in the current market, that it would take Z months (where Z is always longer
than you will take because of hiring and startup and familiarization delays)
to build, and that during those Z months all of the things that depend on
the software are delayed.

That is, you emphasize the time value of money. The real price is the
*higher* of (a) the value of the software to the customer, and (b) the cost
to the customer of not having it.

Sometimes (b) is much higher, mostly because the customer doesn't tend to
consider slippage of other efforts when deciding the value a piece of
software has to them. I.e. their economic model is flawed.


Jonathan