RE: How to Calculate Costs of Distributing Online Documentation

["Diane Evans" <dianee -at- lockstream -dot- com>]

Caroly asks, "...is there a standard way of calculating these costs?"

The standard way of calculating any price is:

1.  What did it cost to make it?
2.  What does it cost to distribute?
3.  How many will we sell?
3.  What will the market bear?

Question 4 is most important if you are a monopoly like the cable company or
Microsoft.  For the rest of us, the answers to the first three questions are
most important.

At LockStream, we digitally encrypt and sell media files.  Our comic books
sell for $1.99 each, our music files sell for $1.50 to $2.99, our film
scripts go for $7, and our new Penthouse Player from www.penthouse.com is
free!

Diane Evans
Technical Writer
Lockstream





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