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Originally Posted by Rob Lister
The per-copy costs are trivial and, more to the point, already sunk. But it doesn't matter. Even if the circumstances exist that make it $2 per copy (royalty agreements, for example) that doesn't mean people will buy it for $2 a copy.
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But you'd be a fool to try to sell it at under $2 per copy if your up-front costs exceed that.
Quote:
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I remember years ago reading an interview with the CEO of Osborn Computers. The reporter was asking him about corporate loses. The CEO explained that even though they were selling the Osborn machines at below cost, they intended to make up for it with volume. They filed bankruptcy soon thereafter.
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Apocryphal story alert!