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Thursday, April 07, 2011 11:33:23 AM
Having worked at a wholesaler in software, I know the costing structure quite well. Moreover, the costing structure of software ressembles perfectly the one at BIEL.
Once the development of software is done, the cost of actually physically producing a title of software is about a dollar (and I've produced some sampler software for half a dollar by the way)
If the cost at Biel is 4$/unit there is some serious room for improvement.
Additionnal personnel at the level of BIEL is very limited as the wholesaler/Distributor does all the physical work that requires manpower. Moreover, costs of marketing are factored in at the level of the distributor. So either, the distributor takes those costs as per my calculation, or Biel takes this up, but then the marging of the distributor is likewise reduced.
So your challenge is met and the companies you want to bet your lifesavings on are software company. Unfortunately for you, these softare companies have huge development costs designing the (new)software, which BIEL doens't have (anymore) at this stage.
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