[ncdnhc-discuss] Re: Mission creep and consumer protection

[Dave Crocker]

At 12:03 PM 2/15/2002 +0900, Adam Peake wrote:
>Dave, what would you estimate as a reasonable wholesale price?

A number of us with operations and business planning experience did an 
extensive discussion about basic costs.

This excludes add-ons like marketing or -- unfortunately highly relevant to 
the current domain name world -- legal fees.

Our belief is that the core costs should be US$0.50 - US$2.00.

Probably the best way to think of that amount is as being equivalent to R&D 
costs for a product.  That usually is 15-25% of the total price, in a 
commercial market.

Note that this makes the current US$5-6 range justifiable, though it also 
suggests room for (eventual) price reductions.

d/

----------
Dave Crocker  <mailto:dcrocker at brandenburg.com>
Brandenburg InternetWorking  <http://www.brandenburg.com>
tel +1.408.246.8253;  fax +1.408.273.6464