[EuroPython] questions, questions, ...

Tom Deprez Tom Deprez" <tom@aragne.com
Thu, 2 May 2002 12:49:34 +0200


Hi Laura,

Thanks for this information! With this I know what to do. Now I at least
have something to use when other ask for prices etc.
I always thought that these price settings were 'secret', but I see from
your explanation that it isn't. Really helpfull.

Thanks again,
Tom.

> > > > 1) Pearson Education Benelux isn't able to attend the conference,
but
> > they
> > > > would like to produce a little brochure which can be handed out at
the
> > > > conference concerning their open source titles.
> > >
> > > Clearly they should pay for this service.
> >
> > Ok, sure, that's normal I think, but does somebody has experience on the
> > amount of fee we can ask for these kind of things?
>
> Sure.  Here is how you calculate it, 2 ways:
>
> You have to fill this in with the real numbers, because I don't
> know what the real numbers are.
>
> We promise 200 attendees.  Each attendee is worth about .50 Euro to
> market to.  Therefore you charge them 100 Euros.  (The .50 is a good
> number. The 200 I do not know).
>
> However, I think that this is overcharging.  Here is why, second
> way to calculate this:
>
> Average cost of book they sell is: 35.00 Euros. (I made that number up)
> Expected number of Sales from an attendence of 200 people: 20 (I made that
one
> up as well).  Somebody said that their profit was 10% -- they
> advertise selling 10% over cost.  This is before they figure in their
> expenses.  So - 3.5 times 20 = 70 Euros -- and they have to get charges
> out of that.
>
> All these figures you should be able to get from their marketing
department.
>
> Since you did not know how to calculate this, then you probably do not
> know that this is no big secret.  When you are negotiating a price
> with them, give them this as a back of the envelope calculation, and
> then fill in their real numbers.  This is a completely open
> transaction.  Nobody wins if anybody hides anything, and it is in
> nobody's interest to be dishonest here.  This is a straight business
> to business trade, cash for access, with no complications and no
> strings.  We do it all the time.  You come with this sort of a
> calculation -- not the number, give them the 'and how I calculated it'
> they will know to file you under 'business' and not under
> 'shopper/amateur'.  If they think you are an amateur then they will
> have the option of using the other set of playing rules in calculating
> such things, which is 'get as much as I can while paying as little as
> I can, no holds barred since they will not know if I am being
> reasonable or not'.  I am not accusing them of that, just it is the
> eternally availabel option.
>
> And I have likely forgot some small thing, for instance I assume that
> taxes are not to be a problem, but if they are, then that needs to be
> factored in as well.
>
> Good luck,
> Laura
>
> ps -- 700 Euros for a booth seems mighty steep to me.  I don't see 700
>    Euros worth of Customers coming over to see my stuff.  This is what
>    you get when you build a by-hackers-for-hackers conference -- the
>    cost of the booth must go down because hackers are not ideal segement
>    of the market to reach, unless, of course, you are selling hacking
tools.
>
>
>
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