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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: Reginald Middleton who wrote (3249)11/20/1996 7:18:00 PM
From: Mark Finger   of 24154
 
The key is that you either bought it from a store, or direct from Microsoft (actually you probably bought it from some telesales group contracted by Microsoft if you did this).

If the store, they probably paid a Microsoft about $65-70, and the rest is the stores for expenses and profit. I am basing this on the fact that so many stores carried it at upper $80's last year. Of the $34 you mention, probably $12-15 is what you paid since you did not do enough research. For stores, estimate that the store (large chains) or distributers (wholesalers) pay about 45-50% of list price to the publisher (Microsoft). I believe that list is arount $150 for Win95.

When OEM's like Gateway, Compaq, ... get it, they pay for 1 master disk and one set of documentation in electronic form. They must bear all production costs themselves (That is why Microsoft has such high operating margins, because a major part of their sales are royalties like this).
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