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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Bob Trocchi who wrote (1404)	7/13/1998 1:16:00 PM
From: John Howell	Respond to of 4634

Howdy Bob, The real plus for a software only business is when they see revenue start to jump past the 150K range (or thereabouts). Typically, every penny in revenue over salary and overhead (overhead taking in R&D) is pure cream. Anyone running a "body shop" typically has a very low percentage of revenue coming from proprietary software sales (the kind where you keep all of the money). That makes the margins thin. Selling "bodies" is a business anyone can get into. If you start trying to charge more than 110K per body per year, someone will beat you out of the business. Looking at the difference in revenue between Keane and Oracle, I would much rather be running Oracle.