Comment by thomascountz
11 hours ago
I have qualms and disagreements with the whole "software factory" concept, but your math doesn't help the argument. The cost of human labor is more than salary—or even hourly rate, if you're thinking of paying a contractor.
I'm comparing cost per $ of revenue, not labor. And my math is for a scenario assuming a company is running this type of software factory year-round.
Now one could say that the same feature that a customer would've paid $1M for was done in $4k instead of $160k. But buyers are going to demand much more as they see this kind of pace. You'd be able to charge maybe only $10k, because your opportunity cost goes down since you only spent 2 days; you can't keep the same margins that you needed to in order to justify spending 9 months on it. I think it gets very complicated and we're yet to see these economic effects.