Electronic distribution of software across the Internet may be the most economical and efficient way to get your software to market, however you may still need or want to consider producing your software on hard media such as CD ROM or diskette. Be will make heavy use of electronic distribution methods, but we'll also provide a shrink wrapped box that contains a CD and printed documentation to those that wish to make such a purchase.

Below are some areas that we considered and that were suggested to us when we started approaching media production vendors.

Quantity

Most of the production processes involve one time set up costs. Generally, the higher the quantity of media produced, the lower the per unit cost. You end up spreading the one time set up costs across more copies of your software.

Software Revisions

Since you'll be striving for quantity in your production runs, you'll want to minimize the risk of ending up with obsolete copies of your software. Have a software revision plan that allows you to sell through your existing inventory as best you can. If you can freeze revisions of manuals and boxes for longer periods of time, you'll save money since you limit your changes to just the accompanying software.

Optimize Production Runs

Larger companies tend to manufacture to cover the next 30-45 days of inventory requirements. Smaller companies may find it advantageous to produce 60-75 days. If your software will remain static for three months or more, you can accommodate larger production runs. One thing to keep in mind is that you'll be tying up your cash in inventory for a corresponding amount of time and you should take into account faster or slower sell rates.

Guideline for Physical Product

Here are some guidelines suggested to us from third party production vendors:

• Design documentation to the 7x9 format for best pricing and sizing, except for demand print, which is best suited for 8.5x11.
• Designs using 4 color process are more economical than 6 color or even 4 PMS colors.
• Design your manual and packaging so they aren't revision specific.
• Use labels on printed material to call out versions so if you do a revision, you only need to replace a label.
• Design your manuals for perfect/layflat binding, both styles with high throughput on the binding line.
• Always submit artwork files in Postscript and make sure you include any special fonts you have used in your design.

Design to your Channel

Be probably won't chase after the retail channel too hard, but we will take direct orders over the web. If you have a similar strategy, you can design your manuals and packaging with some cost savings in mind. Web ordered products don't need the flashy, eye catching packaging that typical shared shelf retail box does. You won't need high end colors or graphics.

Production Numbers

2500 or more: At this quantity, manufacturing set up costs are not over-burdening your per unit prices. Design can be flexible at these quantities usually involving a 4-6 color package and 1, 2, or 4 color text manuals.

1000-2500: At these quantities, offset print is still your best option, but you might consider strategies such as creating a 4 color box design or manual cover and then using 1 color labels to put title and version specifics on manuals and boxes. You could order a larger number of manuals and boxes and reorder CDs as needed.

Below 1000: Demand print becomes your best option at this quantity. Full color packaging may not be a realistic goal. Try to stick to one color manuals to keep per unit costs from suddenly rising. Although per unit prices do increase at this level, you eliminate any obsolescence risks.