[jdironman]

I think everyone has 3 numbers. A number that they will not go below, a number that two parties can agree on for a transaction, and a number which they would be extremely happy with (with no upper limit obviously). No different than negotiating a salary / contract which is what it is. I think when someone designs something with the intent to sell it however, that cost of research and development gets baked into the expected returns on the volume of sales. Its like an artist who sells originals versus an artist who sells copies of artwork, if that makes sense.