[ryguytilidie]

I could see criticizing the price, but the reason you guys are criticizing it for are ridiculous. If you buy a company for 125k and make 125k/year in revenue you dont break even, unless your expenses are insane or if you think the business can't last more than a year.

The person who would most likely buy this app is maybe a company that thinks they could bring the revenues up, integrate this into something theyre working on, and add value. Is it worth 125k? I don't know, but I imagine we will know soon.

[kylefox]

I guess my main point is that Sam seems to be setting the price based on what Cheddar is worth to him personally, rather than some kind of growth/potential calculation (or so I assume -- he doesn't go into how he arrived at the $125k price tag, aside from alluding to the number of hours he put into the project). That makes a harder sell, IMO. Buyers are going to look at how much potential Cheddar has as a business, not how many hours Sam put into it.

BTW I'm not suggesting this is the wrong way to sell it -- if it takes $125k for Sam to feel OK parting with Cheddar, that's totally valid.

[ryguytilidie]

Fair enough, I just objected to the idea that one needs to have revenues=value to "break even". Just the complete wrong way to think about it.

[tobiasbischoff]

I don't wanted to say that it should make 125k a year to make it valuable. But the ratio has to make sense. Just compare to the Sortfolio Sale: 120k rev/year sold for around $450k, makes far more sense. (http://37signals.com/svn/posts/2899-sortfolio-deserves-a-bet...)