Under what circumstances might a company justifiably charge a much higher price for a software system than the software cost estimate plus a reasonable profit margin? Circumstances where a high price might be charged: 1. Where a customer expects the developer to take on a considerable amount of project risk. 2. Where the customer has special requirements e.g. for very rapid delivery. 3. When the work is not central to the companies business and so diverts people from other more business-focused activities. The high price is intended to compensate for this. 4. When the customer has no alternative! Think about the ethics of excessive pricing in this situation.