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The 1300% markup would only be true if someone were to only buy one copy. The entire reason for the $300 fee is to (emphatically) discourage this. Nearly all manufacturers which offer custom versions of their products charge a high setup fee which gets absorbed when the desired number of copies is purchased. For example, I can have special pens made with my logo on them. The setup fee is $500. If I buy 1 pen, the cost is $501, but if I buy a large number then the price per pen is very low, even including the setup fee.
Hey, I didn't invent this stuff -- it's extremely common. Companies asked for it, with the promise of many copies, so we did it. It's a one-time purchase, with the copies installed on several thousand computers in a major corporation. Once installed, their MIS department has no interest in spending any more time re-installing updates, so I don't plan any.
That's the scenario that's currently in place. If other companies want to distribute copies with their logo as advertisements, and are willing to buy at the distributer level, then we might negotiate a different deal, perhaps cutting a batch of CDs for them. Anyway, all that is in the hands of the sales department.
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