Does he not know the average salaries of developers in your area? Any recruiter will corroborate that. Or does he think you should hire developers from lower c

Does he not know the average salaries of developers in your area? Any recruiter will corroborate that. Or does he think you should hire developers from lower cost of living areas? Or is he surprised that labor is a high percentage of total expenses? In that case, you need only explain why the other expenses are so cheap (hosting, etc. isn't expensive with a small customer base). canteburry may also have a point, a lot of people don't hire at level. Or they hire hard core computer scientists when application developers would be better.