In Silicon Valley, why programmers can't demand >250K per annum as there is a huge demand?
There are 100,000 software developers jobs open in Bay area alone as per linkedin. If there's such a high demand, why programmers don't quote basic pay of more than 300k per annum?
Because they can't collectively afford 100,000 people at 300k per year. Demand is not the only driver to what you pay for something. Companies will put off business initiatives if they can't find the right developers at the right price. It would be bad business sense to hire people at too high a rate just to get a few more projects completed faster.
From a business perspective it's very easy, the employee needs to make more profit than he costs, otherwise it's a bad investment. So in order to give a $300,000 salary, he needs to increase profit probably more than $400,000
Ron McCranie
UX, Front End Dev, E-commerce specialization
Because they can't collectively afford 100,000 people at 300k per year. Demand is not the only driver to what you pay for something. Companies will put off business initiatives if they can't find the right developers at the right price. It would be bad business sense to hire people at too high a rate just to get a few more projects completed faster.