Business 101 (or don't be a small-town dick)
"This is Chico*..."
That's the pat response to any software developer when they ask for more money ("more" meaning something still quite south of industry standard).
The statement is meant to indicate that Chico, being a small town, can only support a small-town salary. After all, everything in a small town costs less. Right?
Rent is lower, (but not lower by half, while salaries are often half industry standard or less). Things like groceries, food out, water and electricity, a coffee at Starbucks (or the local coffee shop), movie tickets, a book at Barnes & Noble, pretty much everything at Walmart, the price of gasoline, etc. costs exactly what you'd pay in someplace like the Bay Area. In other words, while your commute will likely be shorter and rent or mortgage payments may be slightly lower, the cost of living is substantially the same.
Here's the catch though (and it's good to note if you don't want to be a small-town management dick): none of the companies that use that excuse have their revenues tied to the local economy.
They're all internet companies, whose revenues derive from everywhere but here. They'd have the same customer/sales base if they were located in say, the Bay Area. Except their cost of doing business would be higher there (along with slightly lower housing costs in the small town, the cost of leasing space for your business is also lower).
So that means their profit margin is higher, which should mean "this is Chico*..." indicates that the company has more money to spend on frivolous things like salaries.
You should actually be paid more than industry standard if you're a "small-town" developer working for an established web development company serving a global market.
*replace with any small town with a fledgling IT industry.
