How get a nice looking hardware (sorry if OT)?

[sarling]

Posted on March 06, 2009 at 21:41

How get a nice looking hardware (sorry if OT)?

[jj_it]

Posted on May 17, 2011 at 13:04

Hey Gang-

You're smart - there ''are'' CPAs & finance books - this is almost becoming ''finance 101!'' Suggest that we ''someway/somehow'' work STM32s into the posts before we ''irk'' STOne-32...

[sarling]

Posted on May 17, 2011 at 13:04

Quote:

Well, as an example a company I did work with sold 10-50K units (a bike computer), it was sold for $50 retail, was bought wholesale by a chain store for $20, the wholesaler pays $12 to the company, the company paid $5 to the Chinese manufacture, so the BOM has to very low. For newly released bike computers with new features, they could charge $80-100 retail, for older bare bones computers only $29 retail, with very little difference in parts cost (but lots of developement cost).

I would thik 1.6/1 ratio means very high volume (millions), cell phones, computers and such, or very high cost products, of course there are all sorts of business models that may work that I don't know about.

So a guideline ratio (sell price/BOM) for 100-1000 unit would be? I'm having a little difficulties following your reasoning. It was sold for $50, then a chain store buys them for $20, but pays $12?

/Mattias

[obtronix]

Posted on May 17, 2011 at 13:04

Quote:

That differs alot from my estimation, I had an idea that a defendable selling price/parts costs ratio would be around 1.6:1. But I am not the economically inclined. But there are several important factors. How much you charge for work and how man units you sell. What is your selling volume? I guess the more specialized a product is, the more you can charge without having too much impact on requests.

/Mattias

Well, as an example a company I did work with sold 10-50K units (a bike computer), it was sold for $50 retail, was bought wholesale by a chain store for $20, the wholesaler pays $12 to the company, the company paid $5 to the Chinese manufacture, so the BOM has to very low. For newly released bike computers with new features, they could charge $80-100 retail, for older bare bones computers only $29 retail, with very little difference in parts cost (but lots of developement cost).

I would thik 1.6/1 ratio means very high volume (millions), cell phones, computers and such, or very high cost products, of course there are all sorts of business models that may work that I don't know about.

[obtronix]

Posted on May 17, 2011 at 13:04

Quote:

So a guideline ratio (sell price/BOM) for 100-1000 unit would be?

/Mattias

You not supplying enough info to make a guess at that, is this your only product or service? is that per/year numbers? do you expect sales to increase, do you expect to make profit in replacements vs initial sales? (engine controls for cars cost about $30 to make, are sold very cheaply to auto makers, but a dealer will charge you $900 to replace it if yours breaks, so all profit is made in replacement sales)

Quote:

I'm having a little difficulties following your reasoning. It was sold for $50, then a chain store buys them for $20, but pays $12?

the wholesaler and chain store are different parties, wholesaler pays $12 then resells to chain store(wholesaler has contacts to multiple chain stores and ongoing supply contracts)

jj.sprague

granted but the topic is titled OT. if you know a forum that talks about such things I would be glad to move to it, but I know of none