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| subject: | PnP Eyesight?? |
following up a message from Roy J. Tellason to Leonard Erickson: RJT> Leonard Erickson wrote in a message to Roy J. Tellason: TW> Yuo are not looking them. first the Very Limited Production no TW> matter whjat you think Raises the Price of an Item Significantly. TW> FAR more than one would think actualy. Check some time in the TW> Industrial Market and see what the difference is in pricing between TW> lots of 100 and 100,000 RJT> I've noticed that sort of thing before, but have never been too sure RJT> about how much that was a factor of distribution and how much it was a RJT> matter of manufacture. When it comes to distribution, it costs a RJT> certain amount to process an order, no matter what, so the more of RJT> whatever you order the less per item it costs. Packaging enters into RJT> it too, with the prices per small quantity being understandably more RJT> expensive than for large quantities, or "bulk". But cost to RJT> manufacture? I'm not so sure. LE> You have to set up "tooling". Circuit board layouts, injection LE> molds for plastic cases and parts (at around $10k each!!), etc. The LE> cost of those has to be spread over the expected production run. RJT> That's why I keep seeing cheaper and cheaper construction in stuff RJT> that's commercial, and it seems to get further and further from RJT> anything I'd ever build or assemble myself... LE> For a run of of 100, that injection molded case is going to add LE> $100 *per unit* to the cost. For a run of 10,000 it adds *1* LE> dollar/unit. (actually, closer to 2, since there's a limit to home LE> many times you can use the mold). RJT> Ain't it nifty that computer stuff has gotten as cheap as it has? RJT> :-) Been thinking about this stuff again, and how technology has pushed all sorts of things forward, especially in recent years... Do you see this as changing, any? It would seem to me that technology ought to be able to push this "barrier" back some, at the very least. ---* Origin: TANSTAAFL BBS 717-838-8539 (1:270/615) SEEN-BY: 633/267 270 @PATH: 270/615 150/220 379/1 106/1 2000 633/267 |
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