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March 7, 2006
News - Pit of Despair
about 3 years ago
IMO your best bet (especially in the lowish quantity commercial or prosumer markets) is to:
1) Price your widget right, meaning properly account for all costs and the amount of profit you need to make to consider your endeavor successful. Don’t forget things like test, packaging, shipping parts, taxes, business fees, etc. If what you’re selling really doesn’t exist, you can probably price it higher than you think.
2) Find a reputable contract manufacturer to work with on manufacturing, testing, and potentially even packaging and shipping your widget.
3) Have reserve funding to fill gaps of time by expediting if necessary to deliver products and create happy customers.
4) Do everything you can to test well and minimize support, but don’t forget about support costs in your pricing scheme.
As someone that has done this on a smallish scale with descent success (I can ship 50-100 units per month, all I have to invest is 1-2 minutes per unit for test and packaging at this point). I build to expected demand, and balance cost with price such that I can build in batches that minimize my risk and maximize profits (I find this to be around 200-300 units for my cost/price point (around $50 unit cost for parts+assembly+test+package, $100 price). I put my first profits back into the business, so that I’m now playing with ‘business money’ and no longer investing personally. I’ll ride the train as long as it lasts and then come up with another widget to sell when it starts slowing down.
about 5 years ago
It would be awesome if the next version included inputs for two quadrature encoders, to allow for closed loop speed control and position reporting.
No public wish lists :(
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