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I’m part of a team that makes low volume high priced electronics. Component costs don’t contribute that much: the price difference between qty 1 and qty 1k is u

I’m part of a team that makes low volume high priced electronics. Component costs don’t contribute that much: the price difference between qty 1 and qty 1k is usually much larger than between qty 1k and anything more. The things I see contributing to the cost of low quantity hardware are: 1. The need to amortize development costs over fewer units. This is not just software and hardware engineers, but office space, lab equipment, mechanical engineering for enclosures, prototype builds, emissions and compliance testing (FCC, CE, UL, TÜV, depending device and on target market) 2. Higher manufacturing costs. Low cost overseas manufacturing has fairly high fixed costs, especially if you want to maintain high quality.

IAmPym 5y ago
Component cost increases due to the pandemic and supply chain issues easily increased the price by 25-30% in our industry due to several factors outside of the norm, like some single source parts most companies relied on with factory problems, fires, etc In my experience over the past 6-12 months this is significant
- repiret 5y ago
  Oh component costs have gone up for sure the last year or so. But I'm saying the per-unit component costs wouldn't be that different between making 1,000 per year or 10,000 per month. [1] [1]: Except that in the current supply chain environment, it would change the "should we pay scalper prices for that component or should we spend the fixed costs to redesign with a different, more available component" calculus.
  - IAmPym 5y ago
    Your making the assumption that one can buy 1000 of any part, which is likely incorrect These ain’t normal times
    - krageon 5y ago
      Are you lecturing someone who does this for a living on the environment of their specific professional setting? Why do you assume you know better?
      - IAmPym 5y ago
        As above, not only do I do this for a living but in the specific sub-industry this product is made for, which means in this particular case I know quite a bit. Very seldom do I think I know better but in this case I have industry specific knowledge
    - IAmPym 5y ago
      Apparently I can't edit this now and correct my grammar mistake... this is going to haunt me.

IAmPym 5y ago

Component cost increases due to the pandemic and supply chain issues easily increased the price by 25-30% in our industry due to several factors outside of the norm, like some single source parts most companies relied on with factory problems, fires, etc In my experience over the past 6-12 months this is significant

repiret 5y ago
Oh component costs have gone up for sure the last year or so. But I'm saying the per-unit component costs wouldn't be that different between making 1,000 per year or 10,000 per month. [1] [1]: Except that in the current supply chain environment, it would change the "should we pay scalper prices for that component or should we spend the fixed costs to redesign with a different, more available component" calculus.
- IAmPym 5y ago
  Your making the assumption that one can buy 1000 of any part, which is likely incorrect These ain’t normal times
  - krageon 5y ago
    Are you lecturing someone who does this for a living on the environment of their specific professional setting? Why do you assume you know better?
    - IAmPym 5y ago
      As above, not only do I do this for a living but in the specific sub-industry this product is made for, which means in this particular case I know quite a bit. Very seldom do I think I know better but in this case I have industry specific knowledge
  - IAmPym 5y ago
    Apparently I can't edit this now and correct my grammar mistake... this is going to haunt me.