On 10/24/06, Dieter <[EMAIL PROTECTED]> wrote:
> A: Raw parts cost
> B: Engineering costs (design, testing, etc.)
> C: Other handling costs (overhead, packaging, etc.)
> D: Failure rate buffer (bad boards, warranty returns, etc.)
> E: Maximum discount
> F: Manufacturer profit
> G: Wholesaler profit
> H: Retailer profit
> What I want to figure out here is (a) what other costs needs to be
> accounted for, and (b) how the factors should relate to each other
> mathematically.
Does 'A' include board stuffing and soldering? Testing?
What do you mean by 'stuffing'? Anyhow, yes to soldering. A is the
cost of parts and assembly. It may indeed include testing.
Awhile back you were unhappy with the idea of having the board assembly
company also do the testing, fearing that bad boards would slip though.
Yet that would be the most efficient method. One set of people to train,
no shipping if rework is needed, the ability to shut the line down if a
problem develops, etc. The trick is to find a board assembly company that
provides high quality work at a reasonable price.
Right. And at this point, we'll probably do that. This depends on
volumes, of course.
Add:
I: shipping (which can get involved, internationally)
I was trying to ignore that one, where shipping is tacked on at the
end, almost as though it doesn't exist until it becomes a line-item on
your invoice. Retailers often include shipping costs, but they have
fancy deals with the couriers.
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