> > time between when we place our order for 100 boards and when we get
> (...)
> > leaves us with a $60000 bill to pay before we have any revenue, and
> 
> that makes one card = 600 USD ?
> 
> > - The retail price is $1500, but the first 100 pre-orders will get a
> > $100 discount.  For deeper discounts, you can put in a request with
> > the OHF.  There are two discount levels, $1000 and $700 (depending on
> > your level of involvement in the OGP), but we are placing strict
> > limits on them.  (If we can get all 100 pre-orders, the deepest
> > discount will probably go down to $600.)
> 
> so that's a...
> 
> 900 USD profit margin...
> 
> or is there something I'm missing there ?

What we are missing is the demand curve.  The goal is to make enough profit
to be able to get an ASIC made and then make the OGC card.  IIRC the
estimate was something like US$2M.  So we have to sell a couple thousand
OGD cards.  Set the price higher and we don't have to sell as many cards,
but demand might go down faster than profit goes up.  Set the price lower
and demand goes up so you can sell more cards, but you *have* to sell more
cards to be able to build OGC.  No one knows how many cards would be sold
at various prices, so it is a guessing game.

OGD is expensive for a consumer product, but it isn't a consumer product,
it is a professional tool.  I've seen professional tools with much
higher profit margins than OGD.
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