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Date:      Thu, 1 Feb 1996 10:39:50 -0500
From:      dennis@etinc.com (dennis)
To:        Michael Smith <msmith@atrad.adelaide.edu.au>
Cc:        hackers@freebsd.org
Subject:   Re: Watchdog timers (was: Re: Multi-Port Async Cards)
Message-ID:  <199602011539.KAA19544@etinc.com>

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>dennis stands accused of saying:
>> >Depending on what parts were required, I'd guess at ~$60 or so (assembled).
>> >(My guess is a GAL and an 8254 would be the order of the day).
>> >
>> >> Joe Greco - Systems Administrator			      jgreco@ns.sol.net
>>
>> Ours are $139 Q5....figure out the cost recovery and you'd have to
>> need a hundred to break even......I dont even market them 'cause
>> theres no margin at that price.
>
>Either you hand-assemble them yourself and have a high opinion of your
>time's value, or your fab agency is ripping you.  The card should be the
>length of an 8-bit slot and about an inch high ($20 in low quantities),
>it should contain about $10 in parts (and here I admit that I don't know
>how fancy your card's design is), and cost about $30 to load and test
>(presuming that you you allow ~10 mins to load and another 10 to test, which
>is generous.)
>
>At $140, that's ~$80 for margin and overheads, which is a reasonable price
>depending on how many you move.  Just don't cry poor about it, ok? 8)

I'm not going to get into an production argument with the great business minds
on this list! Your analysis illustrates why 80% of new businesses fail in
the first
year......your understand of the costs of acquisition, inventory, marketing,
general 
admin, warranties and sales is quite amazing! Plus you have to weigh the time
and resources against that which could be spend on much higher margin products.
Thanks for straightening me out!

Dennis
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