Re: Future: 0603 versus 0402 parts
- From: John Larkin <jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx>
- Date: Sun, 01 Apr 2007 09:28:52 -0700
On Sun, 01 Apr 2007 00:10:44 -0700, MassiveProng
<MassiveProng@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote:
On Sat, 31 Mar 2007 20:06:05 -0800, John Larkin
<jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> Gave us:
On Sat, 31 Mar 2007 13:43:31 -0700, MassiveProng
<MassiveProng@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote:
On Sat, 31 Mar 2007 13:22:12 -0700, John Larkin
<jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> Gave us:
very complex products need more control.
What I saw of the PCB image you posted was NOT a complex ASSEMBLY.
It doesn't matter how complex the circuit is.
We have classified, conduction cooled circuits contract manufactured
and they are far more complex and lower production run counts than
yours are.
I don't sell complexity, I sell functionality. Given that a customer
will pay X dollars for a function, it's in my interest to make the
gadget as simple and as cheap as I can, and pocket the difference.
What's your company's average annual sales per employee?
About 304k.
That's a pretty good number. Nowadays, anything below, say, 150 has to
be a sweatshop. Some companies, like Apple, run over a million.
That's over 1500 employees though, and we are over 50% mil, whereas
most companies fall in at under twenty.
We have deliberately chosen to keep our company small, charge a lot
for our products, provide the best performance and service we can, and
have really good pay and benefits and working conditions. If it never
gets bigger, and never hits 20 employees, that's fine with us.
The classic Economics 101 curve of profit as a function of price is an
inverted parabola. Charge too little, and you get lots of sales but no
profit. Charge too much, and per-unit profit is great but you only
sell a few. Studies have shown that the majority of businesses work
below the optimum peak, worried about losing customers by pricing too
high. We're definitely on the other side of the peak: we lose custmers
because our prices are generally high. That's really a quality-of-life
issue, which is easier for a small, closely-held company to select. It
also helps to do niche products that essentially have no competition
again trading away growth potential.
John
.
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