Valentine group buy...
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Joined: Jan 2004
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V1 Group buy:
Manufacturers produce in lots, most of the time this is determined by the MOQ (Minimum order qty) of key components, in the V1's case probably the PCBs, MCU's & key microwave components, etc. Mike must meet the MOQ requirements of the vendors in order to produce a production lot at his target internal cost which will net the profit in his business model. As a PCBA manufacturer myself, I know of no MCU (Microprocessor) manufacturer (for example) with an MOQ under 5K per lot (usually its 25K/lot), especially if there is a mask involved (program burned into chip by MCU manufacturer instead of final assy point). In other words, unless we could at least consume an entire production lot with a group buy (5K +), Mike's costs will not be any lower than if he sells them one at a time to his regular customer base.
My 0.02 cents
Bond
Manufacturers produce in lots, most of the time this is determined by the MOQ (Minimum order qty) of key components, in the V1's case probably the PCBs, MCU's & key microwave components, etc. Mike must meet the MOQ requirements of the vendors in order to produce a production lot at his target internal cost which will net the profit in his business model. As a PCBA manufacturer myself, I know of no MCU (Microprocessor) manufacturer (for example) with an MOQ under 5K per lot (usually its 25K/lot), especially if there is a mask involved (program burned into chip by MCU manufacturer instead of final assy point). In other words, unless we could at least consume an entire production lot with a group buy (5K +), Mike's costs will not be any lower than if he sells them one at a time to his regular customer base.
My 0.02 cents
Bond
Last edited by bond; Jan 3, 2004 at 10:37 PM.
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