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Posted by Citizen Bob on 11/03/06 13:12
On 2 Nov 2006 20:16:18 -0800, "traffik33" <traffik33@yahoo.com> wrote:
>Even assuming free labor, its still hard to believe they can
>manufacture the parts, assemble into a complete player and make a profit at $30.
Economy of scale kicks in when you make a minimum production run of
10,000 units. I used to work at an electronics manufacturer as a
product developer and I know how cheap you can get electronic parts in
large volumes. What costs you $1 in a package at RackShack can be
purchased for a penny in quantity 10,000.
>Still hard to believe you can buy a player for the same
>price you spend on 2 or 3 DVDs.
You are not aware of the incredible markups that occur from parts
costs and burdened labor costs.
We sold an RTU for SCADA systems for $5,000 in one lot, and it costs
us less than $700 to make it, including the burden (overhead charge).
Parts and labor without burden were about $500. So your $30 player
cost maybe $3 to make.
--
"First and last, it's a question of money. Those men who own the earth
make the laws to protect what they have. They fix up a sort of fence or
pen around what they have, and they fix the law so the fellow on the
outside cannot get in. The laws are really organized for the protection of
the men who rule the world. They were never organized or enforced to do
justice. We have no system for doing justice, not the slightest in the world."
--Clarence Darrow
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