> So what is the module count you must ship before you can concentrate on
MOTM
> full time? We need some of those basics like Mixer and Multiples.
>
I do get this question from time-to-time, and it's a fair one.
The problem is that MOTM will probably never be "full time" because the
pricing of the
modules has too low of a profit margin. I would have to sell about $300,000
worth per year
to match my present salary, NOT INCLUDING medical/401K, and CERTAINLY not
my "golden handcuffs" (ie stock options, vested over the next 3 years) which
if the market
trends stay consistant, THEN I could possibly do this full time.
MOTM has a fixed overhead: my phone bills are about $3500/yr, the credit
card fees are about
$7000/yr, and the website is about $1200/yr. So, just to cover those costs,
that translates to
about 250 modules!! Oh, and I spent $13,732 on postage last year (mostly
covered.....mostly!).
Just as a point of contrast: the DSP emulators I sell are $3500ea with $2600
of that profit!!
So 1 DSP sold = about 56 modules, profit-wise. So please realize, as I grit
my teeth every night at
1am after 15 CAD hours, "this is a labor of love...."
But really, it's not "time" but in order to speed things up, I need several
employees. NOW there
is a money sink! But, I can speed up some areas, and plan to do so. The main
one will be over
the next few months for assembled modules: I plan to go to wave solder in
April. That should
speed up processing assembled orders 2-3X.
I guess my business model is my limiting factor. BUT...I don't charge $500
for VCOs and $1100
for a small case/power supply, either.
Paul S.