MOTM

I don't agree with Mike on this one.
In order to make the prepopulated option happen, I would expect there
would be some minimum order quantities required and minimum reorder
quantities as well.
As we have seen with the 450 and 485 kits Paul often can barely sell
enough to hit the breakeven point.  
IMHO what is needed is a way for Paul to be able to realize a positive
return on selling a fewer number of a given module type.  Everyone is
not going to want an interpolating scanner for instance. (maybe I'm
wrong?)
So the question becomes as Paul's line of modules expands into more
exotic realms, how can he make a profit if he only sells 20 or 30
modules of a given type?
Let's say Paul orders 100 panels and PCBs for the 850.  He gets a good
price and makes a profit on those 100 kits.  Now let's say he gets an
order for the 101st kit.  How can he make money on that kit if he has to
buy 100 more PCBs and panels?  He may never sell that many.  If he only
gets 30 PCBs and panels, then maybe he's losing money because the unit
cost is higher.
I'm sure you realize how much a 1 up panel costs, and a 1 up PCB is not
cheap either.  If a way could be found to make panels and PCBs after an
order is received the cost of all that specialized inventory could be
reduced.  Maybe it's possible, I just don't know.
But as a businessman, I certainly recognize the problem.
I would only agree on prestuffed boards being a viable option for those
kits that are just too hard to assemble, like the 600 and 650, mainly
because of SMDs.  Otherwise it's just more specialized inventory sitting
on the shelf waiting for an order.
  



-----Original Message-----
From: Mike Marsh [mailto:michaelmarsh@...] 
Sent: Friday, October 15, 2004 3:06 PM
To: motm@yahoogroups.com
Subject: [motm] Re: **MAJOR ANNOUNCEMENT PLEASE READ**



That's cool, Paul!  Faster service and quicker turn-around on new 
modules sounds like a winner to me.

Maybe you should also consider pre-poulated boards, too.  Wave-
soldered and on the shelf ready to go.  Then we builders would just 
wire it up and go.  I know this is sacriledge to some, but I've 
built enough kits now, and want to get the things into the rig as 
quickly as possible.  ANd still have a little bit of me in module, 
so to speak.

So you would have three levels: full kits (cheapest), prepop kits 
(cheaper), and fully assembled (most expensive).

Waddya think?

Mike 

--- In motm@yahoogroups.com, "Paul Schreiber" <synth1@a...> wrote:
> Starting in mid-Nov, I am going to out-source most of the MOTM 
kitting AND 
> shipping to a third party. This 3rd party currently provides the 
solder and the 
> resistor/capacitor bags in the kits right now.
> 
> The purpose of this is to speed delivery of kits, both in the 
existing backlog 
> and in the future. But more importantly, it frees up 90% of 
my 'MOTM time'! I 
> can concentrate on what I do best (R&D) and off-load what I suck 
at (shipping, 
> buying parts, etc).
> 
> The exact logistics have to be worked out. But basically, you will 
still order 
> off the website like before, your credit card will be billed as 
before, but your 
> order may arrive from 2 different locations (I'll be like 
Amazon.com).
> 
> I will still handle assembled modules and repair.
> 
> Now, I know what you are thinking.....will this raise the price 
again??!?
> 
> For the time being, no. I will absorb the loss in profit in order 
to ship out 
> the backlog and allow time to finish the '650, '450 and '600 
modules (plus the 
> VC Pulse Divider). Newer designs will be slightly more than "what 
they would 
> have been", and once the backlog is flushed out (and the existing 
parts 
> inventory), there is a *possibility that some* modules may 
increase as the 3rd 
> party now has to face the burden of restocking (I've already 
bought about 
> $43,000 of parts the last 3 months).
> 
> So, in a nutshell:
> 
> a) don't be surprised if you get an order in several boxes 
originating from 2 
> locations
> b) you should not be able to see any difference whatsoever in the 
kits, except 
> the 3rd party MAY elect to use a CDROM for the manuals
> c) the goal is to have <2 week delivery of ANY MOTM kit starting 
Feb. 1st. It 
> will take until then to flush the backlog.
> 
> More details as they become available.
> 
> Paul S.
> I wonder if a pool table could fit up here??






 
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