> 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.
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Re: Paul Schreiber profile
2000-02-17 by Paul Schreiber
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