commercial amp/dac prices - Page 2

Mostly just balancing the resistances at the inputs to minimize bias and offset (or in some cases, finding the right compromise).

Quote:

Originally Posted by pabbi1 

First, I have no knowlege of any of the particulars of this amp, and am in no way associated with the designer or TTVJ. I have talked to Pete on several occasions in the past, but never regarding ANY solid state designs.

 

Just for grins (give or take):

 

Components:                  $50 (remember, you are buying, not getting samples - include shipping)

Case:                             $20 (Custom front and back panels are expensive in low volume)

PCB:                             $15 (again, small volume)

Board stuff/solder:           $70 (this low a volume,  so a manual stuff and solder - guessing two hours of assembly and test)

Misc hardware                $15 (knob, screws, feet)

Assembly, test & pack   $15 (1/2 hour guestimate)

Wall Wart                      $15

 

Total:                            $200

 

You cannot base a 1000 piece price for cost in small runs - and, in fact, have problems finding fab shops for small runs. And, fabricators have been known to screw up entire runs, where they may ruin all the parts in process. Just sayin. This estimate does not recognize any overhead, like legal work (product liability), or patent protection, or even design software and prototyping expense.

 

It all adds up, even if you get it all right, and with no scrap or complications. As you see, there is $100 in labor, no matter what all else, and that estimate may be low.

 

 

First, let me thank Pabbi for trying to put some numbers to this.  He made some very accurate estimates.  However, I would add:

Components - at $50 need to be ordered in quantities of 100, so $5000 for components

Case - there's no way it would cost $20 with the silk-screened endplates, punched holes, and counter-bored volume knob.  It would be at least twice that amount with a minimum of 100 to be ordered - $4000.

PCB - PCB's of this size would need to be ordered in quantities of 400 to get down to $15 per PCB, so $6000.

Misc. Hardware - $15?  I think the knob alone would be $5 a piece, so $20 and same quantity as the rest - $2000.

Walwart at 100 - $1500.

So, to start out with a run of 100, you'd have $18,500 invested just for parts.  Just about right for Pabbi's prediction of $17K - $20K.  Keep in mind that this doesn't count for anything in terms of labor, packaging - or the initial investment in R&D and testing *(which can be significant).

Finally, when you do this all by your lonesome, there's only one way you can keep going - sell enough to make back that initial investment so that you can order enough to make another batch of 100.  So, you sell it for $495.  You need to make a profit, and the store who's selling it needs to make a profit, and you need to earn at least $18,500 just to have enough to build another batch of 100 ... but this doesn't count the original $18,500 that you already invested.  So, at $495 each, you'd have to sell 75 of them before you'd have enough money to make another 100 and to pay for the original 100.  So, there's 25 left over to give you some sort of profit that you can use to develop other projects and to pay the guy whose store is selling them.  Remember, too - none of this is counting labor.

There's no guarantee that you'll ever sell that many - it may take a couple of years ... you've got a niche product that supports a niche culture surrounding a niche product (headphones).  It's a tough business and like many things, it takes more than an academic exercise to learn what's really involved.

P.S. I also know many of these people personally.