You said 'Did the refrigerator company include cost of MFR (man-hours, storage, and transport)' and I said it's gross margin.
The difference between COST and SELLING PRICE. COST including material, premises, personnel, transport, fuel etc. Production cost.
I never suggested it was materials cost.
Materials cost, however, in the case of a small company, is the majority of the cost. A small company has no chairman, board of directors, managers, HR department, corporate jet, health insurance etc. etc. etc., so markup on parts cost is roughly equivalent to gross markup. Oh, and of course, shareholders. Try to bear in mind that I am an engineer. Pi is roughly 3. Do I have to spell everything out?
If I build one in an hour, I'd be paying myself $80 an hour leaving $20 for other costs. My amps are surface mount, I can probably build half-a-dozen (the size that fits my reflow oven) in an hour once I get organized.
Even if it takes 2 hours to build a tube amp, and it shouldn't take any more if the line is well organised, you could still disappear the cost of labour in the 100% markup on parts cost.
That's what I used to do. Design for manufacture.
You're damn right I can objectively define the criteria. Not only that, I can sum them up in one word. Transparency. Hi-fi is about high fidelity in my book. If you don't like it go read some other book. The O2 is transparent. You won't get a BETTER sound in those terms. You might get one you PREFER, but only because it's not transparent.
Is there anything else?
Edited by wakibaki - 8/15/12 at 9:34am