RaveGuru:
I thought about doing that earlier, but I was kinda hoping to avoid the business model for this. I wanted to keep this in "hobby" status. If I have to go business-core to make these then I may very well take your suggestion. But I also want to keep the price low enough that people will want to buy it. Even if an extra $5.00 is not unreasonable, fewer people would be interested which increases the risk of the bulk purchase.
FMan:
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Can you give us a rundown of the costs? They seem extremely high. Are you planning to order the devices ready built? The components surely don't cost much. What are the costs that push up the price?
Sure. I'm basing all of this on quantities of 50, so keep that in mind for the line item costs which are listed per unit:
1. Components: $21.22 (includes shipping to me from distributor)
2. PCB Fab: $10.03
3. PCB Assembly: $8.84
4. PCB Shipping: 1.00
5. PCB Prototyping: $13.00
Total: $54.10
It was $53.71, but I forgot to change the transformer to the one that worked as opposed to the one that didn't. Now that I've updated that, I have less than $1.00 of buffer.
The PCB shipping covers all shipping costs between fab, assembly, and me. The prototyping covers what I've spent on prototyping including my attempts at soldering the ethernet chip myself. I've actually spent a bit more than that, but that's OK. I don't mind spending a little bit on this as long as it doesn't exceed a few hundred. The PCB assembly covers just soldering the ethernet chip. The rest is soldered by me. Surface mount components are soldered by me with solderpaste in a toaster oven (a makeshift attempt at a reflow oven) and through hole components are soldered with a soldering iron and solder wire.
One thing to note is that the ethernet chip increased in price from about $9/chip to $13/chip since I started this project. While that's a single quantity price, the multiple quantity prices for that chip also increased accordingly.
A couple of things to understand are:
- Quantities of 50 - 100 are still considered to be prototype quantities and priced as such by almost all the fab and assembly houses I check out. The real price discounts on components and services start to happen in quantities of 200.
- To order a quantity of 200, I would have to drop about $5k on this beyond what I've already spent. I would need confidence that I could sell a reasonable amount of units before ordering that many so I would need to go to pre-orders and get enough pre-orders to justify spending that kind of money. Right now, to be honest, I don't know that I can sell 50 units, let alone enough to make 200 of these. If I could make 200 at a time, I would be able to sell these at $50.00/unit +S&H and still be able to cover a warranty and have a decent profit margin.
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...the law, which states that a mandatory warranty period of six months must be honored.
That may be a law in Europe, but there is no law in the US requiring a warranty. The laws here require certain things if I do specify a warranty, but it is not required to offer one. 90-day warranty is a very common warranty here in the US. The most common warranties I see are 90-day, 1 year, 3 year. Of course, you'll find all kinds of warranty periods which are all based on what you're buying and from whom you're buying it. I've even seen 20-day warranties which really just act as DOA coverage.
Something I've been thinking about lately was a cheaper ethernet card that would not be compatible with the RR-Net could use the Microchip ENC28J60. Those are going for less than $3.00 a piece in quantities of 50 or more. We're talking about 25% - 33% the price of the CS8900A which is the most expensive part on that board and requires me to send it out for soldering. I can get the ENC28J60 in an SOIC package that I can solder so the soldering line item would be gone. Those factors reduce the cost by $17.30/unit in quantities of 50. But, this is an SPI chip and would require a little extra glue logic so it may be more like a $15 - $16/unit price reduction. I think that is a topic for another thread considering the title of this one and how far along we are. I'll probably at least design it for fun. I can breadboard it because the chip is available in a dip package so prototyping costs would be drastically reduced as well.
I don't think anyone really thinks I'm trying to be shady, but as far as I know I've really only met one person in this forum in person and I know that it can be hard to trust someone you've never even met. I'm glad you guys don't think I'm trying to do swindle you. I just really love to do C64 geekery and I was kind hoping to get involved and be a part of what's left in the C64 world. While I'm definitely looking for business opportunity, I want to keep the C64 as a "pure" for-fun hobby. I'm kinda afraid that if I go into business mode here, it will never end. After I get this project wrapped up, I kinda want to go hog-wild on projects for the C64. How this one goes will determine how I approach future projects.