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by arcticbull
1047 days ago
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10,000 @ $35 is $350,000 - that's really not that much money. That's like 1 to very generously 3 engineers for a year. Can you really design, build, validate, ramp, stock, fulfill and deploy your own hardware for less than that? I strongly suspect they ran the numbers and the answer was a hard no. Not to mention the time penalty - as a rule of thumb it takes about minimum 6m average 12m to go from concept to physical units in people's hands at scale. These Pi's are shipping today. As a startup, that's hard to pass on. |
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A volume like 10k puts you in a dreaded "in between" zone. You're not making a one-off widget that a customer is willing to pay an unlimited amount for because it solves a unique problem. And it's not enough volume to make something that just rolls off an assembly line. All of the simplistic mental models for how to proceed, don't work.
I work in such an industry, making specialized equipment. Every component is an expensive buy-in. It's ridiculously hard to find cost savings every component is up against the same math. Then again the competition faces the same problem.