Re: DIY DI question




Mike Rivers wrote:

> Fletch wrote:
>
> > My question is, if the Radial is only a hundred bucks, and the transformer is
> > $73, what's your time worth?
>
> Well, give him a little credit. The Radial JDI is $175 from Mercenary
> Audio.
>
> It's a good example of how a product's price is developed, though. Put
> a $75 transformer and $10 worth of jacks, switches, and resistors in a
> $10 box, add $30 for labor, and by the time you mark it up 50% (not
> unreasonable considering the cost of advertising, the distribution
> chain, and relatively small quantity sales) and there you go. They
> probably don't get a big price break on the parts in the quantities
> they build these things, but they can get the box a lot cheaper than
> you can, and it's a lot prettier than what you could make yourself.
>
> Give up the profit, pay yourself nothing, and be satisfied with a die
> cast aluminum box and, yeah, you can save $75 over the cost of the
> Radial.

On the subject of how pricing works out, you'll typically find that the higher
quantity selling pro-audio gear retails for about 3 times the cost of the parts
inside it. The manufacturers pay a lot less for the bits inside than you will
though, so it works out as a fair deal. For example the dual op-amps used in the
gear I design cost us I think 15 cents each. Small transistors are ~2 cents. SMD
resistors as little as 1/10 of a cent.

More specialist stuff has a much higher ratio.


Graham


.



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