Re: Pricing, 101
Austin Lesea wrote:
> You learned the right stuff. Still applies. If a disti orders 100
> parts (and they do) we have to process just that many parts for that one
> order.
Buying XC2V6000 at nuhorizons I get a 600$ discount going from 24
pieces to 100 pieces.
You really think that there are than 14.000$ distribution cost for
distributing 24 FPGAs? (24 times 600$)
> Disti's don't want to stock anything anymore, so that makes
> costs go.
>
> Imagine Xilinx' dilemma: what do we build? and when do we build it?
> If we have an order for 100K parts spread out over a year, everything is
> trivial, and less costly. But if we have seemingly random orders
> popping in all of the time, we have to build ahead (risk) and sometimes
> scrap parts that are not moving.
[...]
>
> We can't seem to convince disti's to work for free, however, so they
> charge what they feel they need to in order to make a profit. Disti's
> also have 200+ FAEs of their own on their payrolls to support their
> products, as well as order entry systems, stocking(?), unsold inventory,
> stocking losses, uncollectable accounts (deadbeats), etc.
Austin: Some of these are self made problems.
In germany for example Avnet and Insight are the only Xilinx
distributors for your FPGAs. These are huge distributors that have an
organization tailored for large customers with large orders.
(My last insight order involved about a dozen emails from me and
three letters from Insight. I can see that that is costly, but it is
unecessary)
Both are reluctant to even talk to me about 2.000€ orders and I have
prove that they outright lied to me about stock at least twice.
Why don't you get yourself a small distributor in addition to these?
One without hundreds of FAEs. Without trade fair appearances that cost
hundreds of thousands of dollars. One that is happy to stock a number
of standard parts and make a 30% profit with them?
Kolja Sulimma
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