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Old 02-07-2004, 03:44 PM
Steve
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Default Re: Pricing, 101

Eric Smith <[email protected]> wrote in message news:<[email protected]>...
> Austin wrote:
> > Quite frankly, I am amazed at how folks think about this. You have
> > obviously never thought about that computer on your desk, and how it can
> > be sold for $499! Or even your car, just go price the parts
> > individually some time.

>
> Thomas Womack <[email protected]> writes:
> > I've often priced the parts for building a computer, and they add up
> > to something within 15% of the price of buying the computer from Dell.

>
> You may have priced the subassemblies such as the motherboard, CD-ROM
> drive, etc. Try pricing the actual components (chips, passives, etc.) in
> small quantity. You'll be lucky if you can get a total BOM cost less
> than five times Dell's price.



The total BOM cost in small quantities is irrelevant because you can
buy motherboards from as little as £40 (~$60) in the shops. The issue
is that if you buy Xilinx parts in large quantities then you're
alright, if you don't buy in large quantities then you have to put up
with high unit prices so those that want to buy high volume chips in
small quantities don't benefit from the economies of scale for these
parts.


--
Steve
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