Monday, January 23, 2017

Manufacturing Costs

I've been calculating ScopeRoller manufacturing cost, which really hurts.  There is the material cost for aluminum tubing, for acetal solids, the three types of casters, the hex head bolts and the 8-32 socket head screws, then the labor to cut everything up and assemble.  I'm trying to make sure that I am making money (I am) and also see where I can reduce price to increase sales.

Glad I did this; in many cases my materials plus labor was very close to sale price.  Prices now adjusted upward.

2 comments:

Will said...

Buying the materials and hardware in bulk can be a considerable cost savings, but you want to be VERY sure of your design, before spending real money on stock. Not having a local industry to absorb excess material may be more of a potential problem than most manufacturing businesses would encounter.

Which brings to mind my perception of your latest version: It looks like a prototype. Hmm, more accurately, it looks like a proof of concept. The square tubing mounted on round legs doesn't have an integrated look to it. The bolt heads protruding from the square tubing just accentuates this. I suspect that this may cost you sales, but I have no way to quantify this.

I really think you would be better served to take a fresh look at it, with a view to making it appear more "organic", as if it belongs there. I realize that part of your production problem is a lack of suitable milling/turning equipment. You are dramatically limiting yourself because of this. One ends up wasting time and effort trying to work around these limits, and the finished product suffers. Been there, done that. One gets boxed in mentally this way, and if done long enough, adding better equipment doesn't expand your horizons.

Clayton Cramer said...

Will: doing it with round tubing looked better, but was harder to do accurately than with square tubes.