Good morning. Happy 2006. May the new year bring new ideas and a fresh outlook to the future. We will blog about this more as we get closer to the PegasosPPC release date.
Pegasos System Business Basics
The first ODW based on the G3/4 PegasosPPC was composed of 860+ components mounted on two PCBs. The production cost of each set of boards (mainboard and CPU card) was $260.28 (USD) FOB Germany. To build a complete system we further required:
· Case $48.00
· Cables $4.70
· Memory $38.50
· Hard Drive $55.50
· DVD/CD RW $52.00
· Graphics Card $50.50
· Keyboard and mouse $38.00
$287.20 + $260.28 = $547.48 = ODW cost
Of course, these prices can be compared to other alternatives and replaced to lower cost or improved to increase or broaden performance. Please keep in mind that our largest single production-run was 1000 units and we normally made 300-500 at a time. Higher volumes would drive component costs per unit down. Building more than an ODW is also possible. The Home Media System is a good example of a system based on the Pegasos and "built-up." This is the same system to be demonstrated by Freescale at CES next week in Las Vegas.
There are other costs to consider, such as, system assembly, shipping, marketing, development , etc. On top of all this you would add a cost for an operating system if a free open source option was not selected.
Taking this information and creating a business model using the 615 AW.net individuals that visited the 30 December blog (in the first 36 hours)*, we have an investment cost of $370,000 at $600/unit to produce that number of machines with $50+ going to the OS. In this case that would be Amiga OS4.
Self-starter example for 615 AW.net "buyers" (some won't, some will, it is just an example):
Minimum: $370,000 investment for PCBs, components, etc.
System Assembly: $25(615) = $15,375
Shipping components to assembly location/storage, etc. = +/- $15,000
Total so far: $400,000
That gets them made; then we have to get them to people...
Now, let's sort out what we need to make to keep this enterprise afloat.
Let's say for starters we charge $799 as we have for the ODW. The total revenue generated would be $799(615) = $491,385, subtracting the costs (that will be more!) leaves $91,385. If we divide that margin over the first year we are left with $7615.42 of earnings per month. That is not much to get a company going, but remember we have the $50 for the OS which yields $30,750 or $2562.50/month for OS developers/development. Can you build a business plan with a $10,000 output? It will cost at a minimum $500,000 up front to get this example going and the money won't start rolling in right away. You would need to rely on the commitment of your potential customers. Will they really make the purchases?
You could try to organize a "build-party" and have everyone come and build their own machine. This could reduce the cost of assembly and it could be fun. Vesalia should think about hosting that.
Rob, and others thinking along these lines (The_Editor, Herewegoagain, AMIGR, nouveau-wegster, T_Bone, alx, etc.) are completely welcome to email us for ideas/suggestions on how to get this sort of effort of the ground and moving ahead. We applaud your ambition! The market needs more of it! We think your best bet is DCE, but ODM is moving fast and should be in production with the EFIKA in significant quantities by March/April. As the manufacturer in China there may be other credible options available shortly. Nevertheless, as said, DCE have made the boards before and comply with all the latest rand relevant regulations. Thomas Dellert (owner/operator of DCE) is knowledgeable, reliable and has a great facility.
Remember, the PegasosPPC design release becomes only what you make of it, so good luck and best wishes for a new start in the Happy New Year!
R&B :-)
* Collecting information about AW.net readers was Objective #1 for the 30 December blog. 36 hours later there were 615 individual IP address visits, 1345 page views, an total visit length of 36:29:49 (this is high and a good sign that there was some careful and thoughtful consideration going on - great!). The total number of visits from all sites or directly to the blog was 1165. AW.net had the highest number of visitors and were consequently the focus for this blog.
So the World May Know!
Pegasos System Business Basics
The first ODW based on the G3/4 PegasosPPC was composed of 860+ components mounted on two PCBs. The production cost of each set of boards (mainboard and CPU card) was $260.28 (USD) FOB Germany. To build a complete system we further required:
· Case $48.00
· Cables $4.70
· Memory $38.50
· Hard Drive $55.50
· DVD/CD RW $52.00
· Graphics Card $50.50
· Keyboard and mouse $38.00
$287.20 + $260.28 = $547.48 = ODW cost
Of course, these prices can be compared to other alternatives and replaced to lower cost or improved to increase or broaden performance. Please keep in mind that our largest single production-run was 1000 units and we normally made 300-500 at a time. Higher volumes would drive component costs per unit down. Building more than an ODW is also possible. The Home Media System is a good example of a system based on the Pegasos and "built-up." This is the same system to be demonstrated by Freescale at CES next week in Las Vegas.
There are other costs to consider, such as, system assembly, shipping, marketing, development , etc. On top of all this you would add a cost for an operating system if a free open source option was not selected.
Taking this information and creating a business model using the 615 AW.net individuals that visited the 30 December blog (in the first 36 hours)*, we have an investment cost of $370,000 at $600/unit to produce that number of machines with $50+ going to the OS. In this case that would be Amiga OS4.
Self-starter example for 615 AW.net "buyers" (some won't, some will, it is just an example):
Minimum: $370,000 investment for PCBs, components, etc.
System Assembly: $25(615) = $15,375
Shipping components to assembly location/storage, etc. = +/- $15,000
Total so far: $400,000
That gets them made; then we have to get them to people...
Now, let's sort out what we need to make to keep this enterprise afloat.
Let's say for starters we charge $799 as we have for the ODW. The total revenue generated would be $799(615) = $491,385, subtracting the costs (that will be more!) leaves $91,385. If we divide that margin over the first year we are left with $7615.42 of earnings per month. That is not much to get a company going, but remember we have the $50 for the OS which yields $30,750 or $2562.50/month for OS developers/development. Can you build a business plan with a $10,000 output? It will cost at a minimum $500,000 up front to get this example going and the money won't start rolling in right away. You would need to rely on the commitment of your potential customers. Will they really make the purchases?
You could try to organize a "build-party" and have everyone come and build their own machine. This could reduce the cost of assembly and it could be fun. Vesalia should think about hosting that.
Rob, and others thinking along these lines (The_Editor, Herewegoagain, AMIGR, nouveau-wegster, T_Bone, alx, etc.) are completely welcome to email us for ideas/suggestions on how to get this sort of effort of the ground and moving ahead. We applaud your ambition! The market needs more of it! We think your best bet is DCE, but ODM is moving fast and should be in production with the EFIKA in significant quantities by March/April. As the manufacturer in China there may be other credible options available shortly. Nevertheless, as said, DCE have made the boards before and comply with all the latest rand relevant regulations. Thomas Dellert (owner/operator of DCE) is knowledgeable, reliable and has a great facility.
Remember, the PegasosPPC design release becomes only what you make of it, so good luck and best wishes for a new start in the Happy New Year!
R&B :-)
* Collecting information about AW.net readers was Objective #1 for the 30 December blog. 36 hours later there were 615 individual IP address visits, 1345 page views, an total visit length of 36:29:49 (this is high and a good sign that there was some careful and thoughtful consideration going on - great!). The total number of visits from all sites or directly to the blog was 1165. AW.net had the highest number of visitors and were consequently the focus for this blog.
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