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R&D is the killer, I should know since I work in such a devision. Tooling is the other cashcow.
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R&D is a killer when you're designing something completely different. They already have the MPU software OK. I know this beacuse Videoton of Hungary sent me quotes for a prototype product and they changed the quote 8 times before they had it right, but this was for a new product. Now for products they already make, they might change for something compatible and that is it. I would like to see a system that could also run the sensored Aveox. Does Novak have their own engineers?
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True that the cost won't be as great as designing something from scratch, but what will the cost be for creating an "enhancement" of a current product? 15-40K? Is the market big enough to cover that cost? Or could it be that they are playing the cat and mouse game with the consumer market...them waiting for a big scale electric RC to hit the market and then they'll follow with the electronics.
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Each system requires new tooling for 2 multi-layer PCBs, case, water-"resistant" seal, heatsinks, packaging, instructions, art work, advertising The software usually needs to be updated with each new release to add new features---lipo cut-off circuitry, motor rotation, etc. etc.---so each system project starts from almost ground zero.
Then a number of prototypes need to be designed and mostly hand built. Then the beta units have to be tested. Most of the other sub projects don't begin until the board design is locked-in. Then all the parts for the project can be ordered---some with 8-12 week lead times. Novak has 4 engineers---5 really, but 1 is the Operations Manager. Quote:
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NOVAK, IF YOU BUILD IT THEY WILL COME....IF YOU BUILD IT THEY WILL COME....IF YOU BUILD IT THEY WILL COME....
I saw a baseball movie of a guy who built this field in the middle of no where and guess what, they came. I wish I could remember that name of that movie. I'm pretty sure there are around 10000 people world wide that would buy such a HV system, specially from a company like Novak. Let say if your cost is $150 per system and you sell it for $350 that equals to $2,000,000 in profit. Better yet, does Novak post any financial information at all for investors? If so you can actually see the company's profit. |
Field of Dreams. Never saw it, but there has been enough talk about it that I remember it...
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The only people foolish enough to invest in NE are the Novaks.
You have a charming misconception of the profitability of R/C electronics and other products. There is a reason why Losi, Associated and Orion/Peak have been aquired by bigger companies in the last few years. As soon as a company comes out with something new and exciting, it is only a short time before a Chinese factory manages to knock it off. |
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Yes, I understand your point. I do own a company, before this I worked as a stock broker and pitching to a client the profits of a company was the best way to sell the stock. Now I've been around electronics components since 2000 and some of the profits I make are out of this world. For example, I can buy ATMEGA8L-8AU for $0.65 for 500pcs. or less and $0.45 for 10Kpcs. and more, the IRFS3207 I bought from a US company for $1.75 (EXPENSIVE) and that was only 250 pieces and for 1000+pcs. that price would come down to $0.85 a piece. So I do have some Idea of the profits some companies can make.
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hey lutach,
we here made a mistake not long ago to go with cheaper caps. Needless too say they blew up within minutes. It looked good on paper though, it reducing the cost per unit by 5 cents or so. |
Here is a funny thing that happened in 2002. I called Bob at Astro Flight to see if I could get some of his business. He asked me to quote him on a couple of things. He told me that there was no way my prices were that low. I even gave him NET30 of the bat and he still said no. I asked him where he buys the components from, he said Digi-Key. That blew me of my seat. So I told him the only people I know of that buys from Digi-Key are the small repair shops and people that are in a hobby and needs 2 or 3 parts. He never spoke to me again. I know that it comes down to the profit and every few cent counts, specially when you save that extra few cents on the same part that was bought from a different company.
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Kinda odd that he never spoke to you again. Unless he really didn't want your business(he had a really good deal somewhere and threw you off by mentioning Digi-Key), or was just plain embarrased.
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Like I said Novak, If you build it they will come. I will get this one.
http://www.teamnovak.com/products/br...tor/index.html |
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