Amplifiers and cost constraints.

[JMFahey]

Originally Posted by regiregi22

Aren't you guys able to assemble a simple gainclone in one day, let's say, 12 hours of hard work?
I think that the deciding factor would be enclosure workmanship, it can range from already factory made to scratch work from raw metals.

I you already have the case (let's say a Modushop one), soldering components to boards is no more than 1-2 hours, then drill all proper holes in the case, another 1-2 hours, and how much do you need to cable two dozens of wires?

Agree,but the actual assembly time (what you are basically referring to) is only a small part of the job, as defined by the OP.

Remember he states 2 contradicting requisites:

1) on post #3 he says

Let's assume we have been given £150 to buy the components and parts and hand in 1 day later a power amplifier, a finished product ready to work.

The only way to do this is to drive downtown, buy a full kit which includes everything, including machined and finished cabinet and chassis, silkscreened panels, etc.
This alone takes 2 to 4 hours.
Then you go home and, say, in between 4 and 8 hours you have your amp ready, depending on complexity.
A simple no frills preamp, Chipamp and simple classic PSU will be easiest/fastest .

but, on post #1 he asked for:

2)

the unit must be suitable for small volume production (10-12 units per day)

I beg your pardon?

Well, now we are getting into commercial production, and costs start to be the main stumbling block.

a) As I said before, an average person can build , say, at most 2 of those a day (forget automated assembly for such small amounts) so consider on hiring 4 people.
Did you consider that in your cost scheme?

b) you are talking about £150 per amp, meaning
12 x £150 per day=£1800
20 x £1800 a month=£36000 <-- just on raw parts.

Add to that 5 salaries : 4 builders + 1 "do everything" person, from answering the phone/mail to checking that they actually work to receiving parts to going to the Bank to making coffee to ...... you name it.

Add shop rent + light + gas + phone + taxes + insurance + accountant + "everything else".

You'll easily need £60000 a Month cash flow, meaning that to start such a Business you need some guaranteed £360000 Capital or Bank credit = 6Months operation.
You will not need them "all at once", but they must be available within that timeframe, and maybe you can start with just £150000 on hand.

3) Retail (Joe Buyer out there) price will be around 4X the raw parts cost or 2 X production cost (factor in those salaries/rent/taxes/etc.) as a very low starting point.
The retailer alone will make at least 30% if the retail price or he will not carry your brand, you'd be happy to earn 10% to 15% of that retail price.

Are you sure you will sell *guaranteed* 12x20=240 £600 amplifiers a Month , meaning 2880 amplifiers a Year?

Any less and ends will not meet.