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#1
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Ed Price wrote:
Designing and building a product to provide many years of use, and then capable of being repaired without access to unique components and/or exotic service equipment, is a concept so rare as to be thought a scam. Ed wb6wsn Imagine your cell phone if it was designed to be repaired, and used only common components. It would be the size of a briefcase. Do you think cell phones would be popular if they had to be briefcase sized? What about spectrum analyzers that needed to be contained in several 6 foot high rack cabinets? Is the world better or worse now that a 100MHz oscilloscope can be made the size of a paper back book? -Chuck, WA3UQV |
#2
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Chuck Harris wrote:
Ed Price wrote: Designing and building a product to provide many years of use, and then capable of being repaired without access to unique components and/or exotic service equipment, is a concept so rare as to be thought a scam. Ed wb6wsn Imagine your cell phone if it was designed to be repaired, and used only common components. It would be the size of a briefcase. Do you think cell phones would be popular if they had to be briefcase sized? What about spectrum analyzers that needed to be contained in several 6 foot high rack cabinets? Is the world better or worse now that a 100MHz oscilloscope can be made the size of a paper back book? -Chuck, WA3UQV Most of the chips in cell phones are off the shelf parts, and there are places that do repair cell phones. RMS Communications in Ocala, Florida rebuilds thousands of pagers and cell phones every week. I know several techs who worked there, and they were telling me about the equipment they had available at each work station. One problem with new RF and test equipment is the firmware programmed into chips isn't readily available to program replacement parts. Another problem is the short production life for some parts. If you build a product for over two years, you either do "Lifetime purchases", or redesign boards to use the next round of parts. What is real fun is a base product with up to 100 different sets of software, depending on the customers specifications. Its hard enough to keep it straight on the factory floor, let alone trying to do it in the field. -- Michael A. Terrell Central Florida |
#3
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Michael A. Terrell wrote:
Most of the chips in cell phones are off the shelf parts, and there are places that do repair cell phones. RMS Communications in Ocala, Florida rebuilds thousands of pagers and cell phones every week. I know several techs who worked there, and they were telling me about the equipment they had available at each work station. Most of the parts in a tek scope are off the shelf too, but like the cell phone, there are one or two show stoppers. For the cell phone, it is the microprocessor with its combination mask and flash programming. I know a guy that repairs pagers, but you cannot convince me that it is a profitable business.... The way he moaned about the cost of my fixing his RF signal generator gives me a clue. One problem with new RF and test equipment is the firmware programmed into chips isn't readily available to program replacement parts. Another problem is the short production life for some parts. If you build a product for over two years, you either do "Lifetime purchases", or redesign boards to use the next round of parts. What is real fun is a base product with up to 100 different sets of software, depending on the customers specifications. Its hard enough to keep it straight on the factory floor, let alone trying to do it in the field. It is even worse in the space field, where by the time a part is qualified, and a satellite is made, the part is stone cold obsolete. -Chuck |
#4
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Chuck Harris wrote in message ...
Michael A. Terrell wrote: Most of the chips in cell phones are off the shelf parts, and there are places that do repair cell phones. RMS Communications in Ocala, Florida rebuilds thousands of pagers and cell phones every week. I know several techs who worked there, and they were telling me about the equipment they had available at each work station. Most of the parts in a tek scope are off the shelf too, but like the cell phone, there are one or two show stoppers. For the cell phone, it is the microprocessor with its combination mask and flash programming. I know a guy that repairs pagers, but you cannot convince me that it is a profitable business.... The way he moaned about the cost of my fixing his RF signal generator gives me a clue. One problem with new RF and test equipment is the firmware programmed into chips isn't readily available to program replacement parts. Another problem is the short production life for some parts. If you build a product for over two years, you either do "Lifetime purchases", or redesign boards to use the next round of parts. What is real fun is a base product with up to 100 different sets of software, depending on the customers specifications. Its hard enough to keep it straight on the factory floor, let alone trying to do it in the field. It is even worse in the space field, where by the time a part is qualified, and a satellite is made, the part is stone cold obsolete. -Chuck hmm, kind of like buying a computer ...in a few mounths it is obsolete...on the tektroix and hp stuff.......you would think that they would be feeling the heat from asia like everyone else.....just how much profit is there in a unit that sells new for $75,000.00? and why may i ask after 10 to 15 years it still sells for heavy cash.... |
#5
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gw wrote:
hmm, kind of like buying a computer ...in a few mounths it is obsolete...on the tektroix and hp stuff.......you would think that they would be feeling the heat from asia like everyone else.....just how much profit is there in a unit that sells new for $75,000.00? and why may i ask after 10 to 15 years it still sells for heavy cash.... When you look at the price of a $75,000 unit, consider this: First, the test equipment market is really rather small, nothing like the consumer electronics market, and second, bleeding edge technology test equipment requires some serious money to develop. Tektronix and HP have historically been positioned right in the front of the technology wave. So, a unit that sells for $75,000 may have cost $20 million to develop to where it could be manufactured. It probably only has a market life of 1000 units. Then the actual manufacture of the product costs something. A good round figure is the ratio of parts cost to sale price is 3x to 4x. Labor figures in at about equal to parts cost. -20,000,000 to develop -25,000 x 1000 units = -25,000,000 parts cost -25,000 x 1000 units = -25,000,000 labor cost 75,000 x 1000 units = +75,000,000 sales price of instrument ------------------------------------------------------------- Bottom line +$5,000,000 Take that $5 million, and subtract some for advertising, and service, and you haven't got much left. Granted these numbers are just guesses, but I have been doing small quantity manufacture for a lot of years, and these kinds of ratios come up again and again. As to why the Tektronix and HP stuff commands a high price in the used market, the reason is simple, the gear is high quality, has very high capabilities, and the price of a new replacement is also high. -Chuck |
#6
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Chuck Harris wrote:
I know a guy that repairs pagers, but you cannot convince me that it is a profitable business.... The way he moaned about the cost of my fixing his RF signal generator gives me a clue. -Chuck Believe what you want, but the place has around 100 employees, and was looking at buying the old L3-Com/Microdyne complex to expand into its 120,000+ square feet of buildings and acres of land for parking. They are bigger than Microdyne was when it closed the complex and moved to Pennsylvania. If there is no money in repairing pager and cell phones, why do they want to buy property which is priced at 1.6 million dollars? Here is the listing for the complex: http://www.foxfirerealty.com/showlis...tid=17779&id=2 -- Michael A. Terrell Central Florida |
#7
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I'm not trying to be difficult Michael. The reason I have trouble
seeing how this is a money making venture is the low price of cell phones and pagers. When a Cell phone lists for $99, how much time can a technician really spend fixing it? In the repair business, the maximum repair price you can charge a customer has to be less than 40% of the cost of new, or they will always walk away. If they walk away, and give you their phones for free, then perhaps you could make a little bit fixing it and selling it, but really, now, tracphone sells refurbished nokia 5185i's for $39. There is not much margine in that. Who pays for the time necessary for the technician to open the phone, diagnose the problem, unsolder the offending module, test the phone, reassemble, and pack? You would have to pay your technicians less than $10 per hour! -Chuck Michael A. Terrell wrote: Chuck Harris wrote: I know a guy that repairs pagers, but you cannot convince me that it is a profitable business.... The way he moaned about the cost of my fixing his RF signal generator gives me a clue. -Chuck Believe what you want, but the place has around 100 employees, and was looking at buying the old L3-Com/Microdyne complex to expand into its 120,000+ square feet of buildings and acres of land for parking. They are bigger than Microdyne was when it closed the complex and moved to Pennsylvania. If there is no money in repairing pager and cell phones, why do they want to buy property which is priced at 1.6 million dollars? Here is the listing for the complex: http://www.foxfirerealty.com/showlis...tid=17779&id=2 |
#8
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Chuck Harris wrote:
I'm not trying to be difficult Michael. The reason I have trouble seeing how this is a money making venture is the low price of cell phones and pagers. When a Cell phone lists for $99, how much time can a technician really spend fixing it? In the repair business, the maximum repair price you can charge a customer has to be less than 40% of the cost of new, or they will always walk away. If they walk away, and give you their phones for free, then perhaps you could make a little bit fixing it and selling it, but really, now, tracphone sells refurbished nokia 5185i's for $39. There is not much margine in that. Who pays for the time necessary for the technician to open the phone, diagnose the problem, unsolder the offending module, test the phone, reassemble, and pack? You would have to pay your technicians less than $10 per hour! -Chuck It is run like a factory, not one up repairs. That makes a huge difference. The techs don't disassemble the units. the production people do a quick test, clean up the cases, and send the boards to be repaired. A lot of repairs are new crystals, or reprogramming the synthesizer, or replacing a bad LCD display which is done before a tech sees it. Also, they do large runs of the same unit, then do a different model. Also, some only need a few pieces of the case replaced, and the password cracked so it can be reprogrammed in the field. They have service contracts where someone ships a 1000 pagers or 100 cell phones and they repair what they can in a fixed time. They either return the bad units, or replace them with their own stock of repaired units, depending on the contract. they also repair a lot of older models and sell them overseas. -- Michael A. Terrell Central Florida |
#9
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"Chuck Harris" wrote in message ... Ed Price wrote: Designing and building a product to provide many years of use, and then capable of being repaired without access to unique components and/or exotic service equipment, is a concept so rare as to be thought a scam. Ed wb6wsn Imagine your cell phone if it was designed to be repaired, and used only common components. It would be the size of a briefcase. Do you think cell phones would be popular if they had to be briefcase sized? What about spectrum analyzers that needed to be contained in several 6 foot high rack cabinets? Is the world better or worse now that a 100MHz oscilloscope can be made the size of a paper back book? -Chuck, WA3UQV We were talking about repair and service equipment, not consumer items. A consumer item is expected to have a short life-cycle, and repairability is often not a concern. I never saw "multi-six-foot-rack analyzers"; the oldest & biggest I can recall were Singer FIM analyzers, which were about 24" wide by 30" tall and deep, and took four guys to move them (and the plug-in RF heads were a one-man lift!). OTOH, everything inside was reachable and easily repairable. If that 100 MHz scope can be built to have a reasonable cost to lifetime ratio, then it could be considered a consumer item, and a non-repairable investment. But to me, if I have to pay $10k or more for a piece of test equipment, it had better last quite a few years and allow me to do re-calibration and even moderately severe repair. Ed |
#10
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Ed Price wrote:
We were talking about repair and service equipment, not consumer items. A consumer item is expected to have a short life-cycle, and repairability is often not a concern. If you cannot see the relationship, then you need to stretch a bit. Everything in electronics, test equipment especially has grown in complexity and performance, as it has been reduced in size. Some of the reductions are there to make it possible to fit more test equipment in a given space, and some are there because of necessities of the new technology (eg. microwave speeds and low power consumption are better done with tiny sized components.) I never saw "multi-six-foot-rack analyzers"; the oldest & biggest I can recall were Singer FIM analyzers, which were about 24" wide by 30" tall and deep, and took four guys to move them (and the plug-in RF heads were a one-man lift!). OTOH, everything inside was reachable and easily repairable. Was your life, as a technician that is, made better or worse when that same 4 man lift SA was reduced to one that you could carry yourself with one hand, while carrying your 1G scope with the other? How about performance? Did it help you to have the bandwidth limit of your old 4 man lift SA rise from 1GHz to 300GHz? How about your 30MHz scope that is now 1GHz? Did you notice that the prices went DOWN? How about the heat generation? Have you ever worked in a lab that had no effective air conditioning, and also had a herd of Tek 500 series scopes whirring away?.. in the middle of the summer? I have, and I am quite happy not to do it anymore. We saw temperatures as high as 120F at times. No windows, one door, lots of fans. Turn off the equipment, and the AC did quite fine. And finally, how about the space savings? Does it help you or hurt you to recapture that floor space the old SA, and scope, and signal generator used? Tiny little custom component ridden hard to service test equipment made it possible to move away from that kind of scene. If that 100 MHz scope can be built to have a reasonable cost to lifetime ratio, then it could be considered a consumer item, and a non-repairable investment. But to me, if I have to pay $10k or more for a piece of test equipment, it had better last quite a few years and allow me to do re-calibration and even moderately severe repair. All of the $10K+ stuff I have seen from HP or Tek would easily meet your needs. Calibration? You cannot be serious. Most of this stuff is so finely calibrated that it would be beyond the capabilities of anything but an expert calibration lab to accomplish the task. Just having the standards necessary takes a whole lab... and a whole budget. I know this because I tried to set up a NIST traceable cal lab for my business, and eventually concluded that for me to do that, cal would have to become my exclusive business. I still have all the standards and equipment, but no time to put them to use... No money to keep them in cert with NIST. It is FAR cheaper to send the stuff out and get it calibrated. The "consumer grade" goodies in the test equipment market don't really need more than a simple calibration checking. I cannot tell you the last time my little Fluke DVM needed recalibration... Because it is 15 years old, and it has NEVER needed recalibration. Has something to do with the little fidgety custom components that are inside it. Same goes for my Tek 2465 scope. -Chuck |
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