drewiv":140zzxoi said:
After reading that entire (stupid and mind-numbing) thread this was one of the more idiotic things written (quote below). Obviously, this is coming from someone that has never started or operated a business before in their life, or more likely, has never left their couch. Not to mention an old time (self-banned) RTer agreeing with the math, completely uninformed. I could also do without the personal attacks and homophobic banter that litter the thread, that's just not my style or something I care to deal with in my life. First and last thread I read on HC.
knucklefux":140zzxoi said:
lets look at the math for a bit
cost to build=$1800 (estimated, but probably pretty accurate)
sale price=$3600
profit per amp=$1800
1800 x 25= $45000
$45K profit.
10 amps at cost would be $18K. if 10 people paid the $1K upcharge, that's $8K. i'm sure MC's cut is enough to get those 10 amps out, but only two have made it so far.
something's stinky.
knucklefux is the proprietor of Titan Amps. Small amp business, but the dude knows amps and the costs associated with building them. Based on my experience as well, I'd say he's pretty close on the cost to build a CCV. Might be a little higher due to labor costs to build it...
Where he is wrong is where he starts talking about profit per amp. He's not considering any of the R&D costs that have gone into the amp, including whatever "bailout" had to be paid to Mark so he could live and pay the back rent he owed, etc. The amp was changed since Mark's original design to add midi, I believe there were some attempts at layout changes per Mark, so there was for sure R&D there. Also, you have to keep some amps, cabs, etc around for demos, etc. - that costs money as well. Of course, to be a real business, you have to have a pro website designed, have professional pictures taken, etc., etc., etc...
I doubt there has been any profit on the CCVs yet. If there is, there hasn't been much, believe me... I am amazed that, given everything I know about what this shit costs to get going, Brad has been able to deliver ANY of the amps to the guys that got screwed, and I commend him on that...
I'm doing the same thing in terms of building a repeatable amp business. Now, of course, mine is done from scratch (no existing PCB design) with only a turret board prototype, but nonetheless, I'm sure there have been significant costs that knucklefux hasn't thought about. I can't believe how much everything costs to get going and I can't believe how many stupid mistakes you make along the way that cost you big time. My amp works now with some hardwiring I did and I love how it sounds, but I still can't build quantities of them yet, because some traces need to be re-routed and I need a whole new set of final (I hope!) boards run and boy does that cost - probably $2K total because I have to make one off prototypes, including parts, etc. Believe me this eats up profit quickly, as you are in the hole BIG time before you can even sell amp one. I also had to have a second prototype head case built, because I specified the first one too small in depth and the knobs go past the end of the cab... Doh... $300 bucks down the drain... Now I'm trying to get front and back metal panels made for the head cases and that is taking forever and will require expensive, one-off prototypes as did my chassis, etc., etc., etc... Now granted, once all prototypes are complete and you are making many amps, there are economies of scale that make the profit per amp better, but there are still all those up front costs.
I'm not complaining, because I really believe I've got something killer here and will be able to make some profit down the line, and truthfully, this isn't all about short term gain for me anyway. It is just something I really wanted to do and I have the money to fund the startup... Many people spout off about the price of "boutique" amps, but when you use great components and build only a few with high quality chassis, custom head cases, etc., the amount of profit isn't what people think...
Steve