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“Secrets” about the consumer audio business you may find interesting

audiosciencereview.com

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Re: “Secrets” about the consumer audio business you may find interesting

#2
Articles like these make me appreciate my business degree, because this list is the basics of any business. 30% COGS, high shipping costs, outsourced manufacturing, big box focusing on low end market, etc is all very normal for almost any industry.

Re: “Secrets” about the consumer audio business you may find interesting

#3
This seems to apply across the entire Small Plastic-covered Electronics sector. I worked for an instrumentation/sporting goods manufacturer among others and this reads like I wrote it myself.

The CEO, even of a small operation, likely has no idea what the performance characteristics of their devices are. They exist to raise capital and deal with paperwork.

We operated at about a 25% bom cost which was muuuuch higher than it needed to be but we were the aforementioned $50 components assembled by baboons case. The products were very high end meters and sensors with the electrical sophistication of a McDonalds toy, just using whatever the highest end parts Arrow et al would sell us.

Like they aluded to, ultimately it's all the little stuff that gets you. Packaging, whatever voodoo the S&M team is up to, random IT bullshit, heath insurance, random FCC compliance stuff, etc.

Re: “Secrets” about the consumer audio business you may find interesting

#4
post #2

Articles like these make me appreciate my business degree, because this list is the basics of any business. 30% COGS, high shipping costs, outsourced manufacturing, big box focusing on low end market, etc is all very normal for almost any industry.

I don’t have a business degree, but every point in the post was totally as expected...nothing particular to audio in there.

Re: “Secrets” about the consumer audio business you may find interesting

#5
post #2

Articles like these make me appreciate my business degree, because this list is the basics of any business. 30% COGS, high shipping costs, outsourced manufacturing, big box focusing on low end market, etc is all very normal for almost any industry.

I don't mean to be rude, but you don't need a business degree to understand the very basic things that you mentioned. I am fairly sure that most people using Hacker News understand those simple concepts in business.

Re: “Secrets” about the consumer audio business you may find interesting

#6
post #2

Articles like these make me appreciate my business degree, because this list is the basics of any business. 30% COGS, high shipping costs, outsourced manufacturing, big box focusing on low end market, etc is all very normal for almost any industry.

I don't mean to be rude, but you don't need a business degree to understand the very basic things that you mentioned. I am fairly sure that most people using Hacker News understand those simple concepts in business.

I don't know; I've seen so many people (including my younger self) who have completely wrong intuitions about business. This often manifests as FUD and hating that can be hard to dispel.

Re: “Secrets” about the consumer audio business you may find interesting

#7
post #2

Articles like these make me appreciate my business degree, because this list is the basics of any business. 30% COGS, high shipping costs, outsourced manufacturing, big box focusing on low end market, etc is all very normal for almost any industry.

30% COGS surprised me… I always estimated it would have been around 50%. Learned something new.

Re: “Secrets” about the consumer audio business you may find interesting

#8
post #6

Earlier quoted context omitted.

I don't mean to be rude, but you don't need a business degree to understand the very basic things that you mentioned. I am fairly sure that most people using Hacker News understand those simple concepts in business.

I don't know; I've seen so many people (including my younger self) who have completely wrong intuitions about business. This often manifests as FUD and hating that can be hard to dispel.

[deleted]

Re: “Secrets” about the consumer audio business you may find interesting

#9
post #3

This seems to apply across the entire Small Plastic-covered Electronics sector. I worked for an instrumentation/sporting goods manufacturer among others and this reads like I wrote it myself. The CEO, even of a small operation, likely has no idea what the performance characteristics of their devices are. They exist to raise capital and deal with paperwork. We operated at about a 25% bom cost which was muuuuch higher…

> random FCC compliance stuff

Nothing better than designing a product and actually producing a batch of it... and then finding out you have some EMI problem requiring a redesign. If you're lucky, you can remedy it by manually adding some shielding tape, if not... you might as well file for bankruptcy in the worst case.

Re: “Secrets” about the consumer audio business you may find interesting

#10
post #3

This seems to apply across the entire Small Plastic-covered Electronics sector. I worked for an instrumentation/sporting goods manufacturer among others and this reads like I wrote it myself. The CEO, even of a small operation, likely has no idea what the performance characteristics of their devices are. They exist to raise capital and deal with paperwork. We operated at about a 25% bom cost which was muuuuch higher…

> random FCC compliance stuff Nothing better than designing a product and actually producing a batch of it... and then finding out you have some EMI problem requiring a redesign. If you're lucky, you can remedy it by manually adding some shielding tape, if not... you might as well file for bankruptcy in the worst case.

Ha! I've seen this. We had one screw that was close enough to a trace on the board that it would lock up the device and fail ESD testing. Ended up plugging the top of that one screw hole with RTV on the whole batch.
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