Adrian,adrianpglover wrote:
I've been in the electronics industry for a little while now (probably less time than you), first at a small company where we assembled and tested our own boards in house and since the acquisition with a large company known by three letters and associated with the color blue. I specifically design, test, and spec out PSUs, batteries, and all manner of dc-dc and analog circuits. From what I've seen, sure, I can agree that the BOM cost of a power supply unit wouldn't be above $50 or so, for what goes on the board at least. If you are running extremely low volumes, like we were prior to the acquisition, then your PCB cost can get up to $75 pretty quickly. The real cost comes in if you're not using automated means (pick and place machines, reflow ovens, wave soldering, and the like) to assemble and test (ICT - in circuit testers, boundary scan, etc) and instead requiring skilled labor to do the job. If the testing is all manual and takes a lot of time to perform, then this can also increase your labor overhead. If then you also assume that you are outsourcing this (as you can tell by them sending the parts to Florida for testing and repair), there's another source of markup. If the company you have been outsourcing to has increased their charges to you since you started the design due to lower than expected quarterly/yearly volumes. The company they're contracting with may have also changed their tune since they originally developed the power supply unit and now may be asking for more money for it than they first were getting. Then there's the issue of fallout - if you have a design that fails spectacularly enough during testing that it can't be repaired, then you may have more scrap to factor in than the design should have. It could take a lot of engineering resources to redesign it to fix such issues, which may be either a personnel or monetary resource issue for either SS or the CM. BOM cost is one thing. The cost to deliver an assembled, tested, and working unit or sub unit is an entirely different thing.
I'm not trying to justify high costs for high profits, just trying to show that there are plausible reasons for such a high cost on this part. I do agree that I see a lot more posts about issues with the PP headstock than I would like to see. I also don't feel very comfortable with a design that the company feels it necessary to put language into the manual stating that if you are going to run it on a 220V circuit, then normal circuit breakers don't provide enough protection and you should hobble together your own separate OC protection device with 10 A fuses on each leg. That just seems so backward and leads me to believe that they have done some poor design (or possibly poor quality of design testing prior to mass marketing) work when it comes to device protection on their AC front end. It really makes me think that this unit should be run with a full blown power line conditioner to really baby the power circuit and make it last.
Thanks. I was just speculating based on my experience. The reality is that none of us really know Shopsmith's supply chain, or at least no one has posted about it here yet. There are lots of reasons for why the PowerPro modules might be more expensive and you stated some good reasons for it. I believe what we do know is that Shopsmith didn't design or build any of the PowerPro internals. A company called StriaTech did that. So presumably the PowerPro version of Striatech's motor is a special licensed version that Shopsmith purchases for Shopsmith only, e.g. the power supply module and control/display module are custom just for Shopsmith. Since StriaTech is the OEM and because they sell their own line of DVR motors for DIY use or for their NOVA line of tools or to sell to Rikon tools, we know that StriaTech has all of the volume manufacturing from these such that you can buy an entire DVR motor with power supply and controls for around $500 total. So, let's contrast that to Shopsmith charging over $2k for the equivalent, or a power supply module repair/replacement going for $350-500 from them. Of course the PowerPro for $2k also includes a full new headstock, so maybe not a 100% fair comparison, but hopefully you see my point. I am not saying that Shopsmith shouldn't charge a fair price to cover their costs and a reasonable profit, but when I hear of it costing close to $500 to replace just one module on the PowerPro it certainly gives me pause for considering to purchase it.
I haven't read the PowerPro manual, but with regard to doing inline fuses in addition to the circuit breakers that isn't an uncommon practice particularly for more sensitive electrical equipment. I wouldn't think less of the PowerPro because they recommend inline fuses on 240V in addition to the circuit breakers. The circuit breaker is there to primarily protect the wiring in the house in the case of an overload. Inline fuses are for the sole purpose of protecting the equipment connected to that circuit.