They produce Shopsmiths! Where the parts were made never mattered if they were made to a good spec. Can he save any money at the current low volume? I don't know. Almost everything can now be made at the lowest cost by a specialty producer with modern machinery that minimizes costs and can perform customization at low volumes. Not everything is made that way though and it only works if you want the kind of parts those machines can make. Working that out is the kind of engineering work that lies ahead for Nick.RFGuy wrote: ↑Tue Oct 31, 2023 3:31 pm I agree that Shopsmith doesn't have to do everything internal...many companies don't these days. However, that just increases the final product cost significantly as you have to pay margin on top of unit cost for everything you outsource. Realize he may want to reduce costs by eliminating costly machinery, but then as you do so you have to start asking what actually is it that Shopsmith produces anymore?
Which part has you confused? I would personally pay for insurance for a product with poor reliability and longevity, not for reliable long lasting products. I don't want to stay prepared to shell out 1400 bucks is smoke starts coming out of a headstock. Were you asking about a service contract on the whole machine for commercial users? Businesses want a known cost for the lifetime of a machine they purchase.Are you sure about that last point? Really, you want to pay a service contract every year as an insurance policy on a product with a track record of poor reliability and longevity? Service contracts are like printing money for businesses as they often recoup far more than they spend to maintain them. They also love have guaranteed revenue they can count on every year. I would prefer that weak components be re-engineered and/or costs brought down more in line with what other manufacturers are paying StriaTech for similar components on that DVR motor.
Obviously the company needs to take in more than it spends on service contracts, that how all insurance works. And that's how many companies now offset the low margins and high costs of producing their products, and the high quality support services we want them to have. Like anything else it has to priced attractively and provide the service and support customers want.