Head Tracking with Cliffs of Dover

[swiss]

Originally Posted by adonys

Also, if you may find the comparison forced, we can analyze just the TrackIR itself: NP are selling the product mostly online, which means they can't pay more than 20% for the online seller. The usual profit rate for a good business is somewhere at 10%. Let's cut NP a slack and allow a 30% profit. I doubt that the hardware required for a TrackIR exceeds 10-15 euros, which would be roughly around 10% from the selling price. Do the sum, and you'll get 40% for.. what? drivers and sowftare and research? in a 5th generation product, which only evolved from hardware's point of view? The real price of TrackIR should not exceed 50-60 euro.

Your employer should pay you in percentage instead of dollars.

In fact I think the hardware of TIR is about $10 including the cap.
But there is still marketing, development(salaries), rent for office/warehouse and production facility setup - your supplier doesn't make the molds for free, you are aware of that, right?


Let's do some calculations on numbers I have and a good bunch of guessing:

Judging by serial numbers of Tir 5, they sold at least 30k units in 09/10.
I got serial 120xxx and I read about 160xxx.

Now let's look at the euro reseller prices:
€145, minus tax €116.
Margin: Your 20% are wrong for sure, that's nowhere enough unless it's a huge amount. A reseller takes 30-40, specially if it's a unit with low sales numbers. NP can probably wholesale sell it for 60, maybe 70 euros.

USA: best guess $70-80


Reseller vs NP e-shop: Judging by the members on NP forum, I would say 70% bought from a reseller.


Units USA vs rest the world: I have no numbers, so lets merge $ and € prices and take (high) $80 as an average reseller price.


70% go into wholesale @ $80= 21k*$80= $1.6mil
30% direct= 10k*150= $1.5mil

3 millions - wow, to pay all the crap I listed at the beginning?
But wait: That is for 2 years, so we're down to 1.5/y.
1.5mil equals a shop with 3 to 4 employees...
Even better: Cut that in half, because it's sooooo overpriced.

In case anyone has additional info, like higher or lower serials, proof of margins or the like, please post here.