I'm thinking about selling complete DRO kits (with scales)...

Consignment or drop ship.

These are a couple of options that could work, but you need to do some work to set up.

For consignment, you work a deal with one or more vendors where you convince them that you can sell their product of you could stock it, you do serious testing and documentation to show they are reliable and create any configuration files.

You enter into a contract where they supply you with a limited stock to allow you to quickly collect, configure, test, and ship a set, and you then purchase replacements for what you sold.

I worked in a company owned Motorola service center, which is how the parts inventory was set up.

This allows minimal on-hand stock and investment.

You may be able to buy seed stock at a discount, too.

This would need a hard sell to convince the vendor that you have the ability to move products.

The drop-ship solution takes a bit more work, but over time, the work reduces.

You select specific units from specific vendors.

To be really cheap, you work with customers who have purchased these to get them mounted, configured, and tested.

From this, you create a collection of drawings and configuration data from your customers.

You market the DIY kit that is machine specific (if you already have the data). The invoice is one total cost paid to you.

You provide items that you source directly, then items like scales, you order and pay for these, and the end customer and shipping location is your customer.

The warranty is between the customer and the scale.

You placed the order so you confirm the product ordered is exactly what was used before.

The provided instructions and drawings are to install the equipment on the machine.

You pre-configure the equipment so it is plug and play.

This requires no upfront expense at a loss of some control.

You get set up to buy as a dealer so you get a discount rate, and customer can buy direct at retail if they want more.

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No offense, but if I could afford $1500-$2000 I'd just buy a dropro with cut to fit scales. Had those on my big lathe and mill and they worked great.
 
I've been getting a LOT of requests to sell complete DRO kits. I've mostly brushed them off, since the whole idea of TouchDRO was to let the customers choose the components. Today I had a conversation with a gentlemen that is warming me up to the idea (very slowly), but I'm curious to pick y'all brains if I may.
The benefit of me selling the whole kit is basically having "one neck to choke", so to say. In other words, the scales would be fully tested, etc. and if things didn't work, I'd take care of the issue.
The drawback will be the price (in a big way):
If I went with glass scales, I'd need to stock at least a dozen different sizes to cover the usual suspects (a few Bridgeport/clone sizes, various SIEG mills, etc.). I trust Ditron scales, so I'd probably stock those. My cost (ordering directly from Ditron in China) would be around $140/scale (scale price + shipping + 30% tariff) if I order 100 of each scale size or more. I would need to sell them for at least $200-$240 to cover the labor, storage, breakage, packaging, etc. A 3-axis kit will need to sell for close to $1000 + shipping (2-3x what similar Ditron setup sells). Not to mention that I'd be sitting on 100K$ worth of scales in some storage unit.

Another option are magnetic scales. I don't trust Chinese scales, so it would need to be Electronica/EMS or RLS. Both will cost me around $250-$300/piece shipped here, but I can get the magnetic tape in bulk, so the cash outlay is only 30K$ and they are easier to store too. I'd need to sell those for close to $500 piece, though. This would push a 3-axis kit into $1500 territory. For a commercial shot this is still pretty reasonable. The "big boy" scales cost close to $1000/piece and up, but for hobbyists this is pretty "up there".

I'm really wondering if there is even any demand for a "curated" TouchDRO kit for that price range. I think part of my problem is that price-wise my competition is stuff made in China. Both EMS and RLS scales run circles around Ditron and Aikron magnetic scales, but at 2x the price, and I have US-based expenses and taxes to deal with.

Curios to hear your opinions.

Regards
Yuriy
There is also an option to crowd fund, no? That would create your base inventory at volume purchase, You set up the multiple products on the back of the group buy-in and everyone is happy.
 
There are so many variations of machines and so many variations of machinists, just picture yourself on the phone talking pre-sale answering the same questions ad infinitum and handling the kind of post-sale tech support to help the bottom 10% to actually install these things on whatever random machine they have. You would have to like listening to long drawn out stories a lot more than I do.

What kills these kind of basically good ideas is the range of application variances and the quality of customers who would benefit from this business model...but wouldn't pay for it.

I suggest something else: Call DROPros and work out an OEM deal to supply them with your high value added stuff. Let them do the support while you enjoy life.
 
Another no go from me. I had a business and had to deal with too many people that couldn't tie their own shoes. Inventory is another killer. I like the idea of some sort of referral service and getting a bit of $ to keep up with that.
 
Agree with the DROPros baseline comparison. Even though the TouchDRO controller may be better, it's an impossible sale unless it's price comparable, including the cost of a tablet.

Stick to selling controllers...
 
I love my TouchDRO but buying a 1000-1500 setup would be a no go for me.
 
I've been getting a LOT of requests to sell complete DRO kits. I've mostly brushed them off, since the whole idea of TouchDRO was to let the customers choose the components. Today I had a conversation with a gentlemen that is warming me up to the idea (very slowly), but I'm curious to pick y'all brains if I may.
The benefit of me selling the whole kit is basically having "one neck to choke", so to say. In other words, the scales would be fully tested, etc. and if things didn't work, I'd take care of the issue.

Hey Yuriy

The single point of contact kit is a good value add as an option.

My first question would be do you have enough time in a day to deal with individual kit customers and develop the TouchDRO application? IMHO your core product/differentiator is the application and it should come first. Maybe additional staff to look after the scale side?

My second question would be what market do you want to serve with the kits? I would guess that in the commercial space you would be going head to head with the established players, including the one that's offering an app. on an iPad. The plus in that market is that the installation base would be limited to a small variety of full sized machines (BP/BP clones for mills) so a kit, including mounts which the customer would want, would be easier to set specifications on and stock. Those customers would not need hand holding and have the cash and identified need/payback to justify your value added - provided it was a good value proposition compared to the established players.


On the hobby side I would think that kitting would need to cover many more models so it would be very hard to do a full off the shelf kit.

For a full kit, what about tablets & mount arms? Customers, especially commercial may want the full meal deal.

For custom installation kits I think the most you should offer, to keep demands on your time under control, would be to require that the customer tell you what form factor/type of scale they want and the travel. Figuring that out including mounting suggestions could be explained on a web page along with providing the data sheets from your scale suppliers. Your responsibility would be to order to spec. and ship.

For scale supply chain you may want to consider having a distributor relationship with your chosen manufacturer(s) and ordering to each customer's requirement or perhaps weekly to save on shipping if volume is enough. Ordering per the customer's specifications gets the product off your shelf (overhead) and it gives the customer the value added that the scales are custom made to their order. I don't think the turn-around would be a show stopper if the customer knows they're getting custom scales.

Maybe there is someone that would like to partner with you to handle the scale side of the business?

D :cool:
 
Yuriy,
  • I guess you need to ask yourself who your target customer is.
  • Why you want to sit on inventory $$$ for minimal gain.
  • Do you want to compete with the established DRO guys.
IMO, You are a talented software/firmware developer and you will be farther ahead in quality of life and $$ if you stay in that mode.
What I would like to see is the DRO working with the Axis feeds. It would be great to set the axis feed rate from the DRO/HMI.
 
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