What can I learn from this?

[ycroosh]

In my [not so humble] opinion, one of the main features of TouchDRO is that I don't sell it as a package. I.e. the TouchDRO box itself is proprietary (well, ignoring the fact that I make a slighly downgraded firmware available for free). The tablet and the scales are widely available on the open market, so people don't have to pay for an unnecessary layer of middle man.

I get at least 2-3 emails per week along the lines "I would buy TouchDRO if you sold a package". I'm sure that 95% of those people would not buy a package if I sold it for a price that would make sense for me. Here is a very quick "back of napkin" estimate for how much it would cost:
Galaxy Tab A9 Plus is on sale for $170 right now almost everywhere. To buy one, install and configure TouchDRO and resell it, I'd be adding the following:
$40 (a bit under %25 for breakage/losses/warranty replacements; same as a "performance plan" at BestBuy, etc.)
$90 labor for google account setup, initial configuration, TouchDRO installation, and configuration, and repackaging
$100 markup for this to even make any sense for me to bother with
$21 in extra credit card transaction fees (around 5% of $420)
This gets us to $420, and these are VERY conservative numbers.

A Ditron glass scales for an average milling machine would cost me about $120/piece on average (depending on the length) if I order them in 500 pcs. increments. This includes shipping from China, 30% tariff, etc.
Again, add the following:
$30 "performance plan" (breackage/warranty/losses)
$20 for storage, insurance, etc - 500 scales take up a LOT of space...
$100 markup (at least; I just tied up 60K$ in this inventory...)
This brings us to $270 per scale.

If you do the math, a kit for an average mill will cost:
$810 for the scales, $420 for the tablet, and $300 for TouchDRO - $1530
Add 5% on average for transaction fees (that the customer pays) + $75
Add $100 for shipping - the box is oversized, and I'm adding insurance
Total - $1700

This same kit if you bought it a-la-carte:
Tablet - $170
TouchDRO - $300
Scales - $450 (same high quality Ditron scales)
Total - $920

In other words, you would be paying $780 to save 2-3 hours of your time, and have "one neck to choke". Would someone pay that - sure. But something tells me I'd be selling the 500 scales I just got from China for the next decade...

I can make the numbers work for Ditron magnetic scales because the closest thing you can buy in the USA are EMS scales, and those start at $250+. If (and this is still a big if) the custom Ditron scales work out to have equivalent performance, there is enough room for me to charge a price that makes sense to me, and to the customers. Since my "special" configuration is custom - Ditron doesn't sell their scales that way, I don't have to compete with Chinese scales. At least that is what I'm betting on. I still don't expect that many people will be buying full kits. I'm still going to recommend glass scales, except where they don't physically fit.

Regards
Yuriy

 

[mfendley]

In my [not so humble] opinion, one of the main features of TouchDRO is that I don't sell it as a package. I.e. the TouchDRO box itself is proprietary (well, ignoring the fact that I make a slighly downgraded firmware available for free). The tablet and the scales are widely available on the open market, so people don't have to pay for an unnecessary layer of middle man.

I get at least 2-3 emails per week along the lines "I would buy TouchDRO if you sold a package". I'm sure that 95% of those people would not buy a package if I sold it for a price that would make sense for me. Here is a very quick "back of napkin" estimate for how much it would cost:
Galaxy Tab A9 Plus is on sale for $170 right now almost everywhere. To buy one, install and configure TouchDRO and resell it, I'd be adding the following:
$40 (a bit under %25 for breakage/losses/warranty replacements; same as a "performance plan" at BestBuy, etc.)
$90 labor for google account setup, initial configuration, TouchDRO installation, and configuration, and repackaging
$100 markup for this to even make any sense for me to bother with
$21 in extra credit card transaction fees (around 5% of $420)
This gets us to $420, and these are VERY conservative numbers.

A Ditron glass scales for an average milling machine would cost me about $120/piece on average (depending on the length) if I order them in 500 pcs. increments. This includes shipping from China, 30% tariff, etc.
Again, add the following:
$30 "performance plan" (breackage/warranty/losses)
$20 for storage, insurance, etc - 500 scales take up a LOT of space...
$100 markup (at least; I just tied up 60K$ in this inventory...)
This brings us to $270 per scale.

If you do the math, a kit for an average mill will cost:
$810 for the scales, $420 for the tablet, and $300 for TouchDRO - $1530
Add 5% on average for transaction fees (that the customer pays) + $75
Add $100 for shipping - the box is oversized, and I'm adding insurance
Total - $1700

This same kit if you bought it a-la-carte:
Tablet - $170
TouchDRO - $300
Scales - $450 (same high quality Ditron scales)
Total - $920

In other words, you would be paying $780 to save 2-3 hours of your time, and have "one neck to choke". Would someone pay that - sure. But something tells me I'd be selling the 500 scales I just got from China for the next decade...

I can make the numbers work for Ditron magnetic scales because the closest thing you can buy in the USA are EMS scales, and those start at $250+. If (and this is still a big if) the custom Ditron scales work out to have equivalent performance, there is enough room for me to charge a price that makes sense to me, and to the customers. Since my "special" configuration is custom - Ditron doesn't sell their scales that way, I don't have to compete with Chinese scales. At least that is what I'm betting on. I still don't expect that many people will be buying full kits. I'm still going to recommend glass scales, except where they don't physically fit.

Regards
Yuriy

All very good points, and I think you made my point for me. If you offered everything as you did in your post above at those prices, I agree with your prediction that you would see little to no packages. The point of the exercise is to show that the tablet is not included in the base price, and how much the customer is saving going the DIY route.

I think most people realize this, but you are addressing the minority who don't have the wherewithal do do the simple calculation you performed above.

In this day and age, where a significant portion of the population have what used to pass for common sense, the simplest solution is to maintain your practice as-is, and ignore the comments that you know will occur occasionally.