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Per Westermark
02/19/12 08:53
Read: 408 times

#186050 - Depends too much on product and product value
Responding to: Andy Neil's previous message
My view of "high volume" is more related to money.

One million stamps is not so much. Only limited editions would not manage that volume.

One million high-end DSLR is way more than one million cheap camera-mobiles.

A company that sells 1k cat-scan equipments over a 10-year period would most definitely see that as high volume, since they would be fighting for market leadership.

A company that sells 1k lamp timers/year would better do something else - their lamp timers are obviously not a market success. And the volume is too small to really press the production costs.

In the end, "high volume" is also a question of risk. Do the volume represents a large percentage of the company income? What would be the implication if 10% (or 1%) of the units is found to be defective and needs to be replaced?

A company that sells 100 different models of shoes don't much care if one of their models suddenly stop selling. A company who have one single item on the market would care alot. So their view on "high volume" would differ, because of the different effects if that volume changes in size.

General Electric don't need to sell many nuclear reactors before they have a "high volume" of sales or the market.

In the end, the word "only" have to be selected based on the original expectations. If the plan was for two million cameras, then one million really is "only" one million. If the plan was for 100k cameras, then "only" would probably instead have been used in sentences like "if only we could have shipped faster".

I have been working with products where 50 installations is huge. And where every factory shipment was many k. So I just can't translate "high volume" into a number. A pilot installation of one product can contain more units than another product is likely to sell in a year.

List of 34 messages in thread
So what does "high volume" mean to you?      Andy Neil      02/19/12 02:42      
   1 million sales      JecksonS Ben      02/19/12 04:46      
   Depends too much on product and product value      Per Westermark      02/19/12 08:53      
   In the cellphone market? Millions.      Christoph Franck      02/19/12 10:07      
      50k?      Rob Klein      02/19/12 16:18      
         Report a bug and see what happens:      Christoph Franck      02/20/12 06:02      
            No help from SiLab technical support      Bert Van Den Berg      02/20/12 12:30      
               unusual or changed or ....      Erik Malund      02/20/12 12:47      
                  Response from local distributor      Bert Van Den Berg      02/20/12 17:56      
            Shouldn't be the case?      Andy Neil      02/20/12 16:22      
               It's probably a risk vs. reward thing.      Christoph Franck      02/21/12 00:59      
                  but, at least        Erik Malund      02/21/12 07:33      
               Alas so huge amounts of false bug reports to support      Per Westermark      02/21/12 03:22      
                  a valid point      Erik Malund      02/21/12 07:38      
                     Not so sure about bigger companies have better skills      Per Westermark      02/21/12 08:32      
                     it's difficult to provide persuasive evidence      Richard Erlacher      02/21/12 08:38      
                        to prove a chip defect        Erik Malund      02/21/12 08:54      
                           I'm guessing this happens because of slow response times ...      Richard Erlacher      02/26/12 20:32      
                           I see it from a different angle ...      Richard Erlacher      02/26/12 20:32      
                  RE: huge amounts of false bug reports      Andy Neil      02/21/12 15:54      
                     That's why bug reports must be accompanied by evidence      Richard Erlacher      02/26/12 20:37      
               I have twice had one such case      Erik Malund      02/21/12 07:26      
         that value      JecksonS Ben      02/22/12 01:12      
            Does anyone buy components at a "local" store.      Andy Neil      02/22/12 17:00      
               Not anymore ...      Rob Klein      02/23/12 05:29      
               seems to be the case in Farawayistan      Erik Malund      02/23/12 06:56      
                  Early silicon      Per Westermark      02/23/12 07:10      
                     even better      Erik Malund      02/23/12 07:55      
                  It was common in the U.S. to buy small quantities locally      Richard Erlacher      02/26/12 20:46      
               On-line      JecksonS Ben      02/26/12 23:38      
   High volume usually means low margin.      Christoph Franck      02/20/12 06:07      
      High volume means high profit      JecksonS Ben      02/24/12 01:01      
   Ask this question the mcu manufacturers.      Jan Waclawek      02/20/12 14:08      
   In terms of products:      Christoph Franck      02/21/12 04:28      

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