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df8m1

Open Source AAD

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df8m1

Now given that the AAD manufacturers know how much a new rig costs, (which one can not jump more than once without, and the jumper did pay for somehow), and knowing that the risk to the jumper's life "could" be reduced with an AAD, it could be argued that the AAD manufacturers have decided that profit is more valuable than a jumpers life.



Production costs being 10-15% of MSRP is pretty common. I think the issue is not "how much can we soak people for" it's more "how much do we need in order to to pay ourselves and stay in business each year".

Back on the canopy thing. Raw materials of $150, 10h of labor and a canopy being sold at $2500. Are all skydivers being taken advantage of or is that really the cost of doing business?

-Michael

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hackish



Production costs being 10-15% of MSRP is pretty common. I think the issue is not "how much can we soak people for" it's more "how much do we need in order to to pay ourselves and stay in business each year".

Back on the canopy thing. Raw materials of $150, 10h of labor and a canopy being sold at $2500. Are all skydivers being taken advantage of or is that really the cost of doing business?

-Michael



The cost of development of that canopy from napkin sketch to production product needs to be paid back as well.

Then there is the legal defense costs that are part of the business. I would love to sit down with some of the major manufacturers in the USA and ask them what their annual legal fees to defend themselves when some one goes in or is hurt.

The bottom line is the market will dictate the highest price that something will sell for. I like the philosophy of higher margins and lower volume.

It is very possible that when you add up the original development investment, legal, and overhead, $2500 may not be a bad deal. I know what I have to pay back from the AAD project and it is going to take a few years to do even with modest sales. Every one in the financial chain wants a piece, sometimes the pie just is not big enough and a business goes under.

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hackish

***Now given that the AAD manufacturers know how much a new rig costs, (which one can not jump more than once without, and the jumper did pay for somehow), and knowing that the risk to the jumper's life "could" be reduced with an AAD, it could be argued that the AAD manufacturers have decided that profit is more valuable than a jumpers life.



Production costs being 10-15% of MSRP is pretty common. I think the issue is not "how much can we soak people for" it's more "how much do we need in order to to pay ourselves and stay in business each year".

Back on the canopy thing. Raw materials of $150, 10h of labor and a canopy being sold at $2500. Are all skydivers being taken advantage of or is that really the cost of doing business?

-Michael

I imagine major canopy manf have a quite a bit more overhead than that. R/d, marketing, all those fancy laser cutters and sewing machines, facilities..... it's not like Leblonc is just building this stuff in his garage (anymore).
BASE 1384

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Halfpastniner

I imagine major canopy manf have a quite a bit more overhead than that. R/d, marketing, all those fancy laser cutters and sewing machines, facilities..... it's not like Leblonc is just building this stuff in his garage (anymore).



Quite in line with my point. I'm sure that cutter is more than $100k. I have more than $100k in electronics equipment and software licenses on my desk right now. All things that someone would need to develop and debug an AAD.

When you're running a business you get quite desensitized to big numbers. Once a customer saw at my garage that I had $30k in the account. He said "wow you're really doing well here". To which I shrugged, at months end $40k will be spent in bills and I don't know if I'm going to get paid this month.

I'm always happy to see people succeed because I know what sort of work it takes to get there. I think open source rigging tools or something like that would benefit the community, not this.

-Michael

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