[waveformpc]

Update on some business plans...

Right now, I am designing a few computer systems, and have been talking to some folks at Crutchfield about getting my products in their magazine... One design is a "car computer", which basically functions as a navigation center, mp3 storage and playback, and DVD playback. It also has internet capability over both WiFi and GPRS (includes the card) so you can get real-time traffic information streamed to the GPS/nav program, and listen to radio webcasts via Napster. It also includes an XM satellite tuner. It's all integrated into a nice touch screen LCD display with specially designed voice activation system. The retail price of the complete unit is $2199.99 - While the average in-car DVD/mp3/nav costs between $1800-$2999, and doesn't include the ability to run win32 applications (car diagnostics, music downloads, internet transfers, etc.).

There will also be a second version of this system for police car interceptors. In some areas of the nation, police interceptors are embedding laptops into the car. I have also heard that some departments actually put a micro ATX case in the trunk of the interceptor and run the system from there... The departments have been paying around $6,000 per vehicle to intergate the laptop or mini ATX solution... My system design takes up the same amount of space as a car radio (the actual computer is that size), includes a touch screen LCD display, roll-up keyboard, and GPRS capability for $1999.99.

The second idea is a computer system specially designed for audio (at least that's the perception). The system is mid range, but the sound card is top notch 7.1 channel, and it includes a 7.1 channel GigaWorks speaker set (750watts). Technically, they could drop the speaker set altogether and hook the system up to an amplifier and use another brand of speakers (Bose, etc.), but I think the GigaWorks setup sounds pretty damn awesome. The unit also includes an LCD touch screen display for easy setup and configuration of equalizers, etc.. It will also include voice activation, remote control, and Napster (so you can download all of the latest songs and keep your collection up to date). The whole setup basically eliminates the need for a CD changer, and the audio processing via the sound card is actually better than most receivers. The size of the unit is roughly the same size of my current stereo receiver, so it doesn't appear to be the basic PC. The touch screen interface also allows one to lose that percption of "just another computer".

Now, all my business partners and I have to do is sell 500 of any combination of those two designs over the period of the year. If we do that, then that means we would gain a profit of $250,000 - All of which will go directly back into the business and advertising. We will expand the product line to include media center computers and mid to high range desktops/laptops.

The overhead cost for 500 units isn't very high at all. In fact, with 3 people, we can produce 500 units in 13 days (assuming 8 hours per day, with 1.5 systems per hour). Those three people would of course be me and my partners

We just plan on continuing that cycle, until we can afford to get some big time advertising (for intance, an ad in a big magazine costs $6,000 for a one month issue). The utlimate goal is to purchase a TV commercial

So, good luck to us, cause we're gonna need it

[insomnia]

Sounds like a good idea, setup a site soon.

[gemini_bwoy]

Im amazed at how fast you move from building PC to do this.
And also how quick you got back up ( after Pay-Pal push you down) and on to something new.
Im quite happy for you Robert and do, keep us updated

[waveformpc]

Originally posted by gemini_bwoy
Im amazed at how fast you move from building PC to do this.
And also how quick you got back up ( after Pay-Pal push you down) and on to something new.
Im quite happy for you Robert and do, keep us updated

Well, I decided to "move fast" rather than sit around and complain that the market is "saturated". While I was sitting there and doing that complaining, I always see new companies startup and have some sort of success within that "saturated" market. It happens all the time - You think it's completely saturated, but then here comes the next company up to bat...

I no longer believe in a saturated market, at least when it comes to disposable products like computers, which usually need to be replaced every 3 years or so (or in my case, every 6 months, lol). Just think, all of those people who just bought a Dell this year will end up needing a new computer in 2008/2009, and if I start now, hopefully I can steal at least a few customers

[mpnetwork]

Hey waveformpc,

What is your plan to sell the 500 units per year? What do you expect your customer acquisition costs to be?

[waveformpc]

Originally posted by mpnetwork
Hey waveformpc,

What is your plan to sell the 500 units per year? What do you expect your customer acquisition costs to be?

The only way I am going to be able to sell that many is through retail sources like Crutchfield, etc.. As is usually the case in business, I know there are 500 people out there who would be willing to purchase the product, but the problem is finding them.

Since we won't be doing any advertising for at least the first couple of sales, the cost to acquire new customers will be whatever the cost is to get our product into a sales magazine - that's the initial strategy. Then, as we see a few sales, we will begin advertising in magazines. We haven't decided on our other computer products, though, as to whether or not we should go retail with them. Obviously any dealing with retail could be seen as an acquisition cost, since you basically have to lower your prices to wholesale...

[Bscivolette]

If your system is as good as it sounds, state and government police should be dropping there current systems and picking yours up - government contracts and auto dealer contracts should be what your after.

[Killbox INC]

Sounds awesome, especially if you can get your products into crutchfield. When do you expect to go live with this? Keep us updated with the progress.