sirhc wrote:Umm the only issues we have is the fact that we were repairing OLD units far beyond the warranty period. Each year we operated the # of units sent in for repair grew exponentially. And since we repaired units at an average loss of $50+ this made no sense. If we charged enough to break even or profit then repair made no sense, there simply is not a lot of profit on the units. Our gross profit margin via disti sale is approx. 20%+/- depending on model as we build in North America verses say China which our competitors build in so we have to price to market. SO on most switches if we repaired it at a loss of $50 that is our profit from the original sale.
If you charged in advance for the privilege of returning an out-of-warranty unit for evaluation, could you make a profit?
You have (at least) two costs:
1. unboxing a returned unit, setting it up on a test jig, deciding what the repair will cost and logging that figure to the RMA portal.
2. doing the repair or disposing of the scrap should the unit not be economically repairable.
I would be more than happy to pay something in advance for the privilege of returning out-of-warranty units and having you tell me if they are economically repairable. And if I paid a fee in advance to return a unit for evaluation, I'd be careful about which units I returned!
What would that fee have to be for this to be a profitable business for Netonix?