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nuckolls.bob(at)aeroelect
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 Posted: Wed Feb 05, 2014 7:20 pm Post subject: Change of business model . . . |
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I was running short on several commodities and
checked back on how long the last replenishments
took to clear the shelves. It appears that I
could really use that cash and shelf space to
better advantage.
Back when Dr. Dee and I started merchandising
our work product and that of others, 50% of
our inventory rolled over about every 90 days.
90% in 180 days or less.
Now the roll-over is 3 to 4 times longer.
For low volume manufacturing to work at all,
it needs to be part of a larger stable of
activities that rolls inventory faster.
Before Dr. Dee finished her graduate work and got
a better job than I had . . . she took care
of most of the day-to-day activities on the
merchandising side. But she's busy with a
new job and my 'retirement' has been less than
free of opportunities to do what I do best.
As of this evening, I've closed the manufacturing
operations for the AeroElectric Connection. Return
on investment for the hammer-n-tongs operation is
poor compared to the writing/teaching/consulting
activities that have little overhead.
I'll continue to do the fun stuff (AeroElectric
List and seminars), get back on Revision 13
to the book, write for Kitplanes and exploit
some opportunities on the TC side of the house
as well.
I'm looking for a manufacturing operation that
would like to add current AEC original
designs to their stable along with a half dozen in
the wings that are stagnant simply because I
don't own/run a factory.
After current commitments are fulfilled, the
mechanism by which future product developments
are actualized will have to happen in somebody
else's shops.
Bob . . .
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jhausch
Joined: 14 Jan 2008
Posts: 35
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| Posted: Thu Feb 06, 2014 5:35 am Post subject: Re: Change of business model . . . |
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Bob,
This is a very interesting development. I expect this thread to go on for a while....
I work in distribution/sales for industrial automation. Occasionally we find ourselves in a situation where a standard product does not fit the customer need, so we'll design a little kit or combine some products and accessories together to meet the customers' needs. Usually those are one-off events; however, we sometimes find ourselves in non-ideal situations. Example 1: the customer either buys one or two every year for many years; small batch builds not being very profitable. Example 2: the customer buys many 10s or 100s and we find ourselves building kits more than selling new stuff.
Your situation in some ways reminds me of those challenges.
I just visited aeroelectric.com and could not find a listing of these items. I thought it might be under "Catalog of Products and Services", but I only see your publications there along with another note about the sale of the business. Is there a list / catalog of your many "solutions"?
Regarding the business sale.... do you want to sell the designs as a "lot", license the designs to a third party, license some designs and still manufacture some designs and only outsource distribution, etc, etc?
Perhaps you're waiting to see what the post/pronouncement brings...
I don't think I am the right man for the job, but I though fleshing out the discussion a bit would be beneficial for all.
Regards,
Jim
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toddheffley
Joined: 24 Mar 2010
Posts: 8
Location: Fort Worth Texas
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| Posted: Fri Feb 14, 2014 5:28 am Post subject: Re: Change of business model . . . |
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Bob
We are in exactly the same situation.
We provide a small volume of test equipment into a ultra specialized market.
www.av-ts.com
I have so much respect for the quality of your past work I would like to talk to you about your decision,
sales(at)av-ts.com if you would be interested in further conversation.
Todd
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_________________
WWW.toddheffley.com
www.theinterconnectco.com for lighting products
AV-TS.com for Jet Aircraft Test Equipment |
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nuckolls.bob(at)aeroelect
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| Posted: Fri Feb 14, 2014 10:34 am Post subject: Change of business model . . . |
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At 07:28 AM 2/14/2014, you wrote:
| Quote: |
<public(at)toddheffley.com>
Bob
We are in exactly the same situation.
We provide a small volume of test equipment into a ultra specialized market.
www.av-ts.com
I have so much respect for the quality of your past work I would
like to talk to you about your decision,
sales(at)av-ts.com if you would be interested in further conversation.
Todd
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Sure! What do you have in mind?
Bob . . .
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toddheffley
Joined: 24 Mar 2010
Posts: 8
Location: Fort Worth Texas
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| Posted: Mon Feb 17, 2014 9:31 am Post subject: Re: Change of business model . . . |
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Hmmm.
First of all, what are the items we are talking about?
The Open Source WigWag, Overvolage/Lowvoltage Module, a ground module that ties DSUB pins to a ground plane?
Such care has gone into these products that it seems a shame to let them die.
I would like to propose a Heath Kit - ish approach to saving these projects.
It seems that the real value is enabling "hands on" type builders to stretch their skill set by learning to solder/troubleshoot their own electronic hardware. The final outcome of, for example, having a working WigWag is only slightly valuable. The skill-set is what is actually the desired outcome.
I have no intention of taking on a labor of love, so this will need to generate a small amount of income per transaction. I am thinking a markup on complete kits including circuit boards, cases etcetera.
All data Open Source data, of course. Hopefully supported by some nice How-to videos....
Doesn't exactly sound like a get rich quick scheme.....
Also Bob, do I recall a glancing mention of a all-in-one SERVO/IMU/PROCESSOR for a wing leveler? Is there any development material there?
Todd
| | - The Matronics AeroElectric-List Email Forum - | | | Use the List Feature Navigator to browse the many List utilities available such as the Email Subscriptions page, Archive Search & Download, 7-Day Browse, Chat, FAQ, Photoshare, and much more:
http://www.matronics.com/Navigator?AeroElectric-List |
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_________________
WWW.toddheffley.com
www.theinterconnectco.com for lighting products
AV-TS.com for Jet Aircraft Test Equipment |
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nuckolls.bob(at)aeroelect
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| Posted: Mon Feb 17, 2014 1:56 pm Post subject: Change of business model . . . |
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At 11:31 AM 2/17/2014, you wrote:
| Quote: |
<public(at)toddheffley.com>
Hmmm.
First of all, what are the items we are talking about?
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All of the original AeroElectric Connection products and
about a dozen new ones will return. They just wont
be manufactured and shipped from here.
Discussions are in the works . . .
Bob . . .
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toddheffley
Joined: 24 Mar 2010
Posts: 8
Location: Fort Worth Texas
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| Posted: Mon Feb 17, 2014 6:28 pm Post subject: Re: Change of business model . . . |
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Great Bob! Glad to hear you have something going.
Don't let them beat you down at Cessna!
Todd
| | - The Matronics AeroElectric-List Email Forum - | | | Use the List Feature Navigator to browse the many List utilities available such as the Email Subscriptions page, Archive Search & Download, 7-Day Browse, Chat, FAQ, Photoshare, and much more:
http://www.matronics.com/Navigator?AeroElectric-List |
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_________________
WWW.toddheffley.com
www.theinterconnectco.com for lighting products
AV-TS.com for Jet Aircraft Test Equipment |
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