Boost Your Sales Price

Profit per Unit = Sales Price - Sales Cost - Production Cost

      Increase Sales Price
By 5%
Sales Price
Manufacturing Cost
Sales, R&D, Overhead
Profit per Unit
Profit per Unit Increase
 $100 
 $ 40 
 $ 30 
 $ 30 
  
 $105 
 $ 40 
 $ 30 
 $ 35 
 17%

The most important determinant of the total profit that you will earn from your electronic product is the sales price that your electronic product can command in the market. Net profit margins after deducting all manufacturing, sales, R&D, and overhead costs rarely exceed 30%. A small percentage change in your sales price has a greatly magnified effect on your profit per unit, your profit margin, and the total lifetime profits earned by your electronic product.

In the example to the right, each 5% increase in the sales price increases the profit on every unit by 17%, increasing the total profit the product will ever earn by 17%! How many other ways do you know to increase the total lifetime profits you earn from a product by 17%?

Your selection of a real time operating system and its associated software development tools is the decision that will have the greatest effect on the profits that you will ultimately realize from your electronic product. This is because the factors that affect the sales price of your electronic product have a greatly magnified affect the total profits you will earn from your electronic product. And the real time operating system and its associated software development tools that you select have a profound effect on the sales price of your electronic product, probably more effect than any other factor.

Higher Performance Enables a Higher Price

A higher performance product can be sold for a substantial premium over an otherwise identical product.

Our comprehensive suite of products and services can probably boost the performance of your electronic product by at least 20%. If a 20% performance boost can be translated into a 5% price increase for your electronic product, then the total profit that you will ever earn on your electronic product will increase by 17%!

Earlier Time to Market Enables a Higher Price

As technology advances, the price of an electronic product usually falls rapidly with time. If you get your product to market months earlier you can obtain a much higher sales price before competing products emerge that force price reductions. If prices are dropping at a rate of 40% per year, and you get your product to market 1 month earlier, you will be able to obtain a 4% higher price for your product for its entire life. This means that the total profits that you will ever earn from your electronic product will increase by 13%!

More Capability Enables a Higher Price

A more capable product with substantially greater functionality can be sold for a substantial premium over an otherwise identical product.

Our comprehensive suite of products and services can probably slash your electronic product's memory usage by 10%, your processor usage by 10%, and your development schedule by 10%. You can use the additional processor cycles, memory bytes, and programmer time to add 10% more capability to your product. If adding 10% more capabilities to your product can be translated into a 5% price increase for your electronic product, then the total profits that you will ever earn from your electronic product will increase by 17%!

Total Reliability Enables a Higher Price

A totally reliable product can be sold for a substantial premium over an otherwise identical product. Our comprehensive range of products and services can prevent the bugs, crashes, lock ups, and glitches that plague products developed with competing real time operating systems and embedded software development tools. Our real time operating systems and software development tools are used far more often than those of any competitor for the electronic systems that demand the highest reliability and security in the world: the avionics fly-by-wire systems of military and commercial aircraft, including Lockheed's F-35 Joint Strike Fighter. If increasing the reliability of your electronic product to the reliability required by supersonic jet fighters enables you to increase the price of your product by 5%, then the total profits that you will ever earn from your electronic product will increase by 17%!

These Benefits Are Cumulative

Our products and services can boost the sales price and net profits earned from your electronic product in many different ways: by boosting your product's performance, by boosting your product's capabilities, by boosting your product's reliability, and by slashing your time to market.

You don't have to choose between these benefits. Our products and services can deliver them all at the same time: a 20% faster, 10% more capable product, with the reliability of a supersonic jet fighter, available months earlier. Each of these advantages can increase your sales price by between 3% and 5%, and increase your total profits by between 13% and 17%. Combined together they can give your product an insurmountable market advantage that can probably justify a price increase of 10% to 15%, resulting in an increase in your total profits by between 30% and 50%.

The expected net profits earned from your electronic product must exceed your development costs in order to stay in business. So, our products and services may be able to increase your net profits by more than 30% of your development cost. With development costs of $150,000 per year per developer, our products and services can probably improve your programmer productivity by more than $50,000 per year per developer.

This analysis may seem incredible, but it certainly proves that you must make a very careful analysis of the effects of your choice of a real time operating system and software development tools on your financial success.

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