Report presented to PPC on return from visit to Lumatron, New York

  
 

OCRd Copy

  
 

PPC MEETING NO.59

 

LUMATRON

Lumatron give 15% discount to export agents (12½% to U.S.A. agents) and took up to 45% of total cost in manufacture. This leaves 40% to be split between -

  Development (10/15%)
  Overhead (10/20%)
  Profit (10/15%)

 

Overhead very little affected by shedding foreign sales. Let us suppose that overheads are reduced by 5% from the shedding of foreign sales and that Lumatron would have to give 25% discount for overseas sales in due course, thus the income from royalties would have to match the 25% contribution to profit, overhead and engineering. If we give a 6¼% royalty we would hare to sell four times as many as Lumatron could through an agent. If Lumatron are exporting, say, 50 p.a. at the moment, we would have to sell 200 p.a. to the world minus U.S.A.

 

DEVELOPMENT OF PLUG-IN SAMPLING UNIT

 

Time scale

  4 months design
  2 months debugging
  2 months approval
  3/4 months E.P.J.
  2 months approval
  4 months production       i.e. 13/18 months total

 

Cost

$20,000 to $35,000 for the design and production of one or two prototypes. This includes anglicisation. The E.P.J. run could consist of 5 or 10 units at loss than $2,000 each.

 

Production

For 100 off we would be charged time, plus material, plus profits, but no sales or development overheads, i.e. for a $1750 selling price we would be charged of the order of $1,000 to $1,200. Test and calibration is included in the cost.

Bill Buck could give mechanical services to ensure mechanical anglicisation and we could have an engineer on the spot to ensure component anglicisation.
 

TYPE 120 OSCILLOSCOPE

According to Gerard Leeds, temperature and humidity tests have been carried out and the instrument works over the range 0°C to 50°C.

Shock and vibration tests have not yet been carried out.

The cost of development of the Type 120 was approximately $200,000.

2

 

 
 
1963
 
1964.
 
1965
 
1966
 
1967
 
Total
 
Quantity
 
100
 
150
 
200
 
100
 
50
 
Turnover
 
£115K
 
£175K
 
£230K
 
£115K
 
£58K
 
Recoveries to Devt.
 
£11.5K
 
£17.5K
 
£ 23K
 
£11.5K
 
£5.8K
 
£69.3K
 
7% Recoveries
 
£8.05K
 
£12K
 
£16K
 £8K 
£4K
 
£48K
 
Minimum assuming
new products
 
£8K
 
£12K
 
£16K
 £16K 
£16K
 
*£68K
 
Suggested
minimum
 
$20,000
$25,000
 
$30,000
$37,500
 
$40,000
$50,000
 
$40,000
$50,000
 
$40,000
$50,000
 
* $200,000 devt. is £70K approx.
Lumatron expect a considerable drop off in sales of its Type 120 in 1965
H. V. BECK
 16.4.63
  
6c