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We've had some costs that could be considered R&D. Minimal cost for experimenting with different stepped attenuators. More significant costs for developing the case for the new integrated and for prototyping the new Cubes - new drivers and birch-ply cabinet options. Those costs get factored into our overall financial planning. However, our biggest 'hit' to cashflow is the upfront cost of having items made in sufficient quantity to achieve a realistic unit price.Lindsayt wrote: ↑Wed Jun 01, 2022 10:13 am If we take NVA as an example. The cost of the initial R&D would have involved Richard trying various designs, listening to them, trying something different, listening etc etc. I get the impression that he never incorporated these costs into the selling price of NVA. Effectively the R&D was seen as a personal hobby / passion / interest and the costs were written off and Richard never directly compensated himself for this time and materials cost.
In the post Richard Dunn era, it seems that this approach has been carried on?
For someone like a Richard Dunn or a Colin Wonfor or a Les W - going into the design of an amplifier, they have so much expertise already that we're not talking about a lot of R&D. They know what they're doing. And it's just a case of going ahead, making what they think will work well, listening to it and going into production if it's good enough for the price.
If a company were to claim that they needed a huge amount of R&D for a minimialist hi-fi product, then I'd be questioning the expertise of the designer. Or his sanity.
For something like a Devialet, I can see why they had upfront R&D costs.
When the Linn Keel came out, there were people on forums saying that the high price was a reflection of the R&D. Seeing as it was produced by a company that had been selling mechanical engineering products for over 30 years, with claims that they were the best in the world at what they did, they should have so much mechanical engineering expertise that coming up with the Keel would be a piece of cake.
