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What does "Budgetary Pricing" really mean when it comes to suppliers like maxim



All the main chip suppliers such as Linear Technology, Maxim, etc have their components listed with "Budgetary Pricing" so that you can compare chip prices equally.

However, since you can buy a complete DVD player for $30 I doubt most manufacturers would be paying even close to the "budgetary pricing" figure.

I wonder if the designers out there can tell me what % of the budgetary price you actually pay as a ballpark figure? Obviously the bigger the buyer the better the bargaining power, but say you are going to Maxim with a total $30,000 USD order. What bargaining power do you have?

50% of the "budgetary" price?  10% of the price?

Budgetary pricing is usually for a standard volume like 1000.
Once you get into the hundreds of thousands then you start wheeling and dealing.
Many companies will also have special purchasing agreements in place with manufacturers.
Real high volume design is a bit of an art, and often it's a matter of sourcing gray market components and cheap substitutes etc.



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