Author Topic: How come this board is so cheap?  (Read 28359 times)

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Offline zaptaTopic starter

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How come this board is so cheap?
« on: January 06, 2014, 06:45:50 pm »
I am looking at this board, 3 USD in quantities of 1, shipped to the US.  There are other sellers for about the same price.  Sparkfun sells a similar one for X3 + shipping.  How come? Should I expect lower reliability? Incompatibility? Other problems?

http://www.ebay.com/itm/Arduino-PRO-MINI-ATMEGA328-5V-16M-MWC-avr328P-Development-Board-/271251071444?ssPageName=ADME:X:AAQ:US:1123

Here is the sparkfun version

https://www.sparkfun.com/products/11114
 

Offline Bored@Work

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Re: How come this board is so cheap?
« Reply #1 on: January 06, 2014, 07:05:45 pm »
That's China for you.

Cheaply produced, under working conditions that might or might not be exactly legal in western countries. From cheap parts obtained from strange sources. By workers paid little compared to western countries. Maybe in a ghost shift. And with a postal service/shipping service that must almost literally ship small packages nearly for free. Oh, and typically excessively wrapped in bubble wrap. The value of the bubble wrap might make up half of the total value.
« Last Edit: January 06, 2014, 07:08:37 pm by Bored@Work »
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Offline jaxbird

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Re: How come this board is so cheap?
« Reply #2 on: January 06, 2014, 07:18:36 pm »
That's China for you.

Cheaply produced, under working conditions that might or might not be exactly legal in western countries. From cheap parts obtained from strange sources. By workers paid little compared to western countries. Maybe in a ghost shift. And with a postal service/shipping service that must almost literally ship small packages nearly for free. Oh, and typically excessively wrapped in bubble wrap. The value of the bubble wrap might make up half of the total value.

IMO it's naive to think that Sparkfun doesn't get their boards from exactly the same source as the Chinese ebay seller.

They just have a brand that allows them to make more profit.

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Offline tszaboo

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Re: How come this board is so cheap?
« Reply #3 on: January 06, 2014, 07:38:38 pm »
IMO it's naive to think that Sparkfun doesn't get their boards from exactly the same source as the Chinese ebay seller.

They just have a brand that allows them to make more profit.
I think it is the same source. They probably just forgot to turn off the soldering machine, and made some thousand extra.
I'm actually suprised, that it costs 3 dollars. There is basically nothing on that board.
 

Offline BBQ

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Re: How come this board is so cheap?
« Reply #4 on: January 06, 2014, 07:42:07 pm »
That's China for you.

Cheaply produced, under working conditions that might or might not be exactly legal in western countries. From cheap parts obtained from strange sources. By workers paid little compared to western countries. Maybe in a ghost shift. And with a postal service/shipping service that must almost literally ship small packages nearly for free. Oh, and typically excessively wrapped in bubble wrap. The value of the bubble wrap might make up half of the total value.

IMO it's naive to think that Sparkfun doesn't get their boards from exactly the same source as the Chinese ebay seller.

They just have a brand that allows them to make more profit.

And some manual labour in the US during packaging and shipping which adds a lot to the price compared to a Chinese seller.
 

Offline DavidDLC

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Re: How come this board is so cheap?
« Reply #5 on: January 06, 2014, 07:43:00 pm »
Or maybe change your question and ask:

How come this board is so expensive at Sparkfun ?

David.
 

Offline rdl

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Re: How come this board is so cheap?
« Reply #6 on: January 06, 2014, 07:48:45 pm »
I've always wondered how somebody in China can sell an item with shipping included for less than I could mail the same package across town. After all, it's the same USPS that transports the package once it enters the US. It's not like we have Chinese mailmen running around everywhere.
 
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Offline don.r

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Re: How come this board is so cheap?
« Reply #7 on: January 06, 2014, 07:54:24 pm »
I am looking at this board, 3 USD in quantities of 1, shipped to the US.  There are other sellers for about the same price.  Sparkfun sells a similar one for X3 + shipping.  How come? Should I expect lower reliability? Incompatibility? Other problems?

http://www.ebay.com/itm/Arduino-PRO-MINI-ATMEGA328-5V-16M-MWC-avr328P-Development-Board-/271251071444?ssPageName=ADME:X:AAQ:US:1123

Here is the sparkfun version

https://www.sparkfun.com/products/11114

I'll let you know as I bought 3 yesterday.
 

Offline tszaboo

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Re: How come this board is so cheap?
« Reply #8 on: January 06, 2014, 07:59:05 pm »
I've always wondered how somebody in China can sell an item with shipping included for less than I could mail the same package across town. After all, it's the same USPS that transports the package once it enters the US. It's not like we have Chinese mailmen running around everywhere.
They can make indistinguishable electronics. How hard is it to print a stamp?
I had orders from ebay (buy it now) which had more stamp on it than what I payed.
 

Offline Bored@Work

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Re: How come this board is so cheap?
« Reply #9 on: January 06, 2014, 08:03:02 pm »
They can make indistinguishable electronics. How hard is it to print a stamp?
I had orders from ebay (buy it now) which had more stamp on it than what I payed.

Or they just followed the advice that is often given to students here: You don't need that math and all that other stuff. All you need is passion.  >:D
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Offline pickle9000

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Re: How come this board is so cheap?
« Reply #10 on: January 06, 2014, 08:05:19 pm »
I picked up 5 of those last month, the one I used seems to work OK. It's always nice to have things like this in the parts box. Cant beat the price and they are tiny.
 

Offline pickle9000

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Re: How come this board is so cheap?
« Reply #11 on: January 06, 2014, 08:11:01 pm »
FYI It's my understanding the the Chinese govt subsidizes shipping to increase exports.
 

Offline romantronixlab

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Re: How come this board is so cheap?
« Reply #12 on: January 06, 2014, 08:15:35 pm »
I've always wondered how somebody in China can sell an item with shipping included for less than I could mail the same package across town. After all, it's the same USPS that transports the package once it enters the US. It's not like we have Chinese mailmen running around everywhere.

I have wondered the exactly the same thing.
Will think about it.
 

Offline zaptaTopic starter

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Re: How come this board is so cheap?
« Reply #13 on: January 06, 2014, 08:20:08 pm »
OK, I decided to take the 'risk' and ordered 3. 

I already have one from Sparkfun and it is very useful. I wish they would have a version with header holes half chopped so I can solder it directly to a PCB, without headers.
 

Offline AndersAnd

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Re: How come this board is so cheap?
« Reply #14 on: January 06, 2014, 08:41:08 pm »
I'm actually suprised, that it costs 3 dollars. There is basically nothing on that board.
There's a ATMEGA328P-AU on it. With a reel of 2000 ATMEGA328P-AU, the unit cost is $1.94 at Mouser:
http://www2.mouser.com/Semiconductors/Embedded-Processors-Controllers/Microcontrollers-MCU/8-bit-Microcontrollers-MCU/_/N-a85ik?Keyword=ATMEGA328P-AU&FS=True

A single ATMEGA328P-AU cost $3.36 + shipping at Mouser, that's more than they charge for the whole board including worldwide shipping.

Besides the ATmega328P there's 1 LDO, 1 resonator, 1 push button, 2 LEDs, 6 capacitors, 5 resistors, 1 PCB and some headers + the cost of assembly, handling and shipping.
Schematic: https://dlnmh9ip6v2uc.cloudfront.net/datasheets/Dev/Arduino/Boards/Arduino-Pro-Mini-v13.pdf

Btw. the Arduino Pro Mini ATMEGA328P board is sold even cheaper here: http://www.ebay.com/itm/360732394240
$2.83 including an additional 6-pin right angle header compared to the one mentioned by in the first post and this also has free shipping.

« Last Edit: January 06, 2014, 08:48:55 pm by AndersAnd »
 

Offline sleemanj

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Re: How come this board is so cheap?
« Reply #15 on: January 06, 2014, 08:46:57 pm »
I've always wondered how somebody in China can sell an item with shipping included for less than I could mail the same package across town.

It's even more surprising when you learn that the price for the pro-minis domestically in china (on Taobao) is about USD $2.5!  In fact, if you were in china and bought one unit only on taobao, by the time domestic shipping was added you'd probaby pay considerably more than somebody in the US would on ebay (of course it would arrive in a couple days instead of a month, but still)!
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Offline rdl

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Re: How come this board is so cheap?
« Reply #16 on: January 06, 2014, 08:49:47 pm »
Here's another example. I won't post anymore in order to avoid derailing the thread.

http://www.ebay.com/itm/1pcs-DC-DC-Buck-Converter-Step-Down-Module-LM2596-Power-Supply-Output-1-23V-30V-/251066005460

Go check the price of an LM2596 at your favorite vendor, then try to figure out how this sells for $1.73 with "free shipping".
 

Offline jwm

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Re: How come this board is so cheap?
« Reply #17 on: January 06, 2014, 08:55:21 pm »
That's China for you.

Cheaply produced, under working conditions that might or might not be exactly legal in western countries. From cheap parts obtained from strange sources. By workers paid little compared to western countries. Maybe in a ghost shift. And with a postal service/shipping service that must almost literally ship small packages nearly for free. Oh, and typically excessively wrapped in bubble wrap. The value of the bubble wrap might make up half of the total value.

IMO it's naive to think that Sparkfun doesn't get their boards from exactly the same source as the Chinese ebay seller.

They just have a brand that allows them to make more profit.

Usually what they add is quality control and customer support, which are fairly expensive relative to the raw cost of materials. For instance, the step of testing new flash memory costs several times more than the actual full production of the chip itself, skimping on the QC step can reduce the cost by an order of magnitude. It is not unusual to pass QC onto the reseller, but that is not always obvious from these direct sell ebay listings that you are getting straight from the production line pieces that need further testing. Fine if you are a hobbiest using a small handful you can characterize, not so much if you are integrating them into a million of some product.

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Offline DavidDLC

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Re: How come this board is so cheap?
« Reply #18 on: January 06, 2014, 09:05:51 pm »
Here's another example. I won't post anymore in order to avoid derailing the thread.

http://www.ebay.com/itm/1pcs-DC-DC-Buck-Converter-Step-Down-Module-LM2596-Power-Supply-Output-1-23V-30V-/251066005460

Go check the price of an LM2596 at your favorite vendor, then try to figure out how this sells for $1.73 with "free shipping".

When I was in China I bought several of them at $0.25 USD a piece.
 

Offline tszaboo

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Re: How come this board is so cheap?
« Reply #19 on: January 06, 2014, 09:24:11 pm »
Go check the price of an LM2596 at your favorite vendor, then try to figure out how this sells for $1.73 with "free shipping".
Because they made their own version LM2596 and you pay a little more* at warehouse vendors.

*several times the price
 

Offline Alphatronique

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Re: How come this board is so cheap?
« Reply #20 on: January 06, 2014, 09:25:26 pm »
Hi

yup maby Digi-key or arrow make lot of money sell us part

or that chiness have some trick that we not knot ,i run myself a assembly house
and even if labor cost noting ,build and run a assembly line still cost money (maintenance ,electricity etc etc )

and it sell board for less that price off the main part alone  ,how do it do that ?

ok it sold 16,000 unit but still not a volume that justify that price

only thing i see was   
1-) got part from very strange source

2-) that all come from same giant fab that build hundred of different design in million QTH
     and it Global buying volume make that possible  ,if you order 1 million of LM2596 for customer X you may
     add 15,00 extra for that ebay smaller run .... and got it a the million price

but did it wort the money/Trouble to sell something whit less that 1$ profit ? :palm:

 
« Last Edit: January 06, 2014, 09:31:17 pm by Alphatronique »
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Offline zaptaTopic starter

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Re: How come this board is so cheap?
« Reply #21 on: January 06, 2014, 09:38:18 pm »
Just found this on ebay. $3.5 for 20 soic 8 adapters, shipped and taxed. I payed almost double than that at a local store  for a single adapter.

http://www.ebay.com/itm/20-PCS-SOP8-SO8-SOIC8-SMD-to-DIP8-Adapter-PCB-Board-Convertor-Double-Sides-244A-/171038348049?pt=LH_DefaultDomain_0&hash=item27d2ae1311

I love China.
 

Offline pickle9000

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Re: How come this board is so cheap?
« Reply #22 on: January 06, 2014, 09:48:47 pm »
Wow that's really good. Sold and thank you.
 

Offline dannyf

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Re: How come this board is so cheap?
« Reply #23 on: January 06, 2014, 10:01:54 pm »
"aby Digi-key or arrow make lot of money sell us part "

They do: mark-up on one-off orders is like 100 percent. Plus, they make money off shipping too.
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Offline dannyf

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Re: How come this board is so cheap?
« Reply #24 on: January 06, 2014, 10:05:00 pm »
"MO it's naive to think that Sparkfun doesn't get their boards from exactly the same source as the Chinese ebay seller."

That 7 usd extra you paid when buying from sparkfun also buys you the previlige to be ripped off by sparkfun - something some of us apparently thought worth buying.
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