Oscillators have become indispensable in modern technology. They are the core component that makes RF engineering possible, and are crucial to cell phones, Wi-Fi, GPS, and so much more.
The modern interconnected economy and daily life as we know it would grind to a halt if crystal oscillators were not abundant, well designed, and reasonably affordable. But what determines oscillator pricing?
The 3 P's of Oscillator Pricing
As a general rule, cost drivers in any field of engineering can be split into three categories:
1. Physical
This refers to the physical dimensions and characteristics of a given component or device that is designed, developed, and deployed for an engineering application. Things like size, weight, material composition, availability of select materials, etc. would be considered physical cost drivers.
2. Program
This term applies to the unique requirements and restrictions of the program or project. Examples could be schedules, deadlines, delivery dates, transportation requirements, order quantity, and frequency of orders placed.
3. Performance
Performance may be arguably the most significant driver of cost in engineering. Generally speaking, a system or component with a higher level of performance is going to cost more to design, build, and implement. This is especially true for projects that need a high level of customization or additional research and development for the product to meet performance requirements.
Whether you are designing a laptop, a stealth fighter, a 5G network, or an advanced radar system, these will be the three categories of cost drivers that impact your project. RF engineering is no different, and these cost drivers are also at work when determining oscillator pricing. Let’s examine how these categories apply to oscillators in more detail.
Basic Questions
There are some fundamental questions any project or commodity manager needs to ask themselves before placing an order. We’re focusing on crystal oscillators here, but the same principles apply to any product.
- How many units do we need?
- What type of oscillators do we need?
- What are the most important performance benchmarks for this project? Is our primary concern reducing phase noise, or keeping power use to a minimum?
If you're on a search for a great crystal oscillator supplier, here are 3 powerful questions to ask potential suppliers to help you find the best choice.
Related: 3 Reasons to Order OCXOs in Large Batches
It All Begins with Design
An oscillator by itself serves no purpose. It's always going to be integrated into a larger design for each application. It only makes sense then that one of the most significant cost drivers for oscillator pricing is the degree of work that must be put in at the design stage. If the new design requires special materials that cost more than traditional ones, that will affect oscillator pricing as well.
Of course, that new design will also need to be tested and put through effective design reviews to ensure that it meets quality standards and performs as desired. Simply put, the more R&D a project requires, the more costs may increase.
If the application can make use of an oscillator design that is ready to go right off the shelf, costs will be lower than if it needs to be modified to meet very specific standards or performance metrics (signal stability, phase noise, etc.) or if a new design must be made for that order. One way for RF engineering firms to reduce costs for their clients is to simply design and offer a wide range of high-quality, low-cost products in the first place.
Related: Crystal Oscillator Manufacturers & RF Technology Best Practices
Maximize the ROI of Your Oscillators with Bliley
We take pride in designing the best oscillators money can buy. Whether you want a turnkey RF solution that’s ready to use or a customized design tailored to your needs, we’ve seen it all and done it all. After nearly a century in the industry, we have an intimate understanding of the factors that drive oscillator pricing, and we know how to give our customers the maximum ROI.
Explore our selection of world-class, low phase noise oscillators, and see what our 90+ years of design experience can do for you.
