[Open-graphics] Price breakdown for OGD1 (and other hardware products)

[Jesper Juhl]

On 24/10/06, Timothy Miller <theosib at gmail.com> wrote:
> We're working on pricing for OGD1, and we have some ideas, but we
> thought we might want to discuss this on the list to see if anyone
> knows the economics of it better than we do.
>
> I'm not going to discuss OGD1 itself.  Although we have some good
> estimates on things, we have no solid quotes for continuous supply of
> parts, fabrication, etc.  Instead, let's just keep this in the
> abstract.
>
> Here are some factors that we thing we need to account for in pricing
> the product:
>
> A: Raw parts cost
> B: Engineering costs (design, testing, etc.)
> C: Other handling costs (overhead, packaging, etc.)
> D: Failure rate buffer (bad boards, warranty returns, etc.)
> E: Maximum discount
> F: Manufacturer profit
> G: Wholesaler profit
> H: Retailer profit
>

I think you've forgotten marketing/advertising costs.

-- 
Jesper Juhl <jesper.juhl at gmail.com>
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