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

[Attila Kinali]

On Tue, 24 Oct 2006 16:08:55 -0400
"Timothy Miller" <theosib at gmail.com> wrote:

> 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 make the standard mistake of an engineer.
You shouldn't start from the raw parts costs and calculate
the endprise according to that. But rather start from what
the customers are willing to pay, substract H to F and C,
what is left has to cover D, B and A.

If it doesn't cover what you estimate, then we have a problem.
If it does cover and we have some money left, that's our profit.

This way you also have a better idea whether OGD1 will be
economicaly a success or not.

			Attila Kinali

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