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

[Terry Hancock]

Attila Kinali wrote:
>  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.

Basically sound, except for one factor: a bigger market is itself 
"profit" when the product in question fuels your project (i.e. more 
hardware hackers means a bigger talent pool for this and future open 
hardware projects).

(This argues for keeping the price lower than if you were solely trying 
to make money selling OGD1 cards)

Of course, you can refine that by offering a "near cost" solution for 
known open hardware developers and a "near value" solution for the 
general market (the discount for OGP developers has already been 
mentioned, of course).

Cheers,
Terry

-- 
Terry Hancock (hancock at AnansiSpaceworks.com)
Anansi Spaceworks http://www.AnansiSpaceworks.com