Quote:
Originally Posted by jake01
I dunno people; correct me where I am wrong.
Research: I don't know how much money is spent here; but I think it is not a lot, especially for second and third generation versions of the product line.
Parts: Do they even add up to a quarter/third of the sale price? For mass-produced equipment, they are sourced in bulk, right?
Assembly: I am sure (most of) these products are not assembled by hand, are they? They're just printed circuit boards soldered by robots (?). I am guessing only a part of the physical assembly process is done by hand.
Marketing/Packaging: Teensy bit, I am sure.
Shipping: Generally mentioned and charged separately from the sale price of the product.
Profit: You tell me.
Well, if 'audiophiles' are willing to pay more, then why the heck not. *shrug*
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Don't forget:
Testing: someone has to make sure the products work as intended and ensure that none of the new units fail to work properly. Not only that but if your defective unit rate is 1/100 that is going to increase the costs for the other 99.
Support/Warranty: someone has to answer questions and make repairs when there are failures.
Storage: unless they're build to order you have to have room to store the parts and finished product until they are sold.
Assuming the company is big enough there are also recurring infrastructure costs, administrative staff, office supplies, power/water/trash, etc. If you are a high volume business then these may be small but a lower volume business (like selling headphone amps) could result in this being significant.
There are also other potential influences like, if they will be sold through a retailer/reseller, you will still need to make a profit and so will the reseller. Their profit will have to include some of the same factors (support, storage, etc.) as well as potentially covering their losses if some of the units remain unsold (assuming they bought them outright initially and there isn't some different arrangement). If there is no reseller/retailer then you have to include some of the costs of whatever your order system will be (whether it is web, catalog, etc.). Depending on the size of the company, volume of product sold, target audience, etc. there can be a lot of other costs that come in to play.
Ant