On 8/30/22 12:22 PM, Jim Brown wrote:
On 8/30/2022 10:46 AM, Lux, Jim wrote:
$100 retail price means the raw material cost should be ~$10-15.
Twenty years ago, the saying in pro audio was, "$200 for a box, $210
if you want it to do something." Add 20 years worth of inflation.
Yeah, when we were making simple electronic/electromechanical products
in the effects industry, 5x-10x BoM was the guideline.
That pays for assembly labor and testing, then margin for distributor,
margin for retailer, plus some squishyness for discounting.
It actually seems to work out fairly well, although obviously, there are
anomalous cases if you have a high level of integration in the parts on
the BoM (e.g. you're buying a computer board and basically just
packaging it in a box) or a "make it from iron and copper ore" kind of
scenario. But for stuff like you see in the HRO catalog or at DXE that
is small or medium scale production, you'll not be far off.
73, Jim K9YC
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