The Economics of Selling Your (Audio) Project

[TMoney]

 

Dave over at the EEVBlog put up this informative post on the economics of selling niche electronics. As our headphone stuff is about as niche as it gets, I figure many of the points he talks about in this article are going to apply. Worth a read!

 

There is an often thrown around figure of 2.5 times for hardware products. This is the Cost Multiplier. And 2.5 is not bad number to work from as a baseline as you’ll see shortly. Generally you’d want a good reason to go below this number.

 

If something costs you $50 in true cost to manufacture, you’ll likely want to sell it for 2.5 times that, or $125. Why? Well, read on…

 

http://www.eevblog.com/2014/05/28/the-economics-of-selling-your-hardware-project/

Edited May 28, 2014 by TMoney

[nikongod]

[jackass] I'm still not convinced that anyone actually deserves any money to build audio gear. I mean, when you can buy an O2 for $37.54 (even less if you steal the resistors from your school's electronics lab and get the op amps and regulators as "MFR samples"), what justification does anyone have to build something legitimately nice? [/jackass]

 

[serious] Although not so specific to audio, the Sherline lathe page has some realllly awesome insights into stupid shit people who are starting business do, from the perspective of the owner of sherline who did some really weird shit apparently. [/serious]