What You Need to Know Before Beginning Product Design Development by Baker Phil

Author:Baker, Phil...
Language: eng
Format: epub
Published: 2014-05-21T23:46:28.407000+00:00

Product Cost

The product cost has a big influence on the sales volume and the success of a product, yet is one of the areas that’s often not considered until late in development.

Surprisingly, the errors come less from estimating the cost of the product and more from not carefully understanding the markups required to get the product from the factory to the marketplace. Nearly every inventor-engineer client I have worked with has failed to take into account and develop a detailed understanding of how the product’s cost will translate into the retail cost, and when they learn, it often appalls them. It’s not unusual for the retail price of the product to be four to five times that of the material cost of the product.

While you don’t want to sell a product at a price that’s below its cost, the customer will pay a price based on how desirable the product is, its uniqueness, the competition, and how else the problem can be solved.

It’s a big mistake to develop a product without considering the who, what, when, and how much of the product.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.