4 ms·

Can't you say the same thing about any piece of software as well? It costs next to $0 in bandwidth to download an app or program. Why should the price be higher

Can't you say the same thing about any piece of software as well? It costs next to $0 in bandwidth to download an app or program. Why should the price be higher than $0? Hardware costs a lot of money to develop and manufacture. There have been a lot of posts on HN recently about the price of hardware. Niche hardware like this doesn't cost next to nothing when made in small quantities. All the fixed NREs (all the prototype costs, the plastic mold tooling, any upfront factory fees, etc.) have to be amortized over the few units sold. And that is just breaking even. Selling goods at cost is a tricky business model. It makes sense to add in a little profit. If you don't like the price, then you probably shouldn't buy it. If enough people agree with you, they will either change their price or go out of business.

cptskippy 10y ago
> Niche hardware like this doesn't cost next to nothing when made in small quantities. You could use some off the shelf components like an ESP8266 or ESP32 module to dramatically reduce your cost. A hand full a discrete components, an electret microphone, auto gain amplifier, and a voltage regulator aren't going to set you back more than $10. A custom PCB is going to be $5 per unit max. The BOM is easily under $20 for a limited run of 10 to 20 units. The most expensive things are going to be the enclosure and assembly. If you find an off the self enclosure then your costs drop considerably. You could have a working prototype cobbled together in a day.
- blackguardx 10y ago
  Your one day prototype will costs thousands to bring to market. Lets look at just the electronics. Have you priced out FCC certification? The wifi module might be already certified, but the whole product isn't. That is $5k to $10k minimum for US only. It also plugs into mains, which means it might need UL certification to it won't burn down someone's house. Your $20 BOM just gets you a board and loose components, not a complete product. The cost of a complete product is called "cost of goods sold" or COGS and includes things like assembly, testing, and shipping, etc. Even if $20 was your COGS, how much would you have to charge to make a profit? It all depends on how many you sell. If you only intend to sell 1000 or so (likely the case here), you need to charge accordingly.
  - cptskippy 10y ago
    > The wifi module might be already certified, but the whole product isn't. That is $5k to $10k minimum for US only. If you're using Pre-certified modules then you can qualify the remainder of your product as unintentional radiator and the FCC certification cost is $1k-2k. > It also plugs into mains, which means it might need UL certification to it won't burn down someone's house. UL certification isn't mandatory, UL isn't a government organization and there's no legal requirement to have your device certified by them. > Even if $20 was your COGS, how much would you have to charge to make a profit? It all depends on how many you sell. If you only intend to sell 1000 or so (likely the case here), you need to charge accordingly. My point is that $150 plus an annual subscription fee is steep for such a simple product. Per unit cost on a very limited run (e.g. 1000 units) doesn't justify a $150 price, especially if you're charging a subscription on top of that.
    - blackguardx 10y ago
      I've never seen unintentional radiator testing under $5k. What lab does your testing? UL isn't mandatory, but do you want your product stocked by retailers? You might need it then.

cptskippy 10y ago

> Niche hardware like this doesn't cost next to nothing when made in small quantities. You could use some off the shelf components like an ESP8266 or ESP32 module to dramatically reduce your cost. A hand full a discrete components, an electret microphone, auto gain amplifier, and a voltage regulator aren't going to set you back more than $10. A custom PCB is going to be $5 per unit max. The BOM is easily under $20 for a limited run of 10 to 20 units. The most expensive things are going to be the enclosure and assembly. If you find an off the self enclosure then your costs drop considerably. You could have a working prototype cobbled together in a day.

blackguardx 10y ago
Your one day prototype will costs thousands to bring to market. Lets look at just the electronics. Have you priced out FCC certification? The wifi module might be already certified, but the whole product isn't. That is $5k to $10k minimum for US only. It also plugs into mains, which means it might need UL certification to it won't burn down someone's house. Your $20 BOM just gets you a board and loose components, not a complete product. The cost of a complete product is called "cost of goods sold" or COGS and includes things like assembly, testing, and shipping, etc. Even if $20 was your COGS, how much would you have to charge to make a profit? It all depends on how many you sell. If you only intend to sell 1000 or so (likely the case here), you need to charge accordingly.
- cptskippy 10y ago
  > The wifi module might be already certified, but the whole product isn't. That is $5k to $10k minimum for US only. If you're using Pre-certified modules then you can qualify the remainder of your product as unintentional radiator and the FCC certification cost is $1k-2k. > It also plugs into mains, which means it might need UL certification to it won't burn down someone's house. UL certification isn't mandatory, UL isn't a government organization and there's no legal requirement to have your device certified by them. > Even if $20 was your COGS, how much would you have to charge to make a profit? It all depends on how many you sell. If you only intend to sell 1000 or so (likely the case here), you need to charge accordingly. My point is that $150 plus an annual subscription fee is steep for such a simple product. Per unit cost on a very limited run (e.g. 1000 units) doesn't justify a $150 price, especially if you're charging a subscription on top of that.
  - blackguardx 10y ago
    I've never seen unintentional radiator testing under $5k. What lab does your testing? UL isn't mandatory, but do you want your product stocked by retailers? You might need it then.