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The math is this: BOM + cost to acquire a customer + cost to sell the unit < sale price Otherwise you don't have a business. Please don't ask me how I know thi
by greesil 3y ago
The math is this:
BOM + cost to acquire a customer + cost to sell the unit < sale price
Otherwise you don't have a business. Please don't ask me how I know this.
10x is a rule of thumb, YMMV. You just need to make the above inequality evaluate to true. You can (maybe) raise money to deal with the various non-recurring expenses. Oh and you should pay your employees too.
- konschubert 3y ago:D I’d love to get your advice, can I contact you?
- greesil 3y agoDude, I'm just an engineer who can do basic arithmetic.
- deleted 3y ago[deleted]
- HeyLaughingBoy 3y agoYeah, but you'd be amazed how few people do that basic arithmetic!
- greesil 3y agoIt's not that it's hard to do the math, but it's hard to find product market fit where that inequality is satisfied. And sometimes people think they are gods gift to hardware design and can't be reasoned with to do a cost down.
- ecks4ndr0s 3y agoThe more 0s you add the closer you get to how Apple prices its products I guess.