3 ms·
Provided that blueprints are already finalized, and certain distribution eagerly awaits to consume the amount of product you intend to manufacture at the rate y
by fuzzfactor 3y ago
Provided that blueprints are already finalized, and certain distribution eagerly awaits to consume the amount of product you intend to manufacture at the rate you intend to produce, it all boils down to raw materials and labor in an American fabrication/assembly facility.
When you do the math focused on the manufacturing task alone, you can come up with a baseline estimate on what it might cost to make each item and how that compares to what it will sell for, wholesale of course since this is just manufacturing.
This would be your "toaster baseline".
Now you may plan to produce an artisan product but toasters themselves are not only a commodity but the market has been saturated for quite some time.
You can't expect to compete with the mainstream on price or volume, but that's OK you're not going to be able to make that many to begin with.
Never mind how few you make, if you make money on every one, and through some excellent good fortune you can sell all you make, you will be profitable.
Whether that's enough profit in comparison to other oportunities, well you have your baseline to work from.
You might be able to find an alternative product (most likely addressing a completely different market), which can be produced at similar unit expenditures in similar facilities, but sell for a better price into its market in such a way as to be a much better choice. Maybe better off with something that's not a commodity, maybe so, you have to do the math.
If you're expecting the manufacturing phase alone to be a core value-adding operation.