True, the cost of the printer would be approx $45, but its contribution to the retail product price would be around $160 unless we're prepared to knock down standard profit margins.
NOTE: If we decrease standard profit margins on this product, then either cost of sale has to go down or profits from other services or products have to go up to compensate. We need the profits to keep running the company.
Has anybody done any cost-benefit analysis on this product? We should know up front what we expect to make on the product.
Based on standard margins for retail pricing, a $1500 product should sell for $5000. Of course, higher volume per sale would allow this retail price to come down, but by how much? Any ideas anyone? Perhaps this is a Howard question. Just thought I feel it out.