Display MoreI think 100$ in materials (I'm assuming quality components), assembly (assume a lot of manual labour the first period of time), logistics, production setup is way too little. Add to that marketing, advertising, etc etc.
The 100$ doesn't make sense. How many hours of development. We're talking from zero to 100%, setting up the specifications, deciding the features, the hardware, finding the right components, laying out the PCB, industrial design, cost of material and labour for a number of test units, development of firmware for both KPA and remote, Testing, going back to the drawing board, testing again, building again, the overhead part of labour costs (like insurance, equipment etc etc), developing marketing plans, ensuring compliance to standards and regulations, bla bla bla. So there's quite a bit of money right there. When do they want to break even? How many units do they expect to sell individual year?
Profit margins: you also have to include the distribution chain's upcharge here, including the retailer's.
How anyone would think this unit would cost only 100$ more than the FCB1010 is beyond me (based on Sweetwater price).
It always amazes me how people can undervalue the running costs of a business and bringing a product to market. One of my favourites is when people comment on the price of stompboxes and they say something like "Noway is x pedal worth £y, I could buy the components for £z amount" with no regard to running costs, mark ups, R&D, pension schemes, insurance, marketing, rates, taxes, training, wages, packaging etc etc etc, the list is endless, yet the only value they can see is in the cost of the physical components.