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We are tentatively at 3x COGS for a hardware product we are about to launch in Q1 2019 and the margin feels incredibly tight. We may go to 3.5 - 3.7x COGS.


Pricing is scary. But people have subsequently told me they would have paid $85 per board for my product. I charged $20 and it sunk me. $85 would have meant a small manageable launch that was well funded. Instead I went $100k in debt. Be sure you’ll hve enough to cover unexpected issues. Are you over optimistic about production targets, setbacks, etc? My time estimates were way too optimistic which compounded the price issues.

I’m obviously biased from my bad experience, but do be mindful to do due diligence on pricing, delivery, and costs. Well, my other issue was that I didn’t know how to do those things and I ran out of time.

Best of luck on the launch.




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