This would be a great MBA program exercise.
Off the top of my head, major cost categories to consider:
R&D (including any licensing fees)
Raw materials (drivers, electronics, cabinetry etc.)
Manufacturing
Warehousing
Distribution
Promotion (advertising, dealer incentives, etc.)
Warranty support
Financing (unless the business owner is independently wealthy, there’s going to be a note to pay off! ;-)
Each of these major categories can be further subdivided and refined.
Ttl. Costs/(1-Target Profit Margin*)=Selling Price
*as decimal per cent
Off the top of my head, major cost categories to consider:
R&D (including any licensing fees)
Raw materials (drivers, electronics, cabinetry etc.)
Manufacturing
Warehousing
Distribution
Promotion (advertising, dealer incentives, etc.)
Warranty support
Financing (unless the business owner is independently wealthy, there’s going to be a note to pay off! ;-)
Each of these major categories can be further subdivided and refined.
Ttl. Costs/(1-Target Profit Margin*)=Selling Price
*as decimal per cent