Of course the cost of a speaker brand is much bigger than the cost to manufacture a single pair of speakers.
That's not what I meant to say. But rather, this is an important calculation that often appears.
The same type of analysis is done for restaurants where the cost per plate is calculated to be x % of the selling price of the dish. For a decent restaurant this is usually expected to be no more than 25-33%, and everyone who uses it accepts it is nothing but a rough estimate. Mostly what we know is that if you are charging only 2x your food cost, you are usually going to be loosing a significant amount of money.
It is a fair number, but not precise and subject to a number of moderating factors.
Best,
E
That's not what I meant to say. But rather, this is an important calculation that often appears.
The same type of analysis is done for restaurants where the cost per plate is calculated to be x % of the selling price of the dish. For a decent restaurant this is usually expected to be no more than 25-33%, and everyone who uses it accepts it is nothing but a rough estimate. Mostly what we know is that if you are charging only 2x your food cost, you are usually going to be loosing a significant amount of money.
It is a fair number, but not precise and subject to a number of moderating factors.
Best,
E