Speaker Asylum

General speaker questions for audio and home theater.

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Original Message

Let's analyze if you have time...

Posted by Iron Knee on July 24, 2012 at 14:04:41:
Answer these questions if you can or just guess..

How many hours of labor does it take to build and finish the enclosures?

How much does the packaging material to ship the finished product cost?

What in your estimate does the drivers cost them? How much shipping was involved to make the raw components? Labor hours?

Does the company have a legal staff? How much do you feel it adds to the retail pricing?

Is the company leasing the manufacturing buildings? How much do you feel this matters to the end cost?

Company insurance?

Local taxes?

Hazardous waste disposal costs? Scrap disposal? Dust disposal? Containment?

Marketing? Advertising? Transportation expenses and insurance? Brochures?

Warrantee replacement costs? Returns? Duds?

I skirted over about half of the "hidden costs" not pertaining to the actual product of running a manufacturing facility.

Then you have markup. 4 to 5X the actual cost of the product to retail. (after all expenses are paid to bring to the market.)