Model your production run
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Your numbers
Landed cost / unit
$30
Contribution / unit
$38.54
Contribution margin
43.3%
Break-even units
130
Profit if the run sells out: $14,270
Revenue at sell-out: $44,500
Cash needed upfront: $20,000
Suggested pricing tiers
Survival floor
25% contribution margin — the minimum worth shipping at
$63
Healthy direct price
40% contribution margin — funds the next run and mistakes
$83
Retail-ready MSRP
4× landed cost — leaves room for wholesale and distributors later
$120
Playbook verdict
- RiskPrice is only 3.0× landed cost
The classic hardware death zone. Under 3× there is no room for retail margin, warranty claims, or the surprises every first run has. Post-mortems are full of campaigns priced at 2× that died in fulfillment. Target 3–4× minimum.
- GoodBreak-even at 26% of the run
Selling 130 of 500 units covers all fixed costs — the rest of the run is profit. That is a fundable position.
- WatchShipping estimate looks optimistic
Freight, dimensional weight, duties and last-mile routinely land at 10–15% of price. Underestimated shipping is the single most common margin killer in maker post-mortems.
Scenario compare
Save this model as a baseline, then change inputs (sea vs air freight, a bigger MOQ, a new price) and see the delta live.
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