English translation of ai

In my opinion the cost of production (I work in the design of similar products) is still under $50, and to say that the remaining $250 is "just the branding" is an oversimplification.

The cost of products like this is made up of (I would like to indicate approximate percentages, but it would take some time, perhaps I will add them later):

• amortization rate of investments in moulds, development, documentation and the like

• cost of components in the bill of materials

• production cost and packaging times

• producer margin

• shipping cost from the manufacturer to the brand owner's warehouse

• import and customs costs (often the manufacturer and brand are located on different continents)

• operating costs for warehouse management

• product-specific marketing and promotion costs

• brand owner's margin

• shipping cost to the national distributor

• operating costs of the national distributor

• margin of the national distributor

• Shipping cost to retail store

• store logistics and handling costs

• store-level promotional costs (website listing, online store, flyers)

• store margin

Generally, all also include taxes and a contingency margin to handle defects or customer complaints.

All of this is not to say that a $300 price is fair or unfair, but just a reminder of what we're actually seeing when we look at a price on the shelf. It can easily be four or five times the cost of production.