Step 10 of 13
Do the math
Add up parts, finishing, assembly, packaging and shipping. Custom products are hard to resell, so price for healthy margins.
The quote for the part is rarely the cost of the product. Add finishing (anodizing, powder coat), hardware, electronics, assembly time, packaging, shipping both ways and payment fees.
Custom, made-to-measure products cannot be dumped at a discount like unsold stock, so the margin has to be right the first time. A common rule of thumb is to target a landed margin of at least 50 percent before marketing.
Use the cost calculator on this site to sanity-check a rough number before you commit.
Checklist
- Parts, finish, hardware, electronics
- Assembly and packaging time
- Shipping and returns allowance
- Payment processing fees
- Margin target set before pricing