Design for Manufacturing Course 12: Costing
Video from Dragon Innovation. Watch on YouTube.
What you'll get
Scott Miller of Dragon Innovation, a firm that sold manufacturing services to hardware startups, gives this 2014 class on the costs of production: cost of goods sold, the bill of materials and cash flow, including how much money a large order ties up between paying a factory and getting paid by a retailer. Its dollar figures are more than a decade old, so use it to learn which questions to ask about cost and cash before a first order, then run your own numbers.
Do this week
On one sheet, multiply your cost to make and ship one unit by the size of a first order you hope to get, add up the weeks from paying the factory to being paid, and write how much cash you would have to carry in the meantime.