Pricing hardware and changing business models

What you'll get

Matt Webb's short 2013 blog post summarizes Marc Barros's advice on pricing a hardware product: count retail margin, sales rep commission, fulfillment and card fees, a return allowance and the fully packaged cost in the warehouse before you look at your own profit, and do not be afraid to charge more. Webb then argues that crowdfunding and subsidized products such as the Kindle make the simple margin math harder, so use it as a checklist of costs to include rather than a current price guide.