JimC;284588 Wrote: > The rule of thumb often used by most analysts is that for the average > high-tech company MSRP is generally 3X product cost. (My wife used to > work in Investor Relations, so I cribbed this from her). > > This means a $99.99 product from a high-tech company is assumed to cost > about $33 to build. By this rule, a cable with $15 product cost should > retail for something closer to $45. > > Since I work for a publicly traded company in the high-tech sector, I > can't comment on the validity of the 3x number. She was pretty adamant > that the analysts used it across the board in estimating product costs > and that they felt it was pretty accurate, at least for typical > high-tech companies. > > FYI, in the world of products, gross margin % is calculated as: > > Gross_Margin$ / Total_Sales > > So for $15 cost and $300 sell price, the gm% is (300-15) / 300 or 95% > gross margin. > > > -=> Jim
Umm no that is not right. Gross margin is the percentage of what you make of the selling price. -- Nonreality -IF THE RULE YOU FOLLOWED BROUGHT YOU TO THIS, OF WHAT USE IS THE RULE.- HTTP://www.last.fm/user/nonreality ------------------------------------------------------------------------ Nonreality's Profile: http://forums.slimdevices.com/member.php?userid=15723 View this thread: http://forums.slimdevices.com/showthread.php?t=45323 _______________________________________________ audiophiles mailing list audiophiles@lists.slimdevices.com http://lists.slimdevices.com/lists/listinfo/audiophiles
