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General Asylum General audio topics that don't fit into specific categories. |
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General Asylum General audio topics that don't fit into specific categories. |
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In Reply to: What % of the MSRP goes to Advertising / Marketing ? posted by adnut on May 9, 2001 at 16:40:57:
it depends on the product and the brand power of the company and their products. e.g., is the product new and unknown ? is the company new ? do they have distribution ? and if you are talking hardware - like, say a consumer Good Guys/Circuit City CD player vs a HIgh end boutique CD player - a rough estimate would go like this:SRP or now what we call: ERP ( estimated Street Price) - so an ERP of
say $ 300.00 would break down as:COGs ( cost of goods and to build it) - roughly 45-75.00
Marketing and distribution and Co-op $ - 20.00- 40.00
Price to reseller/distributor - 120 - 200.00
Mark-up is in the 50-100+ % rangeA High-end unit might go more like this: ERP of 5000.00
COGs - roughly 900-1500.00
Marketing, Disti and Co-op - 200-500.00/unit
Price to reseller - 2500 at the low margin end ( new, unknown high-end product) to upwards of 3500.00 ( est'd brand and products with an audience of repeat customers).
Mark-up is in the 40-100% rangejust some rough thoughts and ranges given my experience in costing out and building products both in the hardware space and software universe.. a manufacturer's mileage may vary widely.. especially the cable guys !
Kevin
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- Re: What % of the MSRP goes to Advertising / Marketing ? - All_Mod_Cons 05/9/0118:36:26 05/9/01 (0)
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