|Re: Accepting some orders for WP 34s overlays|
Message #21 Posted by Eric Rechlin on 3 June 2011, 11:18 a.m.,
in response to message #6 by Walter B
The product isn't out yet, and our US American friends are already going to make money with it ... :-?
I think everyone is making money off it except us. Let me break it down.
Let's assume that you buy an overlay from me. You send me $6. PayPal takes 53 cents of that, bringing me down to $5.47 received. To mail it to you, I need an envelope (10 cents) and a stamp (98 cents). We are now down to $4.39 for the overlay.
Next we have the cost of the vinyl. I am not very efficient in my use of vinyl right now, but I hope to eventually get the cost down to the 25-50 cent range per overlay. Then there is ink, for which I don't yet know the cost. The overlay itself has near 100% coverage of ink, though, so that is quite a lot of ink.
Then there are the consumables related to cutting -- the blade and the cutting mat. Again, I don't yet know what these will cost me.
Next would be the amortization of costs incurred to get me to this point. I bought the cutter and the printer specifically for this, so those both need to be amortized out. Additionally, there are the R&D costs (for example, I spent over $100 on various media for printing to find the best materials for overlays).
At this point it is entirely possible I am losing money on each one of these, though I honestly don't know yet. And this, of course, assumes that my labor is free, which is normally not valid, but since you and Pauli are assuming free labor as well it's only fair for me to do the same.
So I guess if by "US American friends" you mean our friends at companies like Hewlett Packard, PayPal, and the US Postal Service, then yes, they are making money with it. But at the same time one could argue that the battery manufacturers are making money as a direct results of your work, because you need batteries to power your 20b or 30b, so this is getting kind of ridiculous.