Hardware Podcasts

Ep. 22 - Pricing Your Product

Open Hardware Manufacturing Podcast · 13 Jun 2024 · 1h 00m

What this episode covers

Steven Haws and Lucian Che Park of Opulo discuss pricing strategies for their open-source hardware products, specifically the Lumen pick-and-place machine and Feeders. They detail the calculation of Bill of Materials (BOM) and Cost of Goods Sold (COGS), including labor and shipping, to determine a Minimum Monthly Obligation (MMO) that the product must cover. The hosts explain their iterative pricing history, moving from a loss-leading DIY kit price to a sustainable $2,000 for the assembled machine, while emphasizing the importance of transparency and value-add. They contrast top-down market-based pricing with bottom-up cost-plus models, advising founders to find a sweet spot that ensures business sustainability without alienating their community.

Most relevant to

early-stage companies

Topics

Mentioned

Companies
Opulo, Adafruit, Sikorsky, Prusa
Products
Lumen, Feeders

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The summary, chapters and topics are generated from the episode’s audio by this directory, not written by Open Hardware Manufacturing Podcast. The episode itself belongs to its publisher.