# Ep. 22 - Pricing Your Product

- Show: [Open Hardware Manufacturing Podcast](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast)
- Published: 2024-06-13
- Length: 1h 00m
- Page: https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product
- Listen: http://opulo.io

## Summary

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.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=0) Introduction: Steven Haws and Lucian Che Park on Pricing Philosophy
- [2:45](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=165) Calculating BOM and COGS: Materials, Labor, and Shipping
- [11:22](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=682) The Debate: Customer Affordability vs. Operational Costs
- [18:13](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=1093) Minimum Monthly Obligation (MMO) and Profit Margins
- [25:18](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=1518) Pricing History: From $995 Kit to $2,000 Assembled Machine
- [33:14](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=1994) Customer Segmentation: Home Gamers vs. Enterprise Buyers
- [38:30](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=2310) Bulk Pricing, Razor Blade Model, and Berlin Pizza
- [47:45](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product#t=2865) Top-Down vs. Bottom-Up Pricing Strategies

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Direct-to-consumer & e-commerce](https://hardwarepodcasts.com/topic/direct-to-consumer)

## Most relevant to

early-stage companies

## Mentioned

- Opulo (company)
- Lumen (product)
- Feeders (product)
- Adafruit (company)
- Sikorsky (company)
- Prusa (company)

## Related episodes from other shows

- [Adafruit, Chip heist, Hackerspaces - The Kit Conniption](https://hardwarepodcasts.com/podcast/the-amp-hour/2011-04-26-adafruit-chip-heist-hackerspaces-the-kit-conniption) (The Amp Hour)
- [98: The Pricing of Things](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things) (Thoroughly Considered)
- [Kickstarter, IndieGoGo & Ignite - Jasperated Jimswinger Jobbery](https://hardwarepodcasts.com/podcast/the-amp-hour/2013-04-24-kickstarter-indiegogo-ignite-jasperated-jimswinger-jobbery) (The Amp Hour)
- [No More Naming](https://hardwarepodcasts.com/podcast/the-amp-hour/2015-07-23-no-more-naming) (The Amp Hour)
- [9: Asking for Money](https://hardwarepodcasts.com/podcast/thoroughly-considered/2016-02-21-9-asking-for-money) (Thoroughly Considered)

## Citing this page

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