# 4: How The Money Comes In

- Show: [Thoroughly Considered](https://hardwarepodcasts.com/podcast/thoroughly-considered)
- Published: 2015-11-12
- Length: 48m
- Episode: 4
- Page: https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in
- Listen: http://relay.fm/tc/4

## Summary

Myke Hurley, Tom Gerhardt, and Dan Provost of Studio Neat discuss their revenue streams, noting that Amazon accounts for 44% of their annual income while they maintain almost zero physical retail presence. They explain how their lean, two-person structure and reliance on third-party fulfillment dictate product design, leading them to prioritize high-margin, lower-volume items over mass-market goods. The conversation also covers the operational challenges of managing scattered inventory across five warehouses and the decision to manufacture the Apple TV Stand in-house to learn the process before potentially outsourcing.

## Chapters

- [0:04](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=4) Introduction: Studio Neat and Revenue Overview
- [1:02](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=62) Sales Channels: Direct, Wholesale, and Amazon
- [4:44](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=284) Margin Analysis: Amazon vs. Wholesale vs. Direct
- [7:29](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=449) Avoiding Physical Retail and Traditional Distribution
- [13:56](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=836) The Lean Business Model and Revenue Constraints
- [17:48](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=1068) Potential Mistakes: Hiring and Growth Strategy
- [21:34](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=1294) How Sales Channels Influence Product Design
- [32:46](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=1966) Logistics Pain Points: Inventory and Warehousing
- [38:23](https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in#t=2303) Apple TV Stand: In-House Manufacturing Update

## Topics

- [Direct-to-consumer & e-commerce](https://hardwarepodcasts.com/topic/direct-to-consumer)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Logistics & fulfilment](https://hardwarepodcasts.com/topic/logistics-and-fulfillment)
- [Design for manufacturing & NPI](https://hardwarepodcasts.com/topic/design-for-manufacturing)

## Most relevant to

early-stage companies

## Mentioned

- Studio Neat (company)
- Amazon (company)
- Apple TV Stand (product)
- Neat Ice Kit (product)
- Glyph (product)
- Cards Against Humanity (company)
- Tatley (company)
- CW and T (company)
- Lumi (company)

## Related episodes from other shows

- [Afterschool Podcast, Episode 5 - StudioNeat (9/16)](https://hardwarepodcasts.com/podcast/core77-podcast/2013-11-04-afterschool-podcast-episode-5-studioneat-9-16) (Core77 Podcast)
- [195: Ensuring Profitability on Shopify and Amazon](https://hardwarepodcasts.com/podcast/product-startup/2023-09-28-195-ensuring-profitability-on-shopify-and-amazon) (Product Startup)
- [Episode 291: I’m just the pretty face](https://hardwarepodcasts.com/podcast/making-it/2021-01-15-episode-291-im-just-the-pretty-face) (Making It)
- [Advice Line with Serial Entrepreneur Mark Cuban](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-01-29-advice-line-with-serial-entrepreneur-mark-cuban) (How I Built This)
- [Advice Line with Tim Ferriss](https://hardwarepodcasts.com/podcast/how-i-built-this/2025-08-28-advice-line-with-tim-ferriss) (How I Built This)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/thoroughly-considered/2015-11-12-4-how-the-money-comes-in. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Thoroughly Considered.