The founders do not plan to sell the product directly to consumers, so they are currently beginning to reach out to businesses that would be potential distributers of the product. The firm would ultimately like to form a partnership with an outdoor sporting store such as REI, Gander Mountain, Cabela’s, or Eastern Mountain Sports. This would be the best way to reach the target market of consumers age 18-35 who are active campers and hikers. Additionally, being placed in an outdoor sporting goods store delivers the message the brand hopes to send, as it is being marketed as a product specifically for this demographic. There is additionally a possibility that a partnership could be beneficial as many of these companies have shipping materials
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The wholesale cost of plastic is approximately $0.15 per pound, and approximately $0.25 per yard of thin copper gauge wire. The battery is the most expensive component of the product to produce, which will cost approximately $2-$5 per battery depending on the final size of the mobile charger itself. The firm plans to initially manufacture one-thousand Never Dead self-charging phone chargers. If sold at $30 per unit, minimally (according to current figures for patents and production) 667 to 834 mobile phone chargers would need to be sold to break even before any profit. This is not including the price cut that the retail stores will require from the firm in order for it to sell the products through their stores. For example, Best Buy takes 2% out of all commissions for electronic accessories sold in their stores (Best Buy) and REI asks for a 5% commission from all sales (AvantLink). Packaging costs must also be considered and paid for before the product can even be sold in stores or to consumers. 5% commission would bring the price down by $1.50 for the firm. Packaging can range from minimal amounts to $3.00 per product depending on which route the firm decides to go. Assuming the most expensive route, the firm’s profits per product would be $10.50. In order to break in, the firm would need to sell minimally 1,005 to 2,381 mobile phone chargers to break
The wholesale cost of plastic is approximately $0.15 per pound, and approximately $0.25 per yard of thin copper gauge wire. The battery is the most expensive component of the product to produce, which will cost approximately $2-$5 per battery depending on the final size of the mobile charger itself. The firm plans to initially manufacture one-thousand Never Dead self-charging phone chargers. If sold at $30 per unit, minimally (according to current figures for patents and production) 667 to 834 mobile phone chargers would need to be sold to break even before any profit. This is not including the price cut that the retail stores will require from the firm in order for it to sell the products through their stores. For example, Best Buy takes 2% out of all commissions for electronic accessories sold in their stores (Best Buy) and REI asks for a 5% commission from all sales (AvantLink). Packaging costs must also be considered and paid for before the product can even be sold in stores or to consumers. 5% commission would bring the price down by $1.50 for the firm. Packaging can range from minimal amounts to $3.00 per product depending on which route the firm decides to go. Assuming the most expensive route, the firm’s profits per product would be $10.50. In order to break in, the firm would need to sell minimally 1,005 to 2,381 mobile phone chargers to break