>Spread over a first run of 12 units, even charging $100/hr for s/w
>and $30/hr for assembly, this comes to about NZ$334/unit, which
>is over $1000/unit less than the other product
>
>There's very little in the way of further costs - no packaging, no
>distribution, no advertising
>
>My feeling, because I'm a nice guy, is that NZ$334 is a fair price,
>and in future it would be even fairer because I've recouped the
>s/w development cost. Yet I can't help also feeling that $1000 is
>a big gap between me and the opposition and I should be trying
>to narrow that down by several hundred dollars
>
>Does anyone have advice ? Normally I don't have this problem
>because the differential is nowhere near as great

Price yourself competitively ie don't be too nice a guy. It's a lot
easier to tack on a hundred extra or drop a hundred from the $800
mark than it is to good from $334 up to $800....

Don't forget your $334 is your cost not your profit. Ie if you had paid
yourself for each job you listed (and a few you didn't) then $334 is
what it would cost you to produce that product. If you wind up selling
1000 over a year who is going to build all of them etc?

Dave

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