Re: So say I wanted to sell something...

On Mon, 22 May 2006 06:42:58 -0700, John Larkin
<jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> wrote:

On Sun, 21 May 2006 23:58:22 -0400, Spehro Pefhany
<speffSNIP@xxxxxxxxxxxxxxxxxxxxxxx> wrote:

On Sun, 21 May 2006 12:35:42 -0500, the renowned "Tim Williams"
<tmoranwms@xxxxxxxxxxx> wrote:

I'm considering selling kits and maybe assembled models of my induction
heater. Is there anything "wrong" with this on a hobby basis? Should I
start a company? In that case, would I be infringing on any patents?

Tim

Aside from the good comments you've gotten already, make sure you
price your offerings high enough. A lot of people who have not been
involved in a actually running a business think they can work on very
low margins, then get into it and realize that they cannot and have to
greatly increase their prices in order to pay for documentation,
customer support (even when the customer has screwed up royally you
may have to cover them to some extent) and all the other little (and
not-so-little) costs of doing business.



Most restaurants run about 22-25% for materials (cost of food), 50%
labor and benefits, most of the rest for rent, fees, services, and
taxes, and make maybe 5% profit/retained earnings. Those are good
numbers for a small electronics business.

John



Oh, one other thing: restaurants make the most profit at the bar. In
electronics, the highest profit items are firmware-based options
(which cost nothing on a production basis) and accessories like
cables, connectors, and wall-warts, which can be sold at 3-5x cost.

John

.

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