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You might even take after Apple and price it at double your materials cost. That might seem like a lot, but it forces you to make a compelling product that competes on features instead of chasing the bottom dollar. You can always lower the price if you're in a bind, but raising it is almost impossible.

If you're successful at selling that, you'll see healthy returns. I heard a recent blurb that Apple took 90% of the profits on laptops costing more than $1,000. They certainly didn't sell 90% of the laptops in that bracket.

What I'm saying is, dont double your materials cost, thats not nearly enough. You need to add margins TWICE - two 40% margins. Thats 3x material cost, 4x is even smarter. Skimping on margins kills, you can -always- lower the price later.

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