henry sztul

Many new consumer electronics ventures can flourish in a state of semi-success, selling product for profits and reaching a break-even point faster than software startups. This is because the economics of consumer hardware are not incredibly complicated. The return on investment is a much clearer process.

Roughly one-third of the suggested retail price of an item is direct cost (buying components, shipping, and inventory). Another one-third goes to the retailer. The rest is profit.

Want to improve your odds? Think hardware | VentureBeat