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The profit margin ranges between 60% to 70%, i.e a mobile phone costing $400 would have a retail price of $1000. I think the mark up price is somehow fair and that for marketing and R&D
it costs +-20% of the sale price. The price goes up because of the marketing. The market is saturated and they need new consumers .
The production cost is based on a teardown of the device, analysis of specs and information from suppliers. The most costly parts are often the core electronics, display, memory, and camera.
Let’s check out the production cost of Apple iPhone 7 Plus (32GB):
Notice that I didn't take into account other costs like marketing, research, and development, distribution, staff or packaging, so the manufacturers wouldn’t earn that much profit from their products.
25% cost to the manufacturers and selling at 100% including Tax, Wages, Transportation exp
DEPAND ON THE WORK CAPACITY AND SITUATION.
Manufacturing costs much less than the sale price, but marketing, warranty and conditions, service centers, support, all of those things can increse price more or less.
I think it cost 20-25% of the sale price. Mark up is necessary for the endorsement of the product in the market.
I think mobile phones csot 60% to their manufacturer. The markup price is fair considering their overheads.
Yes markup is important to set up for menu pricing
manufacturing will be around 65% of the price and 35% markup.
Manufacture cost to be 40%
