[arebop]

Interesting idea. You got pretty hand-wavey on your analysis. You didn't include advertising costs or whatever Amazon takes as a listing fee. What happened with the R&D and Licenses/Certifications costs in your final summation?

[pricetag]

Since the R&D and licenses are one time costs, I include a paragraph in the last section calculating how many wallets I expect they’d have to sell to recover those costs.

I agree I was a bit hand wavy. I was really concerned that people would get bored so I struggled with wondering how much detail I should include or omit. For my next post, I’ll try to think of every conceivable cost.

Thanks for reading!

[arebop]

I don't think you have to cover every conceivable cost. It's OK to stop when you think you're down to insignificant components of cost. I think rather than trying for a more comprehensive analysis, you should try for a more rigorous analysis.

For example: the analogy involving chicken prices. It seems like a reasonable idea, but there's no quantitive evidence about how good of an analogy it is. If you could find additional supporting evidence for including this factor, it would make your analysis more solid.

Same goes for "T-shirts, leather wallets…what’s the difference, am I right?" It is far from clear that you are right and your 50% fudge factor is likewise totally unsupported and arbitrary.

These back-of-the-envelope suppositions reflect a logical train of thought, but IMO the imaginary elements should be supported by more facts, which would improve the soundness of your logic and make your blog post much more compelling.

[pricetag]

Hey that’s great and actionable feedback, and I really appreciate you taking the time to deliver it, in addition to reading the post itself. I’ll apply this to my next post. Thanks again!