At our company, we are in the process of finishing to develop a toy prototype.
I need to estimate the "production" price of all the components.
I was able to gather all the price from every manufacturer of every components in quantity of > 5000.
However, the sums of each individual price is really high even in quantity of 10000, and when I add a plastic enclosure, the PCB, and assembly, it is clearly not competitive with similar products.
Does anybody have some experience in this field, and could share his finding on how to optimize the price of a product in a reasonable range ?
For example, I bought and analyzed an Android 7'' Tablet available on AliExpress for 42.00$ (shipping included). Then, I tried to find every components in quantity of 10000 (Capacitive 7'' LCD Screen, Large capacity LiPo battery, WiFi, Bluetooth, 4GB Flash, Dual Core >1Ghz processor, Speaker, Vibration motors, etc.). For now, without assembly and plastic case which are hard to estimate for me, sums of every component price is over 500$, which is already more than 1000% higher than their actual "sell" price, testing, shipping and profit included on their side.
I don't need to create a product 1000% less expensive. But since it is a toy, it can't be as high as it is currently.
- Do I need to replace every components by cheap part found only in Asia market?
- Do I need to buy in quantity of 500k / 1M to have a good price?
- Do we create the prototype first locally, and then ask a second partner team in Asia to redo it completly with their products ?
If anybody have some clue to help me on this topic, I would really appreciate it!
Thank you !