I have recently have had a request for our business plan and I need to find what is an reasonable number to use for the marginal cost for PC retail boxes/CD. Thanks for any help that you can provide. We plan for an initial volume of 50-75k.

Cost of development has NOTHING to do with the number of units you expect to sell.
How to estimate cost

Ah I guess I didn't ask the question clear enough. We are developing the game fine. What I'm trying to find out is how much the manufacturing, not development costs are per unit. Like whats a reasonable estimate for manufacture of the dvd, manual and box. So say retail on the box is 39.99 how much should I figure in COGS for manufacturing? I need this because they are requesting a break even figure on volume, and without an accurate marginal cost figure, then I can't justify my outcome.

Quote: Original post by gorgse
What I'm trying to find out is how much the manufacturing, not development costs are per unit.

Doh. Well, it's been quite a while since I participated in any COGs discussions, and then it was for high quantities, with an operations chief who had excellent vendor relationships and deals already in place.
You'll likely find that the price varies depending on quantity. Lower quantities = higher cost per unit.
If someone doesn't post figures here for you, you'll probably have to contact duplicators and make inquiries. There are duplicators who can handle it all for you (duplication, packaging, printing, assembly) or you can find vendors to handle separate aspects. You'll also need storage for the goods.
Your best bet is probably to use the phone to gather the data for your business plan.

Thanks Tom, in our case we will not actually be dealing with the manufacture. The publisher will, and I'm fairly certain they will be able to recieve a fairly cheaper price than any that I'm quoted due to their relation's with the manufacturer. Break even is just something they wanted us to compute in our proposal to them. I'm fairly sure that the COGS doesn't need to be totally accurate as any forcasting usually isn't, but I'd like to try and use some numbers that are reasonable so we come across as being professional.

Then just ask the publisher for a reasonable COGs number.

yea, I've thought of that, but i'm trying to avoid going that way if I can. I was thinking if I came up with it on my own, it might impress them. But maybe they will like that I ask for information when I need it. I'm proably over analysing the situtation and the couddn't give a damn either way.