Build Notes
What it really costs to launch a physical product
The factory quote is the smallest surprise. Here’s the whole picture, in the order you pay it.
When I priced my first product, the factory quote looked like the budget. It wasn’t. By the time I had mapped every payment, the real number was nearly double. Here’s the list, in the order the money actually leaves your account.
Before production
- Samples. Plan on paying for more than one, plus shipping.
- Factory deposit. Usually 30% when you place the order.
- Packaging and design. Box artwork, inserts, cards.
Before the goods leave the factory
- Factory balance. The other 70%, and usually the biggest single payment.
- Payment fees. A few percent if you pay through a protected platform, and worth it.
- Inspection. A third-party check before you pay the balance.
Getting it to the warehouse
- Freight and duty. This can add more than a third on top of the factory price. Know whether your quote includes duty.
- Warehouse intake fees. Marketplaces charge to receive and place inventory.
Launching it
- Photos. Your listing can’t sell without them.
- Launch advertising. Early ads cost more per sale, because the product has no reviews yet.
- A cushion. Add 10% for the surprises you haven’t met yet.
The question that matters most
Not “what does it cost?” but “when is the most money out at once?” For most launches that’s a few months after the first sale, because you have to reorder before the first batch sells out.
My rule now
I don’t commit to a product until every line above has a number and a date next to it.
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