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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