INVENTOR CALCULATOR
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Please fill in only cells with white background. Follow the guide lines at the right of the table The numbers we inserted are just an illustration. You should replace with the numbers you collect
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Scenario 1Scenario 2Scenario 3Scenario 4Scenario 5Guide Lines
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Units Produced1,000 5,000 10,000 50,000 100,000 Ask 3 different suppliers 5 alternative budgets, considering all technical specifications to build your invention
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Variable CostsCosts that vary with the production quantity
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Manufacturing40,000 €150,000 €270,000 €1,000,000 €1,800,000 €Here you put the total manufacturing costs for each quantity scenario. With the specifications of your invention, you select 3 different manufacturers with the capacity to build your invention
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Packaging5,000 €23,000 €40,000 €200,000 €390,000 €If packaging is done by a different supplier than the manufacturer, put the total cost for each quantity scenario. Most situations packaging is made by the manufacturer, accordingly to your specifications
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Other4,000 €20,000 €40,000 €100,000 €150,000 €Any other costs that you anticipate. For example if you can't audit the manufacturing process yourself, you should consider someone capable that you trust. Remember that is better to estimate over then below…
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Fixed CostsCosts that Don't vary with the production quantity
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Concept&Design10,000 €10,000 €10,000 €10,000 €10,000 €All the costs you had, or will have to finish the concept - idea research, designing, prototyping, etc
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Protecion&Branding1,000 €1,000 €1,000 €1,000 €1,000 €All the costs you had, or will have, to protect your invention and its brand. You should include legal, patents + copyrights + brand design
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Inventor Min Profit10,000 €10,000 €10,000 €10,000 €10,000 €The minimum amount of money you expect to make with the launch of the invention: Remember that after the launch, you will have all setup costs covered, so then you will have the opportunity to really profit. Your Invention will be in the market and you will be leveraging all the investment you made. So, in our opinion, you should consider a reasonable value that will not jeopardise your invention launch
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TOTAL COSTS70,000 €214,000 €371,000 €1,321,000 €2,361,000 €
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Unit Costs AnalysesThe objective of these table is just to help you analyse the weight of each cost type on the final launch price
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Manufacturing€ 40.00€ 30.00€ 27.00€ 20.00€ 18.00The total cost of manufacturing one unit of your invention
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Total Variable€ 49.00€ 38.60€ 35.00€ 26.00€ 23.40The total variable costs per unit. This number is important because variable costs proportion is independent of the quantity produced
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Total Fixed€ 21.00€ 4.20€ 2.10€ 0.42€ 0.21The total fixed costs per unit. This number is relevant because its lowers with the quantity produced
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MFI€ 25.67€ 15.69€ 13.60€ 9.69€ 8.66This is Market Financed Invention Success Fee per unit.
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TOTAL€ 95.67€ 58.49€ 50.70€ 36.11€ 32.27The total cost of manufacturing one unit of your invention
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Gross Margin68%68%68%68%68%The gross margin you get to be included in the invention register
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Sales to launch1,0005,00010,00050,000100,000This are the 5 alternatives for you to decide. Its a compromise since, normally, higher units mean lower price. So you have to decide based on your perception of the value the consumer gives to your invention
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Launch Price€ 102.67€ 62.77€ 54.41€ 38.75€ 34.63These are the 5 alternative Launch Prices. As already said, your decision is based on customer's price sensibility to your inventions
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Estimated PriceThe estimated price will depend essentially on our customer price sensitivity to your invention. It should be at least 30% higher than the launch price in order for you to profit and it will depend directly on your distribution strategy after launch. You can figure out this price considering: a) competitor's prices; b) if there are no direct competitors, your invention may replace another product, so this other product price should be considered; c) if your invention is totally new, then the reference price must be the value you invention may offer to your customers
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Safety net10%This is just to be ready for any unexpected cost. Its a percentage of TOTAL COSTS
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