Really cool to see the numbers and congrats on making the product!<p>One nit to emphasize the value in basic accounting knowledge for others when going down the manufacturing route: it's $11.37 <i>_gross_</i> margin (aka gross profit, see <a href="http://en.wikipedia.org/wiki/Gross_margin" rel="nofollow">http://en.wikipedia.org/wiki/Gross_margin</a> ), not <i>_net_</i> profit (<a href="http://en.wikipedia.org/wiki/Profit_Margin" rel="nofollow">http://en.wikipedia.org/wiki/Profit_Margin</a> ). While this may sound silly and academic, <i>net</i> confers a sense of finality -- it includes all costs, marketing, discounts to sell remnant inventory, depreciations... everything. Learning this distinction will also introduce you to inventory management, promotion cycles, and all sorts of other crazy business skills to help you get to the next level in building a game business. There are hundreds of years of wisdom built up about manufacturing that all has to funnel through.... accounting...<p>For example, having >50% net profit is fantastic for manufacturing! Having >50% gross profit is on par for low-scale, specialty products. Jon's 11.37 is a gross profit and on par. Knowing nothing about this specific market, the standard advice in this case is to focus on growing the market rather than reducing costs at this point. (This is a business-model version of the 'don't scale prematurely' mantra you hear in tech considering his price of $20/game doesn't seem insane).<p>Back-of-the-envelope calculations show the gross revenue for all 333 sets is $6,660. Assuming he's included all costs, this means:<p><pre><code> Revenue: $6,660
Costs: $4,660
==================
Net Profit: $2,000
</code></pre>
Which means a net profit of $6/set, a little more than 25% of the sale. Depending on how aggressively he wants the market, he should offer discounts to influential or trend-setting groups of people in the 25% range.<p>Another way to look at this business is he would get a return of $2,000 for $4,660 in capital (since he has 1 production run), or 50% ROI... also not too shabby (if sold at retail price).<p>And yet another way to look at this is manufacturing the product over 8 hours yields $2000, or $250/hour... better than most. It's unclear how much time he spent on the admin and design tasks, but since this is a labor of love... let's assume it was leisure time and free :) It also means a second production run may get him an economy scale from re-using the design and website assets for even more $$$/hour.<p>All-in-all, this looks great across the board, and I wish the Jon the best of luck in bringing Space Dice to the world!