Starting a Business in Silicon Valley
> I'd later learn from some hardware experts that you really want to price goods like mine around 5x the cost to manufacture.<p>This. If you're doing hardware, your price needs to be <i>minimum</i> 3x-5x the COGS.<p>If you think you're going to win some market by pricing with lower margins, like 1.5x-2x, you're setting yourself up for failure.<p>Interestingly, the same rule holds for restaurants: food input costs should be no more than 20-30% of the meal price.