“Secrets” about the consumer audio business you may find interesting
If anything 30% is already high and the company will have problems staying in business as the article notes.The rule of thumb used to be 1/5 of retail should be COGS.Source: 25 years ago my father co-founded a pro audio company that later pivoted to prosumer/consumer space. 4 VC rounds later the company was sold to major manufacturer for 9 figures. My father had less than 1% left after dilution.PS The biggest source of growth for the company was a massive ad campaign by Apple that also featured device by the company. Another key factor was being next door to a major channel for distribution. Of course the hardware was nice too but for the first 10 years the company had less than million in sales.