Cost Breakdown
Below is a detailed breakdown of the costs of manufacturing our rocket as well as a recommended retail price in order for the product to be profitable.
| Product cost breakdown (1 unit) | ||||
| Part | weight (g) | price per unit (£) | quantity | total cost per kit |
| Fuselage rails | 105 | 1.26 | 1 | 1.26 |
| Nose base | 114 | 1.36 | 1 | 1.36 |
| nose cone | 322 | 3.87 | 1 | 3.87 |
| wing (fin) | 61 | 0.73 | 12 | 8.76 |
| 1273 grams | 1.2p per gram (approx.) | |||
| PLA | Total cost = £15.28 | |||
| £15.25 | cost of PLA = £11.93 per Kg |
| Machining cost breakdown (50 units) | ||||
| Task | cost per hour (£) | quantity | Time (hours) | Total cost (£) |
| 3D printer Electricity cost | 0.0095 | 100 | 20 | 0.96 |
| 3D printer technician | 12.68 | 1 | 20 | 253.6 |
| Total cost for 100 units = £254.56 | ||||
| Cost for 1 unit = £2.55 |
| *Estimated price per Kwh in the UK (United Kingdom) is £0.189 (2021) |
| *1 printer uses 0.05 Kw/h |
| *Estimated work hours a year are 2000 hours |
| * Estimated 3D printer technician salary £25,367 |
| *All Manufactuing costs are calculated when running 100 prints simultaneously a day for 20 hours |
| Total manufacturing cost = Total material cost + total machining cost |
| 15.28 + 2.55 |
| Total manufacturing cost = £17.83 |
With a 20% increase margin (£21.40) so that the product makes a profit as well as covering any unexpected costs. The final product cost will be £21.99
Cost Survey
Candidates are asked an open question of how much they would be willing to pay for a water bottle rocket kit up to £50 and the results are recorded.
Survey results showed that most potential customers would be willing to spend £25-30 on a water bottle rocket kit.
This means from our survey it is safe to assume that future potential customers would be happy with our chosen price of £21.99
Note: Candidates during the survey were not told about any extra features such as ability to reprint parts or access to the website, making it safer to assume that customers would be happy with the Value of they receive for the price they paid.
References
- Carolo, L. (2021). 3D Printer Material Cost: An Overview. Available: https://m.all3dp.com/2/3d-printer-material-cost-the-real-cost-of-3d- printing-materials/. Last accessed 03/04/22.
- – indeed. (2022). 3d Printing Technician salary in United Kingdom.Available: https://uk.indeed.com/career/3d-printing- technician/salaries. Last accessed 05/04/22.
- – Smith, A. (2021). Energy – KWh explained. Available: https://www.gocompare.com/gas-and-electricity/guide/energy-per- kwh/#:~:text=According%20to%20the%20Department%20for,2021%20 was%2018.9p%2FkWh.. Last accessed 03/04/22.