Quoted from sparechange1974:Lets breakdown the math and come up with a rough starting point just for fun. The ad says 80 full time people and 80 part time along with max capacity of 75 games per day. I believe the ad had some sales fluff in it and for example's sake I used 30 games per day. This isn't my industry or profession, so go easy on me, just wanted to start the business model and see how it works out.
-80 full time people(based on the Linked In ad) at roughly $45,000 per year average including benefits(health care, payroll taxes, etc)
-This gives us 3,600,000 annually for full time payroll or $300,000 per month
-Rent-I'm guessing here, but lets say they pay a $50,000 rent factor per month
-30 Games per day average assuming 20 days production per month=600 games per month.
-Part time labor-$11/hour times 80 people 20 hours per week=76,266 monthly cost
Labor only =$426,266 or $710 per game(this is assuming 100 percent efficiency which probably never happens), parts delays would add to labor costs substantially. This would be the slow bleed to bankruptcy in the manufacturing business I would think.
Parts cost= -$2800-$3600 Pro vs Premium
So this gives us a rough cost of:
$2800+$710 labor=$3510..00x 25% margin(on the pro) =$4387.50
$3600+$710 labor=$4310. x 40% margin (on the premium)=$6010.00
Maybe labor is higher and parts are lower(not my industry) and this is just for fun. I didn't do the LE, but obviously this would be the highest margin by example.
I cld see the numbers being around that .