This is something I've never quite understood. I built my own LPM using maybe $20, if even that worth in parts. The only thing I would need to do to make it look professional would be get an enclosure box for it (which would cost another what, $5?)
Point is I don't understand the high price tag for LPM's. I know labor and development obviously contribute to it, but for a basic Analog LPM, it seems like they could easily sell for $40-50!
Because I don't have the knowledge to build them.
However, I went over numbers the other day to find my minimum markup when I begin selling again.
assuming i have a part that cost me $0.87 per items...
cost to me = $0.87
Mark it up 250% ($2.18) = $3.05
Charge shipping ($1.75) = $4.80
So total shipped would be $4.80.
I receive payment and paypal takes 2.9% + $0.30 ($0.44) = $4.36
30% (of total sale price) is set aside for taxes. High, but better than owing the IRS ($1.44) = $2.92
Shipping purchased ($1.75) = $1.17
cost of item for restocking ($0.87) = $0.30
This does not even include packaging material. such as envelopes baggies, bubble wrap, poly bags, and the most expensive of all is the time.
the pricing is not as extreme with higher dollar items but you can see how the little things that don't seem like they would make an impact on their own, quickly add up and bite you in the ass.
This is why people do group buys, and add on just $1 or $2 to each itme and end up having to pay out of their own pocket to finish the buy.