Interview with Rondi D’Agostino, President of Krell Industries

“You can’t just pull the price out of thin air, or rely on a parts-cost-to-retail-price ratio. No, the price has to be based on how the heck much did it cost to build the product. You’ve got to account for every last thing—parts, labor, factory space, sales expenses, advertising, and the cost of doing shows like CES [the Consumer Electronics Show]. Oh, and parts/price variability can kill your profit if you don’t watch out. Let’s just say, it’s hard to get rich manufacturing high-end electronics.”