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How do you arrive at this figure? When you purchase items like t-shirts and cd's in bulk you usually get a pretty sizable discount.



I looked into it...he's a little high for just flat cost, but there is a lot of labor I didn't account for:

http://news.ycombinator.com/item?id=1382563


COGS + shipping + logistics

Also, founders' time, which is probably the most costly part.




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