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It is not always easy to understand what lies behind the price of a product. To be transparent, here is a brief explanation of what affects the price of a product in the online store (iNVINTIX.com).
As an end customer, you're not only paying the actual production cost of a product. From producer to consumer, there are often many stages. A store/retailer often buys a small amount of goods from a wholesaler. The wholesaler has in turn purchased the goods in large quantities from a distributor, or directly from the manufacturer/factory. All intermediaries between the manufacturer and you as a customer will of course make a profit on what they deliver. Therefore, the more such intermediaries there are, the higher the price will be.
iNVINTIX sells primarily (but not limited to) self-designed products. We deal directly with the manufacturer/factory that produces the goods on our behalf. Thus, these intermediaries are avoided. Now you might think that this immediately means cheaper products. And that's true in a way. However, our self-designed products are exclusively sold by us and are not available at other retailers. Therefore, there exists no other sources for price comparison.
The price of an item at iNVINTIX is roughly dependent on four cost factors: production of the item itself, operating costs, VAT, and profit. There are no expensive intermediaries, or physical outlets that would increase the price considerably.
These four factors can be summarized as follows:
Production
Costs associated with the production of an item include raw materials, setup and adaptation of production tools and machines, the production itself, as well as costs related to quality control. Prior to large-scale production, one or more prototypes are created to ensure that the product functions optimally as intended. All our keyboards and keycaps are prototyped, which is quite an expensive affair since the product is then produced in only a few copies (with several revisions if the first prototype is not found good enough).
The cost of a product can vary greatly, depending on factors such as material selection, complexity, and the number of items produced. Materials such as aluminium are more expensive than plastic, and different types of plastic also have different prices. PBT, for example, is more expensive than ABS. A higher quantity of a product will normally result in lower production costs per unit. A print run of 10,000 pieces results in a much cheaper product per unit, compared to a print run of 10 or 100 pieces. After the product is finished manufacturing, it must be transported from the factory to the supplier's warehouse, and this also has a cost. In addition, VAT and customs fees are charged on imported goods.
Operating costs
Under this item are costs related to operations, including expenses for software, website and domain, payment solutions (Vipps, PayPal etc.), accounting/software, postage/shipping and agreements with shipping companies, office supplies, other necessary equipment and packaging.
Value added tax
In Norway, VAT of 25% is always added to the price of an item when it is purchased by a consumer. It is important to point out that this tax does not go to the company itself, but to the state.
Profit
This is the profit the company is left with after production costs, operating costs and VAT have been covered. The profit margin for each product is determined by the company's objectives and strategies. In any case, it is important to have a certain amount of profit to maintain the company's sustainability, and avoid bankruptcy.
Our strategy
iNVINTIX started as a sole proprietorship, driven by a genuine enthusiasm for mechanical keyboards. The company does not have any external investors or shareholders; all capital is derived exclusively from online store sales. Which means that the expansion of the assortment and the launch of new products depend on existing sales.
If the range of products is perceived as limited, this is a natural consequence of our strategy and business model. The objective is not to compete with major players such as Keygem, Candykeys and Geekboard in terms of price or product range, but rather to provide unique, self-designed products, personalized customer service, and to be a contributor to the mechanical keyboard community. We aim to be a valuable resource for beginners and enthusiasts alike – whether you're curious or already deep down this fascinating rabbit hole.