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PART 3 : PROBLEMS WITH SOURCED LawnBots decided to use Sourced as their manufacturing partner. All the contracts have been set up and preliminary manufacturing
PART : PROBLEMS WITH SOURCED
LawnBots decided to use Sourced as their manufacturing partner. All the contracts have been set up and preliminary manufacturing has begun while the campaign is starting. This decision was based on the cost per unit being so much lower at only $ unit, instead of the approximately $ unit estimate from Electronics Benchmark. Sourced recognizes shipping costs are high but at a much lower price per unit, LawnBots could make huge savings if the product really took off.
The product did, in fact, take off. Multiple tech blogs and YouTubers noticed the campaign and started building hype for the Automated Lawn Fighter, so the campaign started off a roaring success. The team was elated as it became the fastest campaign to fund in Fundfunder history. LawnBots raised more than $ million within the first hour online and, ultimately, raised approximately $ million in total funding with a total of people backing the project. The team was ecstatic. But when the team received the final bill from Sourced, the LawnBots team was a bit confused. It all seemed off. The new bill was much higher than expected, so LawnBots was making far less than expected at only around $ million in profits. They ran the numbers based on your estimates and thought it should be closer to $ million. Since they had the most successful project of all time, how could they have lost approximately $ million?
The following is the estimated final bill from Sourced:
tableMaterials and Labor,$
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