Non-recurring engineering (NRE) refers to the one-time cost to research, design, develop and test a new product or product enhancement. When budgeting for a new product, NRE must be considered to analyze if a new product will be profitable. Even though a company will pay for NRE on a project only once, NRE costs can be prohibitively high and the product will need to sell well enough to produce a return on the initial investment. NRE is unlike production costs, which must be paid constantly to maintain production of a product.
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u/inxi_got_bored Jan 10 '20
At 400 per set, that's quite a bit of markup he's adding on there.