The container maths: what 1,000 SKD kits actually earn
A worked example of local assembly economics: kit cost, labour, test bench, selling price and the point where the setup is recovered.
The starting numbers
One thousand 100 W all-in-one kits, landed at about USD 105 per unit including freight and duty. Local assembly, including labour, consumables and test time, adds about USD 12. The finished unit costs USD 117 before rent and finance.
The selling side
In most African and Gulf markets the imported finished unit lands at USD 180-200. A locally assembled unit with the same components can sell at USD 200-220 and still be the cheaper option for the installer, because the spare parts are local and the delivery is a week, not a container cycle.
What the setup costs
- Jigs, torque drivers and hand tools: USD 5,000-8,000
- Test bench and burn-in rack: USD 8,000-15,000
- Initial spare components: USD 5,000
- Training and SOP video: USD 2,000
- Working capital for one container: USD 105,000
Where it goes wrong
The model fails when the local unit is not tested to the same standard as the imported one. A 3% failure rate at 14 months is enough to wipe out the margin on the container. Test every twentieth unit, keep the log, and treat the bench as part of the product, not as overhead.
Send the site details.
Road width, water source or the package you are bidding. We will reply with the configuration and the arithmetic.