• In this chapter you can find some rough calculations on he production, transportation and storage costs of the dentibox. You can also find the estimated break even point to make DentiBox a profitable product-service system.

• Production costs
• Interdental brushes, toothpicks, dental floss, easy picks, single tufted brush:
• –    In mass production manufacturing one piece is around 6,2 cent.
• Chewing gum with xylitol
• –    In mass production manufacturing one piece of gum has an average cost about 3 cent.
• Rinsing waters
• –    Mouthwash has a manufacturing cost around 0.85 euro/liter.
• Tongue scraper
• –    In mass production manufacturing one piece is an average of 21 cents.
• Packaging
• –    The packaging total is around 10 cents in total.
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• Oral B costs 
• The toothbrush can the client so it’s not calculated with. Because when they added it the price was going up for 1 quartile with the toothbrush. The price of the toothpaste and brushes are from the Oral-B site. Because of the collaboration and we need a lot of it, we need to close a good deal for the buying prices of the goods. So we took in this case 10 percent of the normal buying price. In reality this will be different.

• Storage cost The Netherlands
• The storage costs are calculated by first calculating the total volume and then multiplying it by the average square meters costs. 

• Storage cost China
• The storage costs are determined by 3 sub costs and multiplied by the volume. The volume was already calculated at the transport costs. 

• Transportation costs from China to the Netherlands by boat
• First the total volume is calculated. Then with the measurements of one container the total volume is calculated. Both data are divided, with the costs of the container transport. Then the transport costs are the result.

• System costs
• The system costs consist of average numbers of the costs of the website and app. Of course it can differ but it will be around these numbers. It depends on how complicated the app and the website is made.

• Total operation costs
• The total operation costs above are calculated above and added up.
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• *Dentist costs are the costs that the dentist is making extra for the dentibox, time of filling in the form.

• Total costs
• The total costa, are the costs from every cost added up calculated above, so production cost and operation cost.

• Price ‘DentiBox’
• The price of the DentiBox needs to be higher than 5 euros per quartile to make profit.
• To calculate how much the DentiBox should actually cost. First we calculated how much people would spend right now on dental health care products.
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• Oral care is often discounted and most people buy these things at a discount. That is why, of course, this gives a bit of a displacement, so if we take 75%, we arrive at 30,75 euros. This is per quartile.
• What we as a ‘DentiBox’ provide is not only the products. But we provide much more service than just the products, our products are also of good quality.
• We want to get the maximum profit out of it. In the beginning, when the service is not yet well known, it will not immediately make a profit due to the operating costs. But after that when the service is known the profit is made quickly.
• Good price for the DentiBox is average around 15 euros per month, then it’s a little higher than what you normally pay but you get a lot of extras. The price of the DentiBox depends on how much a person needs so the price differs. Do note that after a while your oral health improves and therefore you need less products to keep it at this point, this will make the subscription cheaper and cheaper.
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• Break-even point of the first quartile with an average profit of 45 euros. So when we sell more than 14000 subscriptions then we make profit.
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• Disclaimer
• To start off, the total costs (2.5 million euros) for the first year might seem a lot. However, this is an estimation and there are a lot of ways to reduce this. For example a lot of the total cost could be reduced by using brands that would supply us products so they would get promotion (Read logistics). This way the costs could be reduced significantly. Also, as this is the ‘start-up’ year it is more expensive than the following years, this will also reduce the costs after a while. Next to this the costs of our subscription also seem to be a bit on the higher side, this could reduce as well if we were to use products that use our service for promotion.