How can they afford to make a printer this cheap?

I don't see how it is possible to make 3D printers for only $199-$299. I mean if you build your own RepRap you are paying more than that. How can M3D afford to sell them at this low price and still make a profit?

I am going to guess that their costs are around $190 to $220 or so when mass producing these. They may even be taking a hit on those $199 models, just in order to get the Kickstarter project off to an amazing start, which has apparently worked. So basically they will make $100 per printer sold, maybe a bit less. Remember this is smaller than your typical reprap. The Micro is called The Micro for a reason. It's tiny! What M3D is trying to do is take advantage of economies of scale. The more they produce the cheaper they become.

There is a lot more to consider in production costs than just buying parts and putting them together. Just because a machine may be "smaller" does not always mean "cheaper" production. Things like electronic boards stay the same price no matter how big or small a machine. The only two things that drop the costs are buying in bulk or make them yourselves. That brings up another issue. To fill an order of 7,000 machines a manufacturer will need help. That also drives up the cost of production. Unless you spend 5 years and do not sell another machine. Kickstarter is a great place to introduce a product. But those who use it must understand that it isn't a business.

Ummm, have you been in the manufacturing business long? Sourcing a machine with proven sales is alot easier than getting a bank or contract manufacturer to back your first production run.

I must be missing something. I am not quite sure how your comment about financing address what I posted.
But just in case my point was not clear I will say it in a different way.
People are curious as to how someone can sell a machine for $200-$300 and make money. Most people are just bringing up buying parts. What I am saying is there is more to production than just buying parts which you must consider in the price to sell your product for. Sure there is the high volume = lower cost and low volume = higher cost formula.

People are comparing one person going out and buying parts from an online warehouse. Versus going directly to the motor or electronics supplier with an order for 10,000 of the same thing.

Want to do a an example of cost comparison? Because I am talking about buying 10,000 parts.

Sorry, I'm not really sure what you are talking about now.

Lol
I almost said the same thing.

Perhaps they have some new technology or method of building these printers that can significantly drive prices down. Not to mention they will be making a ton of these. Economies of scale certainly help.

Mass production allows for cheap parts. It'll just be interesting to see how they can put all these printers together. That will take some serious labor time.