That is correct. The 20% also function as safety buffer in case of price fluctuations.

DataTank: Sources and produces ASIC boards in-house without third parties involved for significantly more than 20% cheaper (relies on experience producing past ASIC boards and direct connections to designers/manufacturers). There are no profits involved through the complete chain and we are on-site for manufacturing, and on-site for deployment. Case in point. We produce hardware at today's prices for <$438/T (<$0.44/G). This compares to the price of other hardware available.

Traditional: Buys ASICs, components and PCB from third parties. Relies on manufacturing for third party. Needs to add mechanical components such as case, fans, heatsinks, screws, nuts, switches, cables.  Needs box and packaging. Needs logistics. Needs profit margin to make money. Needs to sell with customer support, billing, needs to cover NRE expenses. This total cost will be significantly more than 20% margin. In addition, when the end-user receives hardware, the costs continue. Power supplies, installation, deployment, overpriced data center rent, etc
These are some of the problems that DTM solves.