My take is a bit different…

Price is almost strictly based on whatever the market will bear.

Manufacturing costs, volume, location of dealers, scrap rate from QC, logistics, etc, etc, etc, all add to the equation later, which then generates a profit margin.

That profit margin (forecasted) determines whether or not the initial investment is made, and if the product ever comes to the market. Its cases where the final price is overestimated and/or the manufacturing/distribution costs are underestimated, which result in lower than expected profit margins. That typically drives the unfortunately common story of retailers or manufacturers having trouble or going under in the worst case…

The correct route is to ensure the price is high enough to keep volume yet ensure some safety room on profits, while I’m sure most are working like crazy to minimize costs and stay afloat on such a small market size… Sweat equity often helps, which means the retailer really isn’t making what they should be for all the work they put in.

Kelly