?
"Kent" > wrote
> It has to be a hunk of junk. When the vendor pays for a half hour
> demonstrating a product like that on TV, that increases the "cost of goods
> sold". That's accounting language for 1.price of the product 2. payment
> for shipping, wages, etc and 3.advertising, as on TV. Beyond that is
> profit on the "goods sold". There's so much spent selling, far more than
> selling expense in a store, that the product has to be a "hunk of junk".
> There really isn't any way around that.
>
> Kent

It may be junk, buy your analysis is wrong. Selling through retail outlets
is very costly. The cost of goods is usually no more than 25% of the
selling price. Direct selling allows for higher profit at lower selling
price because the middle man is out of the picture.

Some years ago I worked for a company that made hobby goods. The normal
discount to the wholesaler was 50/10/2 and over $500 we paid freight.