I've not been involved in manufacturing since I was a kid. When my dad owned a factory, it was 50%, if the cost of something went up a nickel to them, the price went up a dime. While I frankly thought it wrong to make a bigger profit because your price wrose, I also hate it when Govt. adds a tiny tax on anything.
Why? Because if you add a nickel to the price of a beer, every bar in the country will add at least a quarter, some will go up 50 cents, some a dollar, few will leave the price untouched. It's like stamps, I'd rather they be incremented in nickels rather than pennies, that way when it goes up, the new price is more likely to last for awhile. Pennies actually cost more to make than a penny, we really should abandon them.
I'd suspect that the markup may vary by the customer, some who do huge volumes get a discount, others buying retail pay retail. In that most things PCTL sells are sold through distributors, it's very possible that when PCTL sells the distributor something for $100, it cost them $50 to make it, the distributor retails it for $200. If someone wants to buy direct from PCTL, to not undercut their distributor, their price would be $200.
When I was in Japan many years ago the hotel manager explained to my why the Japanese prefer to buy Japanese products in the U.S. It's dramatically cheaper here because the Japanese have numerous middle men. Everything is marked up many times, so if they want an expensive camera, watch, etc that's made in Japan, they come here to buy it and can essentially vacation for free if they're purchasing enough. I don't know if it's changed over the years, but he made it sound like a tradition that wouldn't change.
Gary
