The margins are the gross profit the retailer received for selling the product. When Capstone sells straight to consumer they can charge less and/or take a higher percentage of profit because they cutout the retailer. If a retailer is to let your product in a store, they usually demand a minimum margin so they can make profit from selling your product. If they were to sell it for the same price as Capstone does online, Capstone would make no money cause their profits would go to the retailer. That is why they need to increase the margins so they both profit.
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