Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

Testing various price points for a new retail product is done UNIVERSALLY.

"A vendor KNOWS what their product should cost to make a given return."
The fact that a given selling price gives a desired margin on a known cost can't be the only factor used to make a pricing decision. If a product costs a retailer $5.50 and the typical gross margin in that market is 50%, you would have them sell that product for $11. Yet the incremental margin dollars generated by increased unit sales from pricing the item at $9.95 might surprise you. On the other hand, testing might show that the reduction in unit sales resulting from a selling price of $14.95 versus $11 is little enough so that, not only can the higher price be safely charged, but room is left to allow a sale price at a later time and still earn his normal margin. Obviously the pricing of similar product must also be considered.

Perhaps you might consider using "~!~ Never heard of such a thing" as your signature.