UTTER NONSENSE:
Retail returns more cash per unit sold:
Knowing that the COGS for OEM and retail are the same, let's look at the revenue per channel:
Retailing at $29.99
OEM at $5.00, maybe
If COGS was $2 per unit the net revenue would be:
CHANNEL NET REVENUE:
OEM Gross Margin: $3
RETAIL Gross Margin (tryactipatch.com): $27.99
RETAIL Gross Margin (50% paid to the retailer): $13.00
I'd prefer $27.99 or even $13 per unit than $3
Even if $3 per unit (10%) was spent on advertising, I'd still opt for retail as it yields $10 gross net per unit, versus OEM at $3 per unit.
Under proper management BIEL could have been enjoying sales in all three channels.