How much money should I charge the retailer for this type of product? A simple question you might think?
Big shot buddy
In search of competent advice I got hold of an old friend and a high rolling international business man used to make huge international strategy’s and other big shot stuff for mega corporations.
Out of the league
It was really nice of him to take time and help me out but his range of expertise was above and beyond this task. And I was so clueless that I hardly knew what to ask. The one thing I knew I didn’t know was pricing and margins. What should I sell my little drill bit holder for?
Sadly my friends approach went completely off. He was used to negotiate deals for million dollar high tech equipment and now tried to implement that knowledge to my tiny rubber holder. On top of that I wasn’t really providing any helpful numbers to the equation. The conclusion was that I had to sell over 100.000 units just to go break even. This was waaaay of the spot and would haunt me for quite some time
The correct answer to my first and most important question was answered over two years later. But during that time I desperately went on a crazy rampage ruining many of my business prospects. But that’s another story I will go to depth with further on.