That is a number that is used when you are selling through a distribution
chain. I think that Ten Tec's ratio is much lower. When we sold high volume
products directly to an OEM, our multiplier was 1.3 to 1.5 and we made a
nice margin. No middle man, no significant marketing or sales and it kept a
nice constant load on the factory.
73,
Tom, W7QF
-----Original Message-----
From: tentec-bounces@contesting.com
[mailto:tentec-bounces@contesting.com]On Behalf Of Jim Reid
Sent: Monday, March 10, 2003 7:06 PM
To: tentec@contesting.com
Subject: Re: [TenTec] Misc. Orion comments
> Manufactured cost X 5 = Retail price.
Manufactured cost = prime product assembly labor
and materials, only.
For a Growing company, x 6 those two factors alone
will pay all other costs, marketing, equipment, G&A, rent,
etc., etc. and also enough profit to keep on investing
in new products and employees. Tain't all profit and pocket
money, hi.
73, Jim KH7M
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