Originally Posted by
RBP
I wish I was the one who benefited from that. The powerful catalogs used to set their margin requirements for placement (I assume it has changed). Often it was a 200% markup (cost of good sold @ 33% of retail). Meet their demands or fuck off. I just decided I wasn't lowering the margin on my end and rolled the dice with the price point. I guarantee you, the other guy sold his soul to make pennies (or take a loss) just to get the placement.
But yes, that used to be the equation. $1300 retail meant the catalog paid $429. I got my Korean factory cost down to ~$250, wanted to always wholesale at $500, but had to give up margin sometimes for volume.
That is why the internet killed catalogs. It's not just the medium, it's the margins.