Markup and profit margins

[DrummerDad]

So, Im working on my thing here, and Ive come to a little problem. I have no sales or retail experience, so I dont know what to charge. Ill throw a few numbers out for reference. I hope this isnt as confusing as it looks.

My item includes three base components, and Ill label them, part A, part B, and part C. Where A is an adapter, and B and C will always be sold as a set, and they are called a top set.

So, I need to be able to sell them as such; A base kit will be one part A (adapter), B, and C (one top set), for a total of all three parts. 1A+1B+1C=3 pieces.

A pro kit will include; One part A (adapter), and 2 each of B, and C (two top sets), for a total of 5 parts. 1A+2Bs+2Cs=5 pieces.

Part A (adapter) will cost me $65 to have completed. Items B and C (top set)together will be around $133 complete.

This is an item that has no equal on the market. There is no other item even close to it, so you would think the sky was the limit. But I know a person can replace the item Im adapting to, for $750-$1200, bypassing the need to buy my item. Think of it as a spare tire for a car (with part A being the lug nuts, and B and C being the tire and wheel) , where a person can replace the entire car for $750. So if I go to high, they will just bypass me altogether.

I was thinking about charging $300 for the base kit (1 part each A, B, and C), and $500 for the pro kit (1 part A, and 2 parts each B and C), or $100 for part A, and $200 for the top sets, or parts B and C together. Gross profit would be $113 for the base kit, and $169 for the pro kit. Each additional top set (1 part A and 1 part B) would be $200.

Is this enough? Does any of this make sense? And is there enough margin left for any retailers to mark up? I hope this makes sense, Im kind of tired.

 

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[Likwid24]

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