“Five dollars was the magic price point,” John Spirk recounted for Smart Business. “Now it could have been $10 but we tested sales at $10, and they dropped like a rock after that. It still would’ve been successful but it would never have been the super product that it was.
“We had to manufacture it for $1.25 — batteries, motors, gearboxes, housings, packaging, shipping, displays. That was a challenge, but we knew it had to be $1.25 because we wanted a 50 percent margin. You’ve got to do that. You can go into a store and say, ‘This is a great product but you have to get a certain percent markup.’ It doesn’t work that way, so you have to have your numbers right."
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