Back in the 80s, I used to sell Datalight C and Zortech C++ through mail order distributors. I was shocked to discover they paid us about half, or even less, of what they sold it for.

But they were all like that. It's what the manufacturer has to pay for distribution.

Just try running a store, or a mail order house, without doubling what you pay for the merchandise. You'll go bust if you don't.

If a customer called us direct to buy, it was priced at about the same as what the resellers sold it for. But, of course, then we had to pay the expenses of fulfillment staff, space, etc.

Many people are outraged by this doubling of price from manufacturer to retailer, and start a business believing they can undercut the other retailers and cash in. They get a rude awakening with how much it costs to run a retailing operation. They confuse "margin" with "profit".