I don't think 4-5 times the manufacturing cost is unrealistic, I think it's a pretty standard number. Sure, some items like cables, bottled water or sneakers return 20 times the manufacturing costs, but they are in the minority...I hope. Keep in mind that we are talking about the big name mainstream manufactuers here, not manufacturers who can sell direct to the customer, which pretty much knocks 40% off the cost right up front.
Remember, there is a lot of money being spent on trade shows and free samples to help market products. I know a turntable manufacturer who has dozens of very expensive cartridges given to him as gifts. He also has given out gifts, I'm talking in the $10K+ per unit range. That's serious marketing!! So I still say that 60% of the cost goes to the manufacturer and is equally split between R&D, Manufacturing (including parts) and Marketing (including advertising). 40% is dealer mark up.
On another note, I also know more than a couple manufacturers who have come out with more expensive products because their dealers have told them that the market demands it. Just look around at all of the manufacturers whose top of the line product today is double the price or more than their top of the line product 5 years ago. There is a LOT of people with a LOT of money out there....I wish I was one. ;)
Remember, there is a lot of money being spent on trade shows and free samples to help market products. I know a turntable manufacturer who has dozens of very expensive cartridges given to him as gifts. He also has given out gifts, I'm talking in the $10K+ per unit range. That's serious marketing!! So I still say that 60% of the cost goes to the manufacturer and is equally split between R&D, Manufacturing (including parts) and Marketing (including advertising). 40% is dealer mark up.
On another note, I also know more than a couple manufacturers who have come out with more expensive products because their dealers have told them that the market demands it. Just look around at all of the manufacturers whose top of the line product today is double the price or more than their top of the line product 5 years ago. There is a LOT of people with a LOT of money out there....I wish I was one. ;)