This is just from my point of view, or from another side, not disputiing anything that has been said here.
When selling you product to a retailer, in order for him to make 35%, he will have to mark up 50%
In Bob's example of:
That means the dealer paid me $65, marked it up 50%, and sell it for $100, to make 35% on his $100 sale.
In order for me to make 25%, in the $65, subtract $6 for FET, now my selling price is $59. To make 25%, I will have to produce that product for $39
Now I have the same expenses on less Gross profit. I have machines, tools, molds to replace or repair, plus the building, but no traffic.