He doesn't really know the exact cost, he's just making the point that it didn't cost very much for WalMart to buy, so selling it for $75 is not below cost.
He doesn't really know the exact cost, he's just making the point that it didn't cost very much for WalMart to buy, so selling it for $75 is not below cost.
I heard a rumor from a friend of a friend that a friend of theirs sold a table top air hockey game to some newb in a Walmart for $75.00 and it only cost the friend $18.00 to build.
Grocery stores do this all the time. It drives traffic to the store and you probably end up buying some high margin product as well. The grocery stores tend to do it with things like soda 5 cases for $10.