Look at your BOM. At the qty's you expect to build, can you offer a discount since you will be producing more units and getting a break on materials?. Reduce cost by checking with CM's to see if they can reduce your costs. Bottom line is that your distributors intend on making money when they sell it, why shouldnt you? IF your product is better than others, or fits a situation that no othe product does perhaps you can charge a premium. What happens if you tell these people there is no OEM discount? Can they go somewhere else and get the same thing? Lots of questions.... __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com _______________________________________________ http://www.piclist.com PIC/SX FAQ & list archive View/change your membership options at http://mailman.mit.edu/mailman/listinfo/piclist