Thank you for your responses.
A previous company I was associated with did have distributors that bought a beverage intended to retial for $1.99, at a price of $28.80 per case and then resold them for $32.
I knew there side arrangements to allow such a margin but I was unaware of the terms of the agreement.
I am now getting ready to strike out on my own and what it boils down to is if if the beverage is intended to retail for $1.99 each, what should the cost to the distributors be to allow for a good margin at each step.
Right now I get the idea it should be about $25.
Am I wrong ?