new product development

Hi John,
I've found a few hand-made products in the US so I sent some samples
to my trading company in Hong Kong for price quotes.

They replied by asking if I want to have the items hand-made to
produce *exact* replicas or with tooling for mass production. They
also asked what quantity and FOB HK target price I have in mind so
they can work with the factory on pricing. Let's say this hand-made
product in US retails for $30. What is a good *retail* price for it
with mass production (and maybe hand-made in China)? Maybe we can work
backwards and figure out a reasonable FOB price? What should my profit
margin be? What would the retail price be? I think an equation would
look like this:

FOB = Retail - (Freight + Tax + my markup + retailer's markup)

Now I am completely lost because we have so much unknown. To get
started I would need to know the Retail first and work backwards.
Please help!

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