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Roy Seiders explains why small Texas tackle and hardware shops agreed to stock a $300-400 cooler when big brands sold them for about $40.
“None of those guys were selling coolers. Although every single customer that was walking through their door was a cooler user. … it created a huge void in the market because a small sporting goods store with limited square footage, they can't make any money off of a $40 cooler. … We showed up with this 3 or $400 cooler. … they could put $100 in their pocket after they sold one.”
Roy Seiders, co-founder of YETI
Roy Seiders explains that small outdoor shops did not sell coolers at all, because a $40 cooler from the big brands earned them only a few dollars. YETI's expensive cooler gave each shop about $100 of profit per sale, so a high price was what won them shelf space. The insight is that a premium price can be a way to make retailers want your product, not just a way to signal quality.

