, normally sold direct to the end user do not require the same distribution costs and sales price levels require 20-30 percent of the selling price to cover the costs of the middlemen who may be needed to move the product to market. It is here that many entrepreneurs make the first error in commercializing a new product, invention or innovation. They are often not aware of the costs that will occur in moving a product from the manufacturing floor to the customer’ s home or the end-user’ s plant. Essentially, there are four broad areas that must be paid for out of a new product price: