[Retric]

Don't forget about advertising which on it's own often adds 20% to niche items costs.

Also, CC processing might be ~3% but it's added on at the end. aka 3% of manufacturing, 3% sales etc. Which can add up to 10% of the initial manufacturing cost.

[systemtheory]

Some companies minimize advertising budget but manage do do very well. Patagonia spends less than 1% of sales on advertising. (http://www.bain.com/publications/articles/brand-strategy-tha...)