https://youtu.be/HqL4X4kwGe4

After you watch the video, I would like you to answer the following questions:

1) What are your thoughts on the current profit margins (at the time of this pitch) for these lures?

2) Do you believe that the company's proposed selling prices are preventative to getting the product into big box stores like Bass Pro Shop? In your opinion, should Animated Lure offer big box retail a special price in order to get their products onto the shelves? If so, what is a reasonable price given their costs of production and any other costs they might incur to "land" the product on the retailer's shelves?

3) Would the per-unit royalty that Animated Lure agrees to pay to Kevin be a variable or fixed cost? Would the company have to take this amount into consideration when setting a target price point?

4) Why, in your opinion, would Kevin prefer taking a royalty and 10% of the company instead of 20% of the company. In other words, how does taking the royalty and less equity effect the risk he is taking on by investing in the company?

5) Is Animated Lure a price taker (a company that operates in a competitive market whose selling price needs to be competitive) or a price setter (a company with a differentiated product that can essentially set its own selling price due to the uniqueness of their product)? What makes you think this?

6) Lastly, what are your general thoughts on this product?