Guys i notice the nitecore tm26 here http://www.fasttech.com/products/1601/10001842/1282901-nitecore-tm26-tiny-monster-quadray-4cree-xm-l-u2-3 is 251usd
Even cheaper with BLF coupon code 
YEAH Y correct i forget the coupon code!! 
How much does the code save? 5% ?
5%
PRICECONTROL?
No, price not controlled ;)
Fastech's prices are so insanely low. I don't see how they can stay in business with having such a small profit even on a TM26.
Its because its sold in a chinese market, where huge profit margins are to be had by unknowing westerners. Believe me, they are still making money.
Well, I would say the cost price is actually not a lot. It’s the brand.
Sales volume. Where others try to set a price to gain a higher profit margin, FT sells much closer to cost.
They also know that a person who goes to them to purchase one item because of a fantastic price on it, is likely to order something else while they are at it.
Same approach as taken by retail giants, and amazon... lower profits per sale, but greater chance to increase sales on peripheral items, increase customer base size, developer loyalty, etc,.
I don't think they would see any decrease in profit if they had more ideal pricing. There aren't enough "average" consumers looking for flashlights over $250. The ones that are looking for a light that costs that much will buy the light if the price is within the price of the competition.
I would agree with you about Wal-Mart but there isn't exactly a million people looking for a TM26 like there are people looking for groceries at Wal-Mart. There is a very small portion of people that want a +$250 flashlight. If they are wanting one they are willing to pay quite a bit for it.
Here is my theory, we'll use the TM26 as an example. Over the course of a weeks time there are 20 people that visit the site who are extremely interested in buying a TM26. Lets just say each TM26 costs Fasttech $200, shipping costs $15 and $5 for other expenses, so $220. To make a long/boring story short this is what I would expect to see:
$240- 16 people order the light ($320 profit)
$280- 10 people order the light ($600 profit)
What I am trying to get at is the small profit margin strategy only works on goods that are in high demand. The TM26 is not one of those items. I mean we think it is because we are flashohilcs but as a business it isn't.
While that's true, in so far as your numbers are concerned, we are missing a crucial piece of information. The actual dealer cost of these lights.
We know for a fact that Nitecore employs MAP pricing, which usually indicates at least a 20% margin on products, but often in the 30-50% range. That is part of why MAP is used, to prevent dealers from undercutting each other.
You are also thinking of these lights, and prices as singular, and how one person with one kind of item will price things. While it's true that the number of tm26 purchases might be low, the overall number of lights sold is significant and worth looking at. FT stocks thousands of items... they are not priced individually. They will be priced on a sliding scale, with an absolute break even margin, and lower margins on higher value items, but higher margins on low $$ items.
At the overall sales volume that they have, they are definitely making a decent profit. What sets FT apart, in my opinion, is the quality of service. Not so much the pricing.
If only this thing was XM-L2…
In my example I included the cost is $200 for each TM26. Which is lower than my cost but I assume they buy way more than me so NiteCore gives them a discount.
By the way the MAP price for a TM26 is $390. There are a tons of dealers breaking that rule and it makes it nearly impossible for me to try and sell them at MAP.
Even on their cheaper flashlights they are making a small profit. I think you would be surprised at how little they are making. I am a dealer myself so I see first hand what the costs are for these items. Granted they buy more than I do but I ask what the cost would be for large quantities just to see.