Retail items on Quote need to be retail and each

Hey all

I have entered a new item into my Flex instance as a "non-serialized Model" and I am having issues getting it to show up properly on the quote. 

I want to create a "Custom Steel Gobo" retail item. When I "Edit the Inventory Model" I select what I think is the appropriate settings for this item, "non-serialized model" on the preset and Expendable set to "yes". 

My hope is that I can create an item that when dragged over to a quote will show up defaulted as a "retail" type and rate is "each." Is there some setting that I am missing here? 

Under the item, the pricing tab only has "each" enabled with a check box and a price and yet it still shows up on a quote as "rental" with no rate when I drag it over. 

Any help would be appreciated. Thank you