In business distribution, distributors require sufficient profit margins to sustain their operations; when selling to bulk buyers like farmers, pricing must balance affordability for customers with the distributor's need to make a profit, often requiring strategic negotiation on price points and investment terms.
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This Shark Tank Negotiation Will Shock You #sharktank #businessAñadido:
Why only $5?
>> Why not charge 10 or 12 or 15 or >> Because I'm working with farmers and they're buy they're not buying one, they're buying 20.
>> Why not? I can't get involved with you because there's not enough margin for me as a distributor. I need to be able to sell it for $12 at least so that I can make some profit and you can make some profit, right? Cuz I'm now we're there's two of us, two mouths to feed.
>> Yeah, but you're selling to farmers.
>> I'm out, >> Johnny. Yes, sir.
>> Farmers are the cornerstone of America.
There may be a lot of farmers out there that can't afford $12 per tree, but maybe they could afford $6 or $7. I'm going to give you everything you're asking for. Your $150,000 for 20%.
What you're doing is right, and you deserve the chance to make it big and do a lot of good. I'd like to be your partner, Johnny. I like everything you stand for, man. And I like everything.
>> I think that's a yes, JP. Yes, sir.
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