Scot
Salad Dressing Empire
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Ok, so I've watched several episodes of Shark Tank, the ones scattered randomly around YouTube.
I don't live in the US so I'm not sure where I can watch all the full complete seasons and episodes.
This one:View: https://www.youtube.com/watch?v=dXQiE-f9RuM
At 4:47, the lady tells Robert she's selling the homebake cookie kit between US$7 - US$12.
At 4:54, Kevin asks her what's the cost to make one kit, and she says US$3.89.
Then the sharks exclaimed in exasperation saying the margins are not high enough?
If they're selling for say, average US$9, and cost per kit is US$3.89 (with overhead and everything), that's US$5.11, more than 50% margin. Exactly how high of a margin do these sharks want? 200%?
For food products, you need really big margins because you have to wholesale. Often times there’s a distributor in the middle two, so there’s the price you pay, then the price you sell to the distributor, the the price they sell that to the retailer, and the price the retailer sells to grocery. Everyone wants 60-100% profit margin.