5 ms·
Is it a 50/50 partnership with the farmer? What was that negotiation like?
by iooi 7y ago
Is it a 50/50 partnership with the farmer? What was that negotiation like?
- eightturn 7y agono kidding, here was the first negotiation. I'm at the shed, in the front office with the farmer. We talk about whether this could work. We realize it might. I then bring up how to split money. From my side, it seemed fair to pay him more, so I suggested they keep 60% of profit, and I keep 40%. He nodded, and agreed. So we went with that. We changed it slightly over the years, but it still falls around that range. You wanna know funny thing? UPS makes the most on the entire transaction (as we roll in shipping costs on all our orders).
- barneygumble742 7y ago> UPS makes the most on the entire transaction (as we roll in shipping costs on all our orders) And this is what every company finds out eventually. Shipping is key and out of your control. Thus, Amazon starting its own fleet of air carriers.
- omarchowdhury 7y ago> And this is what every company finds out eventually. I wouldn't say every company. Just the ones shipping products that are relatively heavy.
- nathancahill 7y agoNot even. Tried to start a small (friends and extended family) coffee roasting business. Most of the margin shipping a 12oz bag of coffee after all other costs is eaten by flat rate USPS shipping. Only made economic sense at a much greater scale, or for orders > 5lb.
- oh_sigh 7y agoCan you just stick a stamp on the onion and drop it in the mail? I think there is a potato shipping business that does this
- perfmode 7y agoConcurrency!
- deleted 7y ago[deleted]
- degenerate 7y agoOr even cheaper, just ship the seeds and tell the customer it's a pre-release alpha product, like the game companies do.
- greenie_beans 7y agoYeah, what sort of USDA issues do you need to fulfill in order to ship food like this?
- zhte415 7y agoThe skin would fall off?