I’m talking to a brand and they are interested in adding us as an Amazon sellers if we perform some value added services. The problem is, current pricing only gives me an 8-10% margin for which I have no left over profit to provide such services.
How do I come to mutually beneficial terms to make this deal work?
I’ve heard it said that creating a deal is all about finding the Brand’s pain points and solving those issues. A big one for this brand is review control and generation. Maybe I should just state that I would like to grow with your brand but, in order to do so, I need to have more margin to put back into advertising activities. In particular, I would like to develop a better review generation system for your brand.
If this isn’t their main pain point, than I need to ask better questions to find out what is. Maybe I can’t get the 20% margin but I can get a margin that allows me to do the one thing they really would like someone to be doing. After demonstrating value, maybe I can further negotiate to open the brand up to the other value added services I can provide.
What other negotiation practices would best open the brand to my proposed deal?
I would tell them you need more profit margin to preform the work. If they don’t like it. Just hang up, and watch their band get worse or worse.
You could also find a competitor and that a JS screenshot of monthly sales. Also take a screen shot of theirs. Show them after 3 months how the competitor went up and they haven’t. That should get their attention.
Sometimes a BFH (BIG F*****G Hammer is what is needed for the thick skulled people/neanderthal