topic Re: Shark Tank - Bantam Bagels - QVC's Margin in Kitchen

Shark Tank - Bantam Bagels - QVC's Margin

Keebies — Sat, 10 Jan 2015 19:38:46 GMT

I was watching Shark Tank last night (1/9/15) and Bantam Bagels was on. They said they sell to QVC at $19.80/unit and looking at the website, QVC sells them between $49-$53. Granted shipping is included so QVC's margin has to be higher than normal, but that seems really high. I always thought the manufacturer gets a 50% margin and the seller gets a 50% margin - so an item that costs $1 to make, would retail for $4. QVC's margin is a lot higher than 50% in this case.

Lori did the deal so I assume more will be coming to QVC - reviews don't look so good on what they sold so far.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Moonchilde — Sat, 10 Jan 2015 19:44:12 GMT

Wow, the reviews are terrible, aren't they? Lucky for me that where I live, I have access to freshly baked bagels of all shapes and sizes, and fresh deli whipped cream cheese, for far FAR less $$ than these overpriced ripoffs. Good grief!

Re: Shark Tank - Bantam Bagels - QVC's Margin

millieshops — Sat, 10 Jan 2015 20:07:48 GMT

I truly do not care about the margin - my job as a consumer is to care about my money, not that of the manufacturer or the retailer. If I don't like the price, I just don't buy.

I wouldn't buy those bagels and it has nothing to do with the margin. I can buy bagels locally where I can see the ovens they're baked in. I can buy one or a dozen. I bought Lender's bagels - once. Someone gave me a gift of bagels from Wolferman - once (and I'd not waste my own money), etc.

Margin is not the issue, price isn't even my issue. I want my bagels, my breads, etc. from local sources. If it's already in plastic, I'm not buying even if the margin is 10%!

Can't think of a single reason why Ishould care what their margin is - unless I'm invested financially for more than $39 in the company!

Re: Shark Tank - Bantam Bagels - QVC's Margin

scotnovel — Sat, 10 Jan 2015 20:17:23 GMT

There is no set margin that most companies use when setting prices or that the manufacturer gets, like your 50% example. For most companies, margins for each of their products can vary greatly depending on a number of things such as the demand for the product. They can get a higher margin on a high demand product. In a restaurant, for example, the markup on all regular and alcoholic drinks is much higher than it is on the food items themselves.

You also don't mention what the $19.80 per unit means - how many bagels are included in a unit & exactly what does that amount cover. Does it cover just the bagels or are other S&H costs added to that amount, like the fancy looking cardboard basket for each dozen (from the Q pictures) and the dry ice when shipped. Those S&H costs may seem insignificant but will add up, and the manufacturer (or QVC) will recover whatever handling costs they have in addition to the base price of the product. That includes warehouse refrigeration costs, wages for packers, etc.

One unit (from manufacturer standpoint) may include less bagels than what is included in the QVC offerings For example a unit could be a dozen or 24 or any other number and QVC sells in lots of 36.

If I can afford the price for a product that I want or need, then I will buy it. For me, what the company makes doesn't matter unless I own stock in it. I've worked in the financial planning area of a Fortune 500 company and can tell you that it is almost impossible for a consumer to determine how much profit margin a company makes on a given product because there are so many costs and variables.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Nightowlz — Sat, 10 Jan 2015 20:27:19 GMT

Glad you posted who did the deal. I recorded the show & the dvr cut off the end of it. This show seems to run a few mins. late for some reason. I would set up to record a few mins. longer but I always have other shows set up to record. I know I won't be buying any. The price is ridiculous. I know when I worked at Zales when they sent out jewelry repairs they always added on an additional 2 1/2 to 3 times what they were charged. I know where they send some of their repairs & I go there instead of going through Zales.

Re: Shark Tank - Bantam Bagels - QVC's Margin

ValuSkr — Sat, 10 Jan 2015 20:28:17 GMT

No idea what Q's margin is or should be. But I'm surprised they'd disclose Q's wholesale cost on Shark Tank. On the face of it though, the margin seems okay: Q pays $20 for product and $5 for shipping, then marks-up by 100% to cover its substantial overhead and promotional costs.

Re: Shark Tank - Bantam Bagels - QVC's Margin

151949 — Sat, 10 Jan 2015 20:33:07 GMT

IMO - all the foods on QVC are greatly overpriced.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Annabellethecat66 — Sat, 10 Jan 2015 20:35:39 GMT

Wow! I don't mind paying for convenience but that's too much of a profit margin for me.

There are fools who pay too much. Sometimes that's me, but when I do, it's because I'm aware of it and don't mind the profit margin.

However, I don't buy food products (except for the Honeybell and carmel apples). Noth worth it.

Re: Shark Tank - Bantam Bagels - QVC's Margin

traveler — Sat, 10 Jan 2015 20:37:22 GMT

http://www.msn.com/en-us/video/popculture/mark-cuban-reveals-shark-tank-secrets/vi-AA7WhrY

Mark Cuban tells Shark Tank secrets

Re: Shark Tank - Bantam Bagels - QVC's Margin

jackthebear — Sat, 10 Jan 2015 20:38:30 GMT

Since I live in the bagel capital of the the world NY/NJ

I can't imagine ordering bagels anyway or what the market might be for this product and can't you buy a bagel most anywhere now.

Re: Shark Tank - Bantam Bagels - QVC's Margin

millieshops — Sat, 10 Jan 2015 21:10:16 GMT

Seriously - I'm headed to BBB in a few minutes. Should I ask to see the manager and find out the margin on what I'm going to buy? Who knows that kind of stuff about 99.99999% of everything we buy?

Re: Shark Tank - Bantam Bagels - QVC's Margin

Kathlen — Sat, 10 Jan 2015 21:14:44 GMT

Mail order bagels! Perish the thought! I have a bagel shop just down the street, and two more a couple of blocks away!

Re: Shark Tank - Bantam Bagels - QVC's Margin

Luvitorleaveit1 — Sat, 10 Jan 2015 22:12:23 GMT

I saw them on Shark tank which has become one of my favorite shows and before Lori partnered with them the other lady I forgot her name made them an offer as well but she wanted them to cut ties with QVC.

They have a shop in the city so if I wanted to try them I would go there, but whichever direction I walk there are fresh bagels and I love Costcos bagels too.

Re: Shark Tank - Bantam Bagels - QVC's Margin

GCR18 — Sat, 10 Jan 2015 22:19:40 GMT

Can't get a decent bagel around here. All the bakery products are soft and chewy. When I go home to CT, sometime I bring bread products home. Saw the shark tank show. Knew there would be a markup, but that's crazy.

Re: Shark Tank - Bantam Bagels - QVC's Margin

glmama — Sat, 10 Jan 2015 23:07:27 GMT

I caught part of this presentation last night. I was SHOCKED to hear that the Bantam Bagel people say that they sell their bagel holes for $1/each! :-0 Srsly., not much shocks me price-wise, really. But this was a staggering price, IMO. I also heard the part about the Q's margins and was surprised, but not shocked. I think there are certain items that are sold on the Q that require the seller (and presenter) to almost over sell in order to make their margins. Any of that kinda behind-the-scenes info on TV shopping is so intriguing to me.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Kachina624 — Sun, 11 Jan 2015 00:27:49 GMT

Lori has stated before that the Q vendors have to absorb the cost of all returns. So if some customer decides she doesn't like her bagels and wants a refund, it comes out of the vendor's share. It's a win/win for QVC. No wonder they so generously give product away. By the way, I may be the only person on earth that hates bagels. Hard, tough junk.

Re: Shark Tank - Bantam Bagels - QVC's Margin

kjae — Sun, 11 Jan 2015 03:13:28 GMT

When Barbara Corcoran made the statement that she would want them to sever ties with QVC-did you catch Lori's reaction?? The couple agreed that they would should they take the deal with Barbara and Lori said-"OOOOOOOOO, their not gonna like that". It sounded ominous to me. So, as I also did not see what happened after that, I am actually surprised that Lori got involved. I will have to go ask my son to rerun that part of the show. I do remember seeing that young lady on the presentation on the Q.

As for vendors absorbing returns--big companies, like department stores, always expected the manufacturer to take back unsold stock and problems-even if not warranted. I remember that is why my father preferred not to do direct business with them.. They also did not pay. The poor manufacturer had to send the goods and act as the store's bank for months. He said he had to pay for the raw materials, labor, and operating costs to make the items and could not keep a business operating under that system. That, or his family didn't need to eat and pay bills.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Porcelain — Sun, 11 Jan 2015 03:56:00 GMT

Sounds like QVC is a tough negotiator. Sort of like Walmart. Not sure I would go that route if I had a product and wanted to make a good profit. Selling on there would mainly work for items that looked deluxe but only cost pennies to produce.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Luvtoshopathome — Sun, 11 Jan 2015 04:41:05 GMT

It's funny but I was going to start this same thread after watching shark tank. It's ridiculous how much profit QVC makes. You know Lori has to get her share also but still it cost BB $17.95 and QVC pays them $19.95 and then turns around and sells them for almost $50? Talk about greed! A friend of mine was on QVC many years ago and at that time they took 60%. He said they were not easy to work with and were very demanding. He didn't stay with them very long. I think that's why a lot of vendors don't stay and are seen on other shopping channels. Those Bantam Bagels sell for $1.50 each in the store and they are very good. They have very bad reviews here so maybe they use a different manufacturer for QVC. I would never buy food from QVC, I know people who have and said they were terrible.

Re: Shark Tank - Bantam Bagels - QVC's Margin

Group 5 minus 1 — Sun, 11 Jan 2015 14:35:25 GMT

When I was a kid Daddy would get me fresh bagels from Tuckers every Tuesday and Friday. They were the best and haven't had any that measures up. Today most bagels taste like hamburger buns w/ a hole in the middle.