Yes you're right, it is situation dependent.
Ok lets say the business is a smaller private business, not some big wig corporation. It can be a little retail store, a little family doctor practice, a privately owned gym, or something like that. Basically the business is SMALLER therefore price sensitivity is more of an issue to the small business owner. Would you be more inclined to listen should someone "come off the street" and PROFESSIONALLY make you a proposal?
My situation is as follows. I am able to get protein powder at a VERY cheap cost at wholesale basically. The protein I can get is high quality isolate (I can also get concentrate and other types of protein and products as well). This company produces raw nutritional ingredients used in many health and supplement and feed products (sports drinks, pharmaceutical and supplemental health products, cooking products, baby products, etc).
Since we're on a fitness site and I'm into fitness, I thought it would be nice to dabble in the fitness industry somehow. I can get 20 kg bags of high quality isolate at substantially reduced costs. If I were to sell to the gyms (lets say my gym) and they were to sell ONE scoop at $1.50 each (one scoop yields 26g protein) they would make around $1000 off this one bag. If they were able to sell ONE scoop to 20 people every day (which my gym can b/c it has an extremely high volume and an active juice bar), they would get through that protein bag in about a month. My gym is so high-volume that they can probably sell one scoop to 20 people from 4pm to 7pm alone.
Actually what I would suggest is that they sell ONE scoop (which is a 30g scoop) for $1.75 and TWO scoops for $3.00 that way to entice people to go for two scoops as opposed to one.
I should also note that my gym sells Myoplex for $5 EACH!! And they go through Myoplex boxes very very quickly.
Any thoughts?