Keep in mind that the costs of doing business are currently...

Keep in mind that the costs of doing business are currently being solely costed to the B2C department. Once we open the tap and the other revenue streams start flowing, the cost of business will spread out across the different departments and the margins on all products will increase.

Easy to understand example;

You purchase an empty convenience store. If you only stock one range of items (lollies?) then all of your cost of doing business will be attributed to the lollies.

Lollies cost you 20 cents to purchase.
You sell 50 bags on the first day for $1 each, so you make $50 in revenue, resulting in $40 gross profit.
You then need to pay rent, electricity and other overheads of say $400 for the day.

All of a sudden you have lost $360 on your first day of business. I mean, you're bound to lose money as 'your margin isnt high enough' right? You would need to sell 50 bags at $8 a bag to break even, but noone would even think of coming into your store!

You then decide to expand your range, and stock 99 other products.

There was a few costs incurred when you decided to add an additional 99 products, but once they are on the shelf you generate additional revenue - but now, your gross margin on the lollies has automatically increased because your cost of doing business is effectively spread out over an additional 49 products (or "3 different departments in DW8's case)

units; 100
overheads; $400
overheads per unit; $0.40

Lollies are purchased for 20c and sold for $1 which was losing us $7 per unit at the start, but now as our costs are spread out across multiple arms of the business we have increased our margin to a $0.40 profit.

I understand that this is an extremely basic example with no tangible figures or accuracy, but it gives you an overall idea of high growth business models in todays day and age. At its current stage, DW8 is looking to grow the business as quickly as possible. You will not entice an industry as stubborn and stuck in its ways (the wine industry) by milking them from the start. You will need to show them a large cash saving so they may consider trying your services, at which point they see the benefits and become a long term client.

The DW8 game is all about increasing volume. Once we increase our volume, it is extremely easy for us increase our service fees by say 5% and not lose a single client at all. The reasons we wouldnt lose a client are;

1. DW8 is a unique business model - there are no competitors
2. We will most likely be saving them a huge amount compared to their traditional methods
3. They would lose the free exposure and marketing by automatically being listed on Ebay, Vivino, as well as other upcoming partners
4. They would have to go back to managing their processes for order fulfilment in house
5. They dont want their customers to have to wait an additional 3-5 days for delivery

The list can keep on going, but unfortunately i have other matters to attend to. Im sure you get my drift anyway - margins and profitability take a backseat when aggressive growth is the main focus.