On Sunday, 11/15/20, I announced that our blue $1 chips will remain available, but will no longer be offered for $1. You can always redeem your blue $1 for $1, both now and in the future. (There is no need to turn them in if you prefer to keep them, and you an always cash them in for $1. )
Here's the link to that announcement:
https://www.pokerchipforum.com/thre...ing-blue-1s-at-face-value.65144/#post-1294021
This move was planned from the start. My original plan was to issue 5,000 x $1 blue chips for face value, then end the offering. The $1 chips for $1 was designed for people building larger sets of chips that included 100 or 200 x $1 blue, to reduce their cost and get them fired up to buy the set they wanted.
I received several requests from people who wanted 1,000 blue $1 chips for $1,000, and nothing else. The biggest request was from a non-member who wanted 3,000 x blue $1 chips for face.
The cost of making a blue $1 chip
The chips are Classic Poker Chips, inlaid H mold chips with Level 1 spots. Until recently, they cost $1.95 each to have made. Shipping cost about 5 cents per chip. We also took a loss on PayPal fees instead of passing that to the buyers, and PayPal charged fees on both the cost of the chips and shipping. That's about another 6 cents per chip. International fees were larger. My guess is that each blue $1 chip cost us around $2.06 by the time it reached a player's home table.
How we tried to make up the loss:
When a member paid one dollar for a $1 blue chip, we invested the $1 into a peer-to-peer loan business called The Lending Club. Investors bought small $25 notes representing a loan of $25 to someone, and many investors would join together to make loans of thousands of dollars, each putting in their $25 to share and minimize their risk.
This worked well for awhile. Early on, The Lending Club had notes paying 12 percent, so we were effectively earning 1 cent per month for every blue $1 chip issued. Later, notes dropped to around 5 percent.
What changed:
Now, the Lending Club is closing its peer-to-peer lending and becoming a regular bank. Other P2P groups are doing the same, and the industry is considered dead. With banks offering historically low interest on things like CDs and "high-yield" accounts, there's really no way to make any measurable interest on the cash from our chips and have it be liquid enough to access if we need to pay it out for chips that get cashed in. (None have as yet.)
At the same time, the cost of having the chips made for us is increasing, climbing father and farther above the $1 face value. We began offering a $2 chip when production cost was below $2, hoping those would catch on, too, allowing us to continue to gain revenue from live chips. When Classic's per-chip cost for Level 1 spotted H molds went above $2, it made low-denomination live chips a moot point.