sat guru
Two Pair
I agree we're post committed, but some of the points you raise are exactly why we should be having this discussion.
More importantly, you raise the really excellent point that GB organizers need to be wary of many pitfalls that can affect them adversely such as "materials ... and labor ... or settling discrepancies, damage, loss." If an organizer has detrimental financial consequences in a GB, that's NOT a good thing. Let's make a list of the things that they may not be aware off, so that organizers can factor them into the economics and have the benefit of others have made.
What about this: should we build a blank spreadsheet with line items for all of the ideas we're discussing and make it available for people to copy and download? The idea would be to create a model which incorporates line items for all of the things we think that should be there? Easy for subsequent organizers, makes transparency easier, etc. Is it worth it? Thoughts?
So although we're both post committed the reality is that we're aligned, not adverse. Apparently post commitment differs significantly from pot commitment: No one loses.
You're absolutely right. My apologies, it should be $13.00 and I've changed back. There is no different source of information which applies to these particular sales, but I changed it this morning based on something I received (LINK) and forgot to change it back to $13.00.If that's where you got the base price per plaque, you should know that the link shows $13, whereas your spreadsheets show $12.65. At 881 chips total, you've missed $308.35 in costs. Is there another source?
The total for both plaques is $300: $150 per design. I have allocated $150 to each design. Happy to allocate it as you want.If that's where you got the p5woody figure, then your spreadsheet is mistaken, showing $150 instead of $300 for him. This implies your $20 Plaque tab is short $150 in costs, and the $100 Plaque tab is short by $150.
Given my $13 per plaque error and the $300 allocation, the model comes in at approx. $1,500, so I edited my prior post to reflect that number. Happy to make other modifications to the spreadsheet as requested.You projected a $1,819.00, or 13.33%, profit on $15,473.00 in sales. Although you labelled it a "Minimum Profit," it was apparently overstated by at least $608.35, so it's only 7.8% profit - and that's before accounting for materials (minor) and labor (in my mind, major) or settling discrepancies, damage, loss (hopefully, those will be minor for him, unlike my f*ck ups.) And there may still be other fees we're not aware of. He wasn't posting any invoices, that I saw.
More importantly, you raise the really excellent point that GB organizers need to be wary of many pitfalls that can affect them adversely such as "materials ... and labor ... or settling discrepancies, damage, loss." If an organizer has detrimental financial consequences in a GB, that's NOT a good thing. Let's make a list of the things that they may not be aware off, so that organizers can factor them into the economics and have the benefit of others have made.
What about this: should we build a blank spreadsheet with line items for all of the ideas we're discussing and make it available for people to copy and download? The idea would be to create a model which incorporates line items for all of the things we think that should be there? Easy for subsequent organizers, makes transparency easier, etc. Is it worth it? Thoughts?
You say GBs for all three transactions, but the mods have already decided that none of them are. But you raise another super question which isn't on my list: should a GB organizer be compensated for his effort (if they want to be) if at all, and if so, how? (Really interested in the opinions of people who have run GBs in the past.) Personally, I LIKE the idea that a person is compensated for their efforts. I want the GB organizer to have a great experience and want to encourage them to repeat the madness. I also believe that expenses should be padded to ensure that the GB organizer isn't out of pocket. If I was running a GB, I would absolutely include each of these as line items.It's one thing to donate your time to a first Group Buy which enables you to get something you otherwise couldn't. It's another to run another two group buys for things you may not personally need... why should that time be donated, necessarily?
I don't think you are, and I do appreciate and greatly respect you for holding me accountable. Moreover, I'm not alleging anything improper. Once he declared "for profit" I stopped posting questions and comments in those threads: good luck to him. And in fact I have subsequently ordered even more plaques. I hope he makes a lot of money: seriously. I'm in sales and I really like profit. His actions have also spurred this discussion, so we should thank him for that too.To be clear - I'm not actually defending him.
Absolutely agree with this so keep me honest. (If anyone has an appetite for it, I'm happy to run a spreadsheet with multiple options if someone wants to see it.)But I know that it's all too easy to make a few wrong assumptions in a spreadsheet, and come out making some erroneously inflated claims... I can also make some only-slightly-silly assumptions and make it look like he has a loss. The margin here is fairly thin.
Again: completely agree with all of this. However, based on the GB moniker this was not my expectation. I anticipated costs to be treated pro rata, and with fixed costs divided amoungst a larger number of units the per unit price should drop. If you look at the subsequent two offerings, there were others (including you) operating under a similar assumption (LINK, LINK, LINK, and LINK). My expectation was (I believe) clearly evident in my group PM to all of the first GB participants on Aug 15. In that PM I explicitly questioned the economics, and enquired about expanding the GB, but my questions weren't answered. Lesson learned by me: it was at that time I should have pushed harder, but there was no point in doing so because the plaques had been ordered. I didn't anticipate a second GB with significantly greater orders which would spread the fixed costs over a much larger number of units. Hence my continued questions in the subsequent two threads: I was only interested in was understanding the economics.Meanwhile, he has done a ton of work and will do a ton more. And people are happily lining up to pay $18 per for the plaques. I was offered plaques at $18 per, I was one of the first to sign on to make for a group big enough to hit the minimum, I paid $18 per, and I got them. Without him running this buy for the group, I would not have a set of very, very lovely plaques.
Sorry: I don't share your guilt. This discussion is not about the sales that are going on. The discussion you and I (and everyone else on this thread) are having is exactly the road to be traveled, so that we can generate a repository of suggestions and ideas for organizers and participants in GBs. To my mind this has always been the value of PCF: I want to be part of a community that shares passion, knowledge, experience and ideas.I'd rather this thread had stayed on the subject you opened it with, but I guess it was inevitable that people would end up asking why the question... Now I'm feeling guilty about taking it further down the road.
So although we're both post committed the reality is that we're aligned, not adverse. Apparently post commitment differs significantly from pot commitment: No one loses.