Author Topic: PSA: Don't swipe recklessly for others  (Read 319107 times)

Offline Yehuda25

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Re: PSA: Don't swipe recklessly for others
« Reply #1650 on: January 24, 2019, 08:45:48 AM »
Works for all browser's, the basic version is free. But for grammar, sentence structure etc it's well worth the $60 I paid when it was on sale.

I'm on my phone now and don't have it here, but I'll run this through later and post the fixed version. You'll notice the changes!
Wrong thread, no need to hijack it for this nonsense.
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Offline Yehuda25

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Re: PSA: Don't swipe recklessly for others
« Reply #1651 on: January 24, 2019, 08:46:15 AM »
So you have an agenda here....

In actuality alot of people from G**Damn Lakewood, Monsey, and BP have done very well in the E-commerce world and continue to do so
Yup.

Though I definitely don't fully understand how people are borrowing money at the aforementioned rates of 15% and making monsey. After that and overhead doesn't really make sense. 
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline churnbabychurn

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Re: PSA: Don't swipe recklessly for others
« Reply #1652 on: January 24, 2019, 03:05:07 PM »
Yup.

Though I definitely don't fully understand how people are borrowing money at the aforementioned rates of 15% and making monsey. After that and overhead doesn't really make sense.
Gross margins on PL needs to be at least 100% usually 150+

Offline Yehuda25

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Re: PSA: Don't swipe recklessly for others
« Reply #1653 on: January 24, 2019, 04:22:06 PM »
Gross margins on PL needs to be at least 100% usually 150+
And is that doable for these buying groups?
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline LoLo

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Re: PSA: Don't swipe recklessly for others
« Reply #1654 on: January 24, 2019, 04:26:13 PM »
What do buying groups have to do with PL?

Offline Yehuda25

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Re: PSA: Don't swipe recklessly for others
« Reply #1655 on: January 24, 2019, 04:41:46 PM »
What do buying groups have to do with PL?
thats what someone was saying that borrow @15% I believe
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline Yehuda25

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Re: PSA: Don't swipe recklessly for others
« Reply #1656 on: January 24, 2019, 04:42:21 PM »
Good for you. Maybe I'm naïve, but I've seen enough.

Even with 5% margins, and I'm referring to NI margins, (Chareidim just don't seem to get the difference between Gross Margin and Net Income), and 25% Inventory stocking, and an investor for 10%, you're -19.5% cash flow before you open shop.

But people live in LaLa land.
here
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline chevron

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Re: PSA: Don't swipe recklessly for others
« Reply #1657 on: January 24, 2019, 04:44:48 PM »
And is that doable for these buying groups?

A buying group that flips doesn't need high margins, no fees, returns etc. But 15% a year means nothing

If they buy an item for $200 and flip it for 220 a day later, it's irrelevant. If they do this over and over thats real money

Offline churnbabychurn

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Re: PSA: Don't swipe recklessly for others
« Reply #1658 on: January 24, 2019, 07:20:38 PM »
And is that doable for these buying groups?
I don't have a good understanding of their business model. I assume their marhins are enough. where do they unload the goods?
AFAIK there is no other way to make money on non PL...

Offline talmud chacham

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Re: PSA: Don't swipe recklessly for others
« Reply #1659 on: January 25, 2019, 01:25:54 AM »
Aren't there potential ribbis issues with that too?

ETA: That was weird, don't know why it didn't warn me that someone posted while I was typing.
as far as i know there is no shaleh at all check @ rav

Offline YesThatsMe

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Re: PSA: Don't swipe recklessly for others
« Reply #1660 on: January 25, 2019, 08:14:57 AM »
here

They weren’t a buying group. They actually had very competent buyers, and the underlying fundamentals of their initial products was very promising. HNWI’s (Lakewood standards) were the first round of investors, and they did very competent due diligence. However, the market saturation point for that set of products was pretty narrow, הן מצד the suppliers, and הן מצד, the actual demand. Also, it was very labor intensive to turn around, and the “warehouse” was run pretty inefficiently, which increased overhead (the attitude was we’ll hire until we get the guy who can do it. Now imagine the HR mess).

So they turned to other products. Now the washing machine started spinning water, as most of them couldn’t return over their initial purchase price (I guess that’s buying group style) but the high overhead shot up even more!

Then they bought retail stores in a line they had decent experience with, sunk serious money into it and opened a t****ing company to boot, which was a cause for internal politics, and all went downhill.

In the meantime, the returns on the initial products disappeared to competitors (very common in Amazon, a 2 year cycle for a hot product is considered an eternity). So now nothing was making money, and suddenly the fixed costs of keeping the shop open made them desperate.

At no point did they intend to lose a dime. They had a innocent vision of becoming the next Klein-Pikarski, and understood that they need to take risks. But unfortunately, the risks weren’t calculated and the רבשע wanted otherwise. There were Heter Iskas for every dime. They were non PL.
« Last Edit: January 25, 2019, 08:39:48 AM by YesThatsMe »

Offline churnbabychurn

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Re: PSA: Don't swipe recklessly for others
« Reply #1661 on: January 25, 2019, 09:04:00 AM »
HNWI?

Offline chbochur

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Re: PSA: Don't swipe recklessly for others
« Reply #1662 on: January 25, 2019, 09:08:43 AM »
They weren’t a buying group. They actually had very competent buyers, and the underlying fundamentals of their initial products was very promising. HNWI’s (Lakewood standards) were the first round of investors, and they did very competent due diligence. However, the market saturation point for that set of products was pretty narrow, הן מצד the suppliers, and הן מצד, the actual demand. Also, it was very labor intensive to turn around, and the “warehouse” was run pretty inefficiently, which increased overhead (the attitude was we’ll hire until we get the guy who can do it. Now imagine the HR mess).

So they turned to other products. Now the washing machine started spinning water, as most of them couldn’t return over their initial purchase price (I guess that’s buying group style) but the high overhead shot up even more!

Then they bought retail stores in a line they had decent experience with, sunk serious money into it and opened a t****ing company to boot, which was a cause for internal politics, and all went downhill.

In the meantime, the returns on the initial products disappeared to competitors (very common in Amazon, a 2 year cycle for a hot product is considered an eternity). So now nothing was making money, and suddenly the fixed costs of keeping the shop open made them desperate.

At no point did they intend to lose a dime. They had a innocent vision of becoming the next Klein-Pikarski, and understood that they need to take risks. But unfortunately, the risks weren’t calculated and the רבשע wanted otherwise. There were Heter Iskas for every dime. They were non PL.
Not sure where you're getting your details from but you're missing a key point here as to where all the money was drained to

Offline cmey

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Re: PSA: Don't swipe recklessly for others
« Reply #1663 on: January 25, 2019, 09:22:49 AM »
HNWI?

High Net Worth Individuals.

I’m guessing those were made whole and the last guys on the bandwagon are now holding the bag.

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #1664 on: January 25, 2019, 09:25:53 AM »
Not sure where you're getting your details from but you're missing a key point here as to where all the money was drained to

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