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mk05
20
Jul 1, 2015
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As the rev basis goes up with more entries, does the % of the better phones also go up, or does Massdrop accrue residual and keep the percentages of phones as is? Seeing as this drop was initially open for 200x25 with that spread, it should mean better odds made for 4000x25.
Jul 1, 2015
s3rcan
4
Jul 1, 2015
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Well, if you sum up the percentages you can clearly see that it sums up to 100% so that means the chance of getting better headphones are still the same.
Jul 1, 2015
mk05
20
Jul 2, 2015
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...This is an exercise called scale.
As stated, if Massdrop keeps the residual, the net effect is completely lopsided - not that there's anything wrong with that. Have you done the backpocket math at all? If the cost of categories A/B/C are static at the given % and COGS e.g. $10/20/30 (highly doubt IEMs cost that), with $25 Revenue per item, you go from 200 units Gross Margin of $1,900 to 4000 units of $38,000 to Massdrop.
I was simply hinting/asking if Massdrop would tip the scale to favor higher end goods (increase %) to lessen such highly noticeable margins - but mostly to the benefit of the members. All I see so far is a $100 MSRP headphone that was added, which by all counts, is marginal.
Jul 2, 2015
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