This week, I read about Uber's co-founder Garrett Camp reportedly paying $72.5 million for a mansion in the 90210, a record high for Beverly Hills real estate.
Wait, wasn't it only months ago that Uber went public with their IPO, stating that the company "may not achieve profitability"? In fact, revenues surged last year by more than 40% to $11.3 billion, but somehow Uber actually lost $1.8 billion (yes, 1.8 BILLION DOLLARS) in 2018 (reference).
Straight up: I don't understand these economics.
There is work being done, and someone is being rewarded financially, but where is the money coming from? And are the right people getting paid the right amount? And, if the service is of value to people, why are they not paying the amount for the service that is necessary for it to thrive? Or, is the money getting lost somewhere along the way? So many questions!
I don't know if I will receive a satisfactory answer to this (apparently) problematic model, but what is has done is reaffirmed my confidence in how we do things here at dignify.
At dignify, we have a product: kantha blankets. The product is good (we think, and thousands of blankets & happy customers later, it seems you agree!).
We buy the quality product from a reliable, trustworthy source, at a price that we have agreed upon. We've determined that the set price is reasonable to compare with global offerings and customer value. Then, dignify prices & sells the product directly to interested customers.
The price we (dignify) set for our kantha blankets is a number set to pay the bills, enable our ability to grow, and to turn a profit. In short: to sustain continuing business. Most businesses need to create a business model that allows for a consistent profitability, since few entrepreneurs are able to put their business on the stock market and make money from perceived value (rather than actual value).
There's nothing "old fashioned" about an internet shop where I don't see customers' faces. There is no Open/Closed sign, and what passes in & out of our office most frequently are 1s and 0s. But, the old fashioned model of have-a-thing-and-sell-it-for-a-price-and-make-money is one in which I am happy & proud to participate.
When the novel coronavirus COVID-19 was declared a pandemic, shopping habits changed dramatically and immediately.
One of the headlines that made me cringe was something like “Amazon hires 100,000 new employees”. As many of my local businesses were closing for a week (and then, indefinitely), it grieved me that Amazon — the business with already so much of the market share, so much in the bank, the richest man in the world in charge, and which would surely fire everyone as soon as they weren't needed — would grow even more.
But, I also didn’t begrudge anyone from shopping there, either! Where do you buy educational workbooks or board games and the odds & ends you need when you are suddenly housebound?!
Dignify has grown over many years and stages, but much of it was built in the margin time of my life when my husband was working full time and I was caring full-time for a 2 & 3-year old.
Isaac Newton worked on the early foundations of calculus & gravity during his isolation “annus mirabilis” (amazing year).
Do you need to start a side business or become a math whiz if you have any downtime? No!
But, binge-watching wears out after a while... and there is absolutely a middle zone of creative, constructive ways
In my recent reader survey, one reader shared this (remarkably prescient) comment:
“The world moves too quickly now and we are expected to keep the pace but in my opinion it is far from healthy and we need to realize that.”
Here I am, in my home office, typing at my computer, surrounded by kantha blankets. This is nothing new; in fact, my work situation (and my husband, Wayne’s) is, on its best & most productive days, remarkably resemblant to “social isolation” or “social distancing”. Some weeks (most weeks?), I barely leave my neighborhood.
But there's a difference...