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.
Looking back at some photos from last Christmas, I came across this screenshot from my phone that really made me laugh:
My husband was dropping off our parcels recently, and a woman working in our shipper's office said, "I was looking at your site, and I think I might buy some of these blankets this year as gifts; I'm mostly shopping online." Another employee chimed in, "I'm going to do all of my shopping online, too."
That evening, he went with our kids to the mall to pick something up (masked, natch), and as he surveyed the hallways — with some permanently closed stores, some shuttered from lack of employees, etc. — Wayne's thought was, "I think I need to do all my shopping at the mall!"
Recently, dignify received a review on our blankets that addressed the variety of our styles (color/pattern), and the contrast/matching choices that go into our kantha. Let's take a glimpse behind-the-scenes at the number of factors that contribute to these decisions.
How do we choose the fabric? How do we match saris to create the kantha blankets? Why are some combinations bad? Why aren’t there more grey/buttery yellow/navy blue color combos?
I know that many of you have wondered about these questions from time to time, too!