Author Topic: Inventory Crowdfunding On Kickfurther  (Read 12675 times)

rawraw

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Re: Inventory Crowdfunding On Kickfurther
« Reply #15 on: November 28, 2015, 11:01:50 PM »
Thanks for the replies.  If you aren't versed in what happened in Prosper 1.0 (I mention this because IIIRC you said you are new to P2P somewhere), I'd do some reading since it's seeming semi-similar approach.  Prosper eventually changed after a lot of headaches and a class action lawsuit.  Your structure is much more complex than consumer credit, which generally isn't conducive to the market (esp retail) getting it right.  I'm fairly versed in lending (much more than a typical investor), and this is a lot to think about for me to get a grasp on.  But I am rather slow :)  I'll go look around the website

erikfurther

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Re: Inventory Crowdfunding On Kickfurther
« Reply #16 on: November 28, 2015, 11:02:14 PM »
@BobEubanks

Quote
Do people really pay $19 for shaving cream? Especially when they can get it direct from the company for $15?b
I think modern consumers will pay extra for brands they consider to confer a special, organic, premium, or craft like experience. Many people don't want the walmart or "store" brand. This shaving product I've been trying to land and use regularly charges a similar amount - http://www.getjackblack.com/Products/Beard-Lube-Conditioning-Shave-with-Jojoba-and-Eucalyptus__1006O.aspx

Your point about the MSRP not matching our store is well taken seems they have lowered for Black Friday. I'm sure you can agree that many people must be willing to make the spend since the following has been verified:
Sales History and Distribution
  • Preparing to launch in over 3000 stores with CVS in 2016
    HIM-istry has sold more than $500,000.00 in products for 2015
  • HIM-isty Naturals is sold nationwide in over 500+ locations (Bed, Bath & Beyond, Target, Barber Shops, Amazon )

Can you really overvalue a perfect shave?

Best,
Erik

bobeubanks

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Re: Inventory Crowdfunding On Kickfurther
« Reply #17 on: November 28, 2015, 11:22:41 PM »
I think modern consumers will pay extra for brands they consider to confer a special, organic, premium, or craft like experience. Many people don't want the walmart or "store" brand.

No doubt people will pay too much for products for silly reasons. I'm not sure what is special, organic, premium, or craft like about:

Water (Aqua) Cetearyl Alcohol Glycerin Behentrimonium Methosulfate Oat (Avena Sativa) Kernel Extract Aloe Barbadensis Leaf Juice Hydrolyzed Barley Protein Macadamia Teniflia Nut Oil Vitis Vinifera (Grapeseed) Oil Tea Extract Ascorbic Acid Cyclopentasiloxane Cyclohexasiloxane Dimethicone Cyclopentasiloxane Dimethiconol Hydroxypropyl Guar Hydroxypropyltrimonium Disodium EDTA Propendiol Phenoxyethanol Ethylhexylglycerin Fragrance

Quote
Can you really overvalue a perfect shave?

Apparently you can. :)

nonattender

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Re: Inventory Crowdfunding On Kickfurther
« Reply #18 on: November 29, 2015, 04:23:02 AM »
Let me save you some time, Erik.  The users here want to ach xfer in some money on X date and ach xfer out some more money on y date.  They do not give a rat's ass about the brand, the story, the product, the business owner, your platform (except to the extent that you will be acting as their fiduciary agent for their funds).  The demographic here is an investor demographic, not a multi-level marketing userbase.  Most of us are too old and too lazy to bend over to pick up a nickel, unless we think we can find a way to scale it (while hiring someone else to do the bending over part).  The exact moment that I tuned out and stopped navigating your website was when I saw that to "invest" I had to become a social media sales rep for whatever hippy-dippy crap (which I'm sure sells, but I'm sure as hell not paying for the  'privilege' to sell) was being financed.  "You must twit, tweet, facebook, email, blah blah, at least six or seven friends regarding the junk you financed".   I'm para-phrasing, but, you get the point.  It's not the first time I've seen that idea;  Prosper played around with investors "sharing" the news that they had just invested in X loan - btw, John Donovan should have known that and warned you that it sucked.

That said, I think the model is interesting and I know tons of money is made off of factoring/MCA.  I just think you guys have to iterate the model.  I'm still not sure what the hell your differentiator is supposed to be.  Mostly, we get pitched "very special social algorithm" underwriting models as differentiators, these days (before passing).  In your case, the differentiator is...?  This is why Fred93's asking about what regulatory advantage or provision you're operating under and wanting to get down to the moving parts of the model...

Anyway.   That's all you get for free.  Good luck.
A little nonsense now and then is relished by the wisest men.

mi_sat

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Re: Inventory Crowdfunding On Kickfurther
« Reply #19 on: November 29, 2015, 07:13:53 AM »
I've been reading this site for a little while now, but felt compelled to register so that I could leave a message about this so-called opportunity.

This seems to me like the quintessential developer solution (they recently pivoted their business model) to a business problem that the developer has little to no understanding of.  I'm speaking both of inventory financing and investing practices.

I suspect that these developers are good at developing.  But, as a former asset-backed lender and a current active investor, I wouldn't touch this "opportunity" if it were the last one on earth.  The data is non-existent (not just because the investment vehicle is new, but because the data isn't available as so appropriately noted by a poster earlier).  The incentives appear misaligned (again, as noted earlier).  It just feels like a gamble rather than an investment at this stage.

And before people say I'm being too risk-averse, I'm not.  I want to be compensated appropriately for the risk that I'm taking.  But in this case, I can't even dimension the risk or returns given lack of data.

I think those posting before me in this threat did a fantastic job of challenging the investment and business rationale, and for that I'm glad I took the time to read through everything. 

I am hopeful that more investing opportunities come along.  That said, those opportunities need to be fully-baked for them to compel me to invest.  What we have here are a few raw ingredients. 

reilein

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Re: Inventory Crowdfunding On Kickfurther
« Reply #20 on: August 25, 2019, 04:29:10 AM »
When you click on the Brand, you’re then taken to a screen that shows more information on the company. You can see the percentage sold for completion, which is the amount of inventory that needs to be sold for buyers to earn back their principal and pay out (which is 67% for this particular company.) You can also look at the company overview and growth, past Kickfurther Co-Ops, Kickfurther score and reviews.