Pharaoh's Club Paulson chips - Pre-Order Thread

[Jaquen H'gar]

Ten,

The retailer's profit should be in selling the remaining chips at $1.25 or 50 cents profit per chip. Isn't this the motivation for a retailer to become involved?

While I can see the credit card fee being passed on, I just don't get the labor charges. Doesn't that come under the nebulous term Shipping & Handling?

I would recommend accumulating the promised orders then taking bids from the various reliable retailers - Holdempokerchips, Acepokerchips, 5stardeal, Apache, Buypokerchips (yeah, an A-hole but low bid is low bid) etc. Explain it to them like this, you break even in the group buy with us then you make a killing in selling the remaining chips. This chip line will likely cripple the sale of JB Home paulson, BPC modern clays, NJ clays, Blue chip home lines, ASM's.

[BreakEven]

Nice job with everything. The combination of denoms with 3 blanks can accommodate any cash/tourney setup. Very nice! BTW, my favorite chip has to be the blue one!

The wholesaler pricing seems good and reasonably well defined.

The retailer pricing is still sketchy. I know you're working on it. The retailer certainly should profit from this sale but his cost of doing business for a large pass through order is different than routine business. Retail businesses have costs like moneys tied up in inventory and space and promotional costs to sell the inventory. These are effectively zip with a large pass-through order like this. The retailer will certainly have credit card fees and labor/material costs to process the order, but their markup on a large pass-through order should be very modest...but still profitable for them.

The question I have is how "custom" is this set going to be. A better term is probably "limited release," "limited edition," or something similar assuming that this chip set doesn't become one of the retailer's stock design offerings. With that said, what will the retailer be allowed to do with these chips after the group buy?

[TenPercenter]

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what will the retailer be allowed to do with these chips after the group buy?

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Just like the last set, It'll probably be for sale for 6-12 months after the group buy at least. I'll know more about it once I get a deal struck with someone.

Ten

[BreakEven]

Wholesalers and retailers serve different purposes. Many companies are structured to work through retailers while others (like Dell computers) are structured to sell direct. Wholesalers who rely on retailers can be sensitive to circumventing their normal distribution channels. On the flip side, retailers who have committed time and money to a wholesaler's product line can get pissed when the wholesaler sells around them to consumers. I operated an industrial supply division for a few years and when one of our manufacturers/vendors sold a large order around us to a customer in our area we simply promoted other product lines harder. Why support a vendor who won't support you was our attitude...especially when we had our money and warehouse space tied up with their products!

Anyway, it would be nice if we can get as few people in the chain as possible but Trademark may not be prepared to handle numerous little transactions associated with this order and all then ensuing post-order customer support related to mis-shipments, off-center labels, etc.

In this case, the retailer may serve an important role which we should appreciate as long as their markup is reasonable. What's reasonable?

100,000 chips at 0.1 per chip markup is $10,000 gross profit. Is this reasonable?

1 full-time person ($35/hour burdened wage rate) spends a week (40 hours) to fill 200 orders which is 25 per day or 3-4 per hour. That's $1,400 and pretty damn conservative IMO.

Lets say 80 additional hours of order support for another $2,800.

Credit card processing - approx 1.5% for phone in orders which is $1,300 assuming a 0.85 chip price. If the retailer types each order into the Internet (unlikely), then credit card processing is about 2.5% or $2,100.

Chip trays $1,000. (saw ten 100 chip acrylic trays for $10 online)

Misc support costs $500 for whatever.

Shipping and handling is usually added to each order to cover mailing and packaging.

Profit/Additional Profit - $3,000

Total Estimated Retailer Cost $10,000 plus shipping which is covered by a 0.10 per chip markup.

So I guess I would be concerned about any retailer wanting more than 0.10 per chip....including trays [img]/images/graemlins/smirk.gif[/img].

[w_gibbs]

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p.s. You know what the best thing about getting into the third page of the thread is? Not having to scroll horizontally anymore because of that huge-ass photo of jojobink's dirty orange chip.

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LOL...I agree.

[mckee27]

Yes, the $500 chip rocks, I really like them all now.

[mckee27]

me too, no problem at all using Paypal via Ten.

[Cin0s3]

Hey 10, I have been trying to keep track of this but haven't noticed whether or not you had gotten confirmation on the concentric circles yet or not. Also is the inlay going to be the size in the image or is it the 7/8" like the JB's?

[Coleman]

What, exactly, is required of the "retailer" in this equation? (I'M a retailer, for Pete's sake!)
Are we merely in need of a warehouse space with a phone, fax, credit card machine and shipping clerk? Or is the retailer going to pay for the full order up front and then resell?
Heck, I live about 25 minutes away from Trademark Poker/5 Star. If you ever have a need for physical inspection at their warehouse, please ask me for any assistance.
BTW, choosing 5 star seems kinda natural here, since it's the same company.

[Johnny5]

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Also is the inlay going to be the size in the image or is it the 7/8" like the JB's?

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FYI - The inlay size on the images posted here is 7/8" just like the JBs.

J5