Helping brands liquidate their excess inventory. Featured in NY Times, Entrepreneur, Forbes 30 under 30 for Ecom
Casper is filling to go public at over a billion valuation. I love when these “unicorns” or “billion” dollar companies decided to go public because you get access to their financials. To simplify these numbers- They sell a mattress for $1,000 That mattress cost them $500 to make Now they have $500 of profit left 20% get returned, so subtract another $100 Now they have $400 of profit left They spend $290 on advertising to get that one order Now they have $110 of profit left They spend $270 per mattress sold on employees costs/admin/office/etc. Now they are at negative $160. Every mattress they sell, they lost $160. In 2019, they lost $65M dollars. Can someone please explain to be how this company is worth a billion dollars??? What am I not understanding? #casper #dtc #ecom
any product a techy feel founders spewing sentence fragments about innovating disruption^3 = a Billion Tried and true business model brah...get with it:)
These numbers don't work. And it's a product people buy once every 5-10 years at best. So terrible lifetime value. You can't lose money on the first order unless you have a strong LTV -- which they don't have. They have their work cut out for them.
Advertising needs to be reduced dramatically, and a small profit is possible.
I love this analysis. Had to hit follow thanks for this. There are many companies getting valued at billions using the same method.
You also have to consider, when companies are evaluated, it is also based on future projections of revenue as well. They also may have real estate holdings that causes their value to be higher than what you see on a P&L sheet. A lot more that goes into the equation than income and expenses
at least they are consistent :) 😂🤣🤦♂️
Evan A. Huggins
Charge Hand at Advanced Saw inc.
4yLol