This recent price runup has gotten so out of hand that all the prices on my shop are ridiculous.
So I had to lower them today.
I sell Bitcoin-themed Christmas cards and I only accept bitcoin.
Christmas cards used to be 15k sats, now 12k sats.
No inflation in the bitcoin circular economy.
https://shop.bitcoinscoresby.com/wp-content/uploads/2023/09/Grinch-Mockup-1.jpeg
If your costs were majority BTC and not fiat denominated, you probably wouldn't be lowering prices (yet).
Your costs to buy current inventory didn't change in BTC terms. Suppose you paid 1BTC to buy current inventory. Then, if the USD/BTC exchange rate doubled after your inventory purchase, you should not care. Your costs are still 1BTC and you should expect to make more than 1BTC in sales to make your effort worthwhile (profit). Because BTC is your unit of account.
If you refuse to lower prices in response to an exchange rate increase today, you will likely have much fewer sales. Since most of your customers are using USD unit of account. To them, the price has gone up even tho your costs are constant. Because you and the customer use different accounting units.
Just pointing out the flip-side of a dis-inflationary unit of account. It creates a disincentive to invest heavy in inventory, often this means forgoing the benefits of economies of scale. Makes supply chains less efficient.
As long as you are adjusting prices based on the exchange rate, your unit of account is still fiat-based. Don't fool yourself.
I see your point, I probably would have more bitcoin if I just abandoned this whole project and bought bitcoin, but I don't find that entertaining.
So, I'm going to stack as many sats as I can by selling goofy Christmas cards. Lower prices = more sales, so I'm happy.
Your business must be doing well. Your default zap has increased haha
I wish. I really haven't put any effort in to it this year.
My default zap (102) has been that way since at least June of this year, maybe January -- can't quite remember.
Ya I know. I was just pulling your leg (about the default zap).
Is/was this the passion project that you consistently carved out time for?
You're just supposed to call it a sale.
Saying what's really happening is better advertising than any sale.
Welcome to the magic of deflationary economics! From now on, prices go down forever, which makes sense because it should get easier and less expensive to produce your warez as technology, delivery, and infrastructure all progress toward a better future.
Yes, if you look historically: In 1968 an oz of Gold was $35 and barrel of oil was $3. Therefore one oz bought you ~12 barrels of oil
Today 1 oz of Gold buys you ~30 barrels of oil - and largely this is a reflection of natural increase of technological efficiencies.
Think about that for a second....in 1968 you could've invested that $35 in a stock and perhaps even had better returns by now....or you could've just done nothing and put that gold coin in your sock drawer gotten >2 more oil now.
The single worst thing you could've done is to keep that $35 USD in a sock drawer as that would now only get you 1/2 barrel of oil (a 96% collapse).
(NOTE: Yes Gold is a relic. Yes its heavily manipulated. However it functions well enough as a deflationary asset to at least make this point)
I guess you like to charge in nice round sats numbers rather than peg them to fiat?
Yeah, I don't like pegging. Sounds uncomfortable.
You don't know until you try.
So where can we buy these amazing cards?
Should have included the link, shouldn't I?
Https://shop.bitcoinscoresby.com/christmas
Hmm, I can only choose US a a billing address, is it so or site doesn't work properly on the phone?
I can only ship US. It gets really expensive to mail them internationally. If you have a US destination you want them shipped to you can use that as the billing address. It really shouldn't matter what the billing address is. What's important is where it gets shipped.
Oh, ok, that's unfortunate. I'm in EU.
If I get enough interest, I'll figure out a way to do it.
Make it two from the EU, lol
Awesome
I always assumed shops would have a price point in mind that is something like
If you pay your bills in one or another kind of fiat currency then that calculation should also be made in that same fiat currency. And whatever number comes out can be live converted into ₿ or ṩ 🤔
You should leave it the way it is as this can help switch people to using Bitcoin
I won't sell very many cards if they cost more than $10. I still only sell them for sats, so if people want to get them they have to get their hands on some btc.
Bitcoin retains value with every BTC price increment
That's what happens when value catches up to service rendering
Looks awesome mate!
Where do you sell the cards? It's a brick and mortar store or online??
Online: shop.bitcoinscoresby.com/christmas
That card is awesome. Well done.
You're ahead of the curve, and learnings are going to be vital, pretty soon more businesses are going to have to deal with this and people with experience will need to help with working out projections on cash flow, pricing and managing expenses, but its a good problem to have, i can't wait to see how when bitcoin companies pocket that additional funds from price increases, how they pass it on to customers by reducing their margins, could have so much space to offer better discounts and run better sales campaigns
If I pray it's the same gain, it's okay to lower the price. By the way, excellent business idea
Loving the title by the way
What a great idea for a business.
I make posters too.
https://bitcoinscoresby.com
Going off topic a little, this is an excellent Bitcoin-themed card business idea. Maybe it works if you implemented it in my country
Yes, will have to do the same for some stuff I plan to sell at next local Bitcoin meetup, there I always price stuff in sats.
This is how it's supposed to work!
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It should be the Bitcoin price that stays the same and the fiat price that fluctuates.
I guess it's because OP pays his suppliers with fiat. Unfortunate but in the mean time a step in the right direction.
Correct. Almost all my expenses are in fiat, so as btc goes up in relation to USD, my prices can get cheaper in btc terms. Wouldnt be the case if my costs were denominated in btc.
I just want to make sales. My costs are mostly denominated in dollars, so I'm happy to lower prices and make more sales. I'm still making the same profit per card.