Silk Road forums
Discussion => Silk Road discussion => Topic started by: anynamewilldo on December 18, 2012, 01:56 am
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I feel as though I came across the information I am looking for at some point but now I forget exactly where.
I am looking for the information such as policy regarding current start up costs, what percentage commission SR takes, etc etc.
What part of the forum would that be located on? I'm not seeing it.
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Vendor account costs ~$500, subject to change without notice.
Fees, there's little official word on. It varies between 6-12% based on price of item and what mood DPR is in. Subject to change without notice.
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It goes lower than 6% if it's a really expensive listing.
Lim
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The fees are like taxes. It starts at 10% for the first $50 then goes down as the price of the item goes up. I think it tops out at 2-3% for things that are over 1k.
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I feel as though I came across the information I am looking for at some point but now I forget exactly where.
I am looking for the information such as policy regarding current start up costs, what percentage commission SR takes, etc etc.
What part of the forum would that be located on? I'm not seeing it.
Vendor account costs ~$500, subject to change without notice.
Fees, there's little official word on. It varies between 6-12% based on price of item and what mood DPR is in. Subject to change without notice.
??? ??? ???
The commission scale has been very clearly laid out on the forums - officially - numerous times. Here's an example from DPR's State of the Road Address:
http://dkn255hz262ypmii.onion/index.php?topic=8397.0
We also went to the Silk Road independent sellers to see what they thought an appropriate commission schedule would look like. The average response looked like this:
15% of the first $10
11% of $10 - $50
8.14% of $50 - $250
5.6% of $250 - $1000
3.7% of $1000 - $5000
We looked at past sales data and our current and future revenue needs and were able to bring these numbers down even further:
10% of the first $50
8.5% of $50 - 150
6% of $150 - 300
3% of $300 - 500
2% of $500 - 1000
1.5% for everything over $1000
In a $300 sale, for example:
$50 is charged at 10% of the first $50, so $5 fee.
$100 is charged at 8.5% of the next $50 - $100, so $8.50 fee.
$150 is charged at 6% of the final $150 - $300, so $9 fee.
Total: $300.
Total commission: $22.50
Total paid to vendor for item: $277.50
Total paid to vendor for item, if hedging order (@ 4% hedging fee): $266.40
In a $1016 sale, for example:
$50 is charged at 10% from the $0 - $50 point, so $5 fee.
$100 is charged at 8.5% from the $50 - $100 point, so $8.50 fee.
$150 is charged at 6% from the $150 - $300 point, so $9 fee.
$200 is charged at 3% from the $300 - $500 point, so $6 fee.
$500 is charged at 2% from the $500 - $1000 point, so $10 fee.
$16 is charged at 1.5% from the $1000 and up point, so $0.24 fee.
Total: $1016.
Total commission: $38.74
Total paid to vendor for item: $977.26
Total paid to vendor for item, if hedging order (@ 4% hedging fee): $938.17
You may also be interested in the post I wrote in response to a question asked by Bungee54 about pre-commission and post-commission pricing. That post explains how much you get if you choose pre-commission, how much you get if you choose post-commission, how much you get if you decide to hedge, and what the customer will actually see on the listing itself depending on the option you choose.
You can find that post here:
http://dkn255hz262ypmii.onion/index.php?topic=37765.msg429683#msg429683
Regarding 'start up costs', the only costs are your initial product, your initial packaging materials, and $500.00 to purchase vending privileges (aka a vendor account).
The 'running costs' are the commission fee charged on your sales, the hedging fee (if you wish to hedge your orders), more product, more packaging materials, other overheads (fuel etc.), and cashing out your Bitcoin safely.
After that you'll need to properly launder your money if you wish to spend it, which will also cost anywhere from 5% to 60%+, depending on the methods used, the distance created between you and the source, etc.
You will have to do your own research on money laundering and cashing out.
- grahamgreene
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"Whereof one cannot speak thereof one must be silent."
Talking out my arse again. Thanks for the clarification.
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Hey, does that mean there will be another State of the Road address in a few weeks? Excited :)
Also, a little off topic, but it has to do with vending. It's something I just noticed. If theft (identity, property) is unacceptable on SR, why are coupon forgeries allowed? That's quite clearly theft. Agorism is about voluntary trade, and these companies aren't volunteering for the discounts.
Example
http://silkroadvb5piz3r.onion/silkroad/user/b5698f6c44
http://dkn255hz262ypmii.onion/index.php?topic=60672.0
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defrauding companies is ok because they are terrible. defrauding inocent people is not ok.
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Hey, does that mean there will be another State of the Road address in a few weeks? Excited :)
Also, a little off topic, but it has to do with vending. It's something I just noticed. If theft (identity, property) is unacceptable on SR, why are coupon forgeries allowed? That's quite clearly theft. Agorism is about voluntary trade, and these companies aren't volunteering for the discounts.
Example
http://silkroadvb5piz3r.onion/silkroad/user/b5698f6c44
http://dkn255hz262ypmii.onion/index.php?topic=60672.0
Fair point. They shouldn't be allowed. I get the sense that the SR admins err on the side of less enforcement of item policies, especially in borderline cases. Some vendors advertise straight stolen goods too.
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defrauding companies is ok because they are terrible. defrauding inocent people is not ok.
Not quite because the effect is knock-on. You fraud companies, the companies make people pay more because fuck are they gunna lose their margin coz some geeks fuck them over. Think about it.
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defrauding companies is ok because they are terrible. defrauding inocent people is not ok.
Not quite because the effect is knock-on. You fraud companies, the companies make people pay more because fuck are they gunna lose their margin coz some geeks fuck them over. Think about it.
It's not actually possible for companies to pass on 100% of fraud costs to consumers. Additionally, if all fraud were to majically stop right now, companies would not lower prices to make up for their higher profits. It's already built into the system and I stand by my statement. While defrauding companies may raise costs for the average consumer. I'm still all for it. I think it's entirely different than defrauding an individual who will take 100% of the loss, and am unsure any potential savings would be passed on if fraud against corperations was somehow stopped. There would most likely be better earnings, not lower prices.
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It's not actually possible for companies to pass on 100% of fraud costs to consumers. Additionally, if all fraud were to majically stop right now, companies would not lower prices to make up for their higher profits. It's already built into the system and I stand by my statement. While defrauding companies may raise costs for the average consumer. I'm still all for it. I think it's entirely different than defrauding an individual who will take 100% of the loss, and am unsure any potential savings would be passed on if fraud against corperations was somehow stopped. There would most likely be better earnings, not lower prices.
Well then. After reading this ^ I decided to look into coupon fraud and apparently it amounts to chump change: $500 million dollars per year in the U.S and that equates to about $1.58 per person.
Add to that, retailers are sometimes involved in coupon fraud themselves so I stand corrected and say sorry. My previous comments were based on commonsense but proved to be inaccurate and incorrect. Coupon away, I suppose.