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Taxes, Daycare, New CDs, Pricing

Monday, April 11, 2005

Taxes. We didn't pay a dime last year because we didn't make anything. This year is a bit different because people finally found our site so the tax bill this April is for an entire year plus a quarter. Empty out the pockets and pay into a doomed 'personal' retirement plan. The bill is fat and unwieldy for a new business. Today we write out the checks.
We have a fantastic daycare setup. A family coop that I got into by throwing out ads craigs way. There are three other families besides us and all the children are around the same age. We got together and found probably the best nanny anyone could possibly hope for. She wants to be a midwife. You can just feel her love wrapping itself around your babies. We adore her.
We rotate between all our houses three days a week in the mornings. The cost is about half of what one would pay for regular daycare plus these four toddlers are the best of friends. Ava spins and whirls around in endless circles singing the Ukiah, Oscar, Avery and Berlin Hoppy Birdday song at the very top of her oversized lustful two year old lungs. HOPPY BIRDDAY TO UKIAH HOPPY BIRDDAY TO OSCAR HOPPY BIRDDAY TO VEEE AND BERLEE... You get the idea. We all attend each other's birthday parties and of course share every conceivable illness btwn the four families.
Kristin came in today with her thumb swollen to twice its size. She just woke up with it that way. Not too many shirts going out today. If yours is late coming in the mail just think of poor Kristin with her swollen thumb.
Went up to Seattle last week and got some amazing new fabrics coming your way. First I will try to wholesale them and see how they do before continuing on with the bedding. I just think they look absolutely fabulous but the entire wholesale/retail market makes pricing so impossible. Basically, one has to decide as a manufacturer whether or not to focus on retail or wholesale. If one chooses the retail market, one better have access to a gigantic audience. You need to be well established with either your own brick and mortar stores or have an amazon like reach over the net (millions of views.) The wholesale market is the one everyone tries to get into because this is where the volume comes in. You pay a few thousands to go to these shows where store owners cruise for new goods or you get a sales rep with a showroom in these markets to show your wares. Only problem is the pricing bites. Here is how it works without a sales rep...with a store rep add on an additional 15%:
You make your goods and say it cost you between $12 and $15 just to make it. You then double that and sell it to retailers for $24 to $30. They in turn, at a minimum, double that price and sell it in their shops. If you have an online site your prices must be at least double your wholesale costs or no retailer will buy it as they do not want to compete with your online store. So, online you have to sell your $12 to $15 goods for at least $48 to $60. Retailers actually have to charge this much simply to keep their doors open. They wield a gigantic variable overhead with rent, employees, utilities, and think of all the money spent on keeping the store looking like some place someone would want to drop $45 for a sheet. But, you need to be in these stores. So, yes, I get it but if you wonder why the prices on some sites are so much higher than others it is because they are trying to sell their goods to wholesalers. Other sites either have a gargantuan reach on the Internet, have a brick and mortar or just don't need to make any $ or have a product that isn't going to make it in a store.
UPS showed up today with my package from Aquarius records in SF. Best record shop with the most amazing newsletter (thanks Cook.) Got the newly released unrest which I haven't listened to in 10 years. I suddenly feel briter whiter newer and a bit tinny. Hmmm

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