15 lines
2.7 KiB
JSON
15 lines
2.7 KiB
JSON
{
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"HubID": "2293",
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"Date": "4/13/2023",
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"HubTags": [
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"Web3",
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"External Platform Posts"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "",
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"Summary": "<p>#consumerbrands increasing #profitmargin 40% on #web3 ...its possible. Here is how I think it could play out.</p><p>This is original LinkedIn/Twitter post, but model, article and any future notes/changes will be centralized there: <a href=\"https://docs.google.com/spreadsheets/d/12jxwpvmsmjK7bFi6Z2ZfPbYFFt_zWUpGn-WZy8S_PYg/edit?usp=sharing\" target=\"_blank\">https://docs.google.com/spreadsheets/d/12jxwpvmsmjK7bFi6Z2ZfPbYFFt_zWUpGn-WZy8S_PYg/edit?usp=sharing</a></p>",
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"Notes": "<p>#consumerbrands increasing #profitmargin 40% on #web3 ...its possible. Here is how I think it could play out. </p><p>I posted here about how to get more revenue and produce less product. https://www.linkedin.com/posts/eddiesoehnel_consumerbrands-web3-nike-activity-7051208196836757505-XXsI To summarize, (1) raise prices, (2) reduce costs, (3) get secondary market revenue on used product sales, (4) and sell digital goods.<br /></p><p>In (3) and (4), it seems to me that the revenue off of these activities is highly profitable because its all digital, so while the top line revenue is small, most of it flows directly to net profit margin. <br /></p><p>Unpacking (3)<br /></p><p>If we assume: (a) durable goods brand that sells products for $100 or more; (b) secondary market royalties of 5% attached to each product; (c) used product sales on all those products that generate 5% royalty back to the brand (I know, not realistic, but we're just trying to get to maximum potential); (d) marketing costs to set all this up and operate it using web3 infrastructure (again, using some super high level assumptions on costs) = 20% increase in net profit margin. That is pretty substantial. What if we get realistic and maybe its only 5%? Would you like 5% more added to your net profit margin? <br /></p><p>Unpacking (4)</p><p>If we assume: (a) an ultra brand that is loved by its customers who stake their identities on them and what they stand for; (b) that moves to IP As Platform by democratizing its IP where consumers can be involved in co-creating, co-marketing, co-profiting, co-experiencing off of products; (c) but IP As Platform is too new to get any sense for its potential, so we will just go with the same metrics used in (3) = . same results.</p><p><br /></p><p><br /></p><p><br /></p><p>I think a lot of brands could see results like those unpacked in this model in both (3) and (4), especially in Luxury. But even a food brand where (3) is not applicable, they might still become an ultra brand and democratize IP in (4) to increase net margin nicely. </p>"
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}
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