Here's a true story...
I knew a guy once that started a company selling nutrition supplements online. He sold them for pretty much what he got them for at wholesale and never made any money on the company. His mark up was considerably lower than that of 99% of other retailers so he got the business. After 2 years he had over 10,000 customers (when you sell a quality product cheaper than anyone else, the word travels like a wild fire).
Needless to say, with 10,000 customers he was making a modest living at roughly $100,000 a year. Which isn't bad, but isnt' great for that amount of customers. Then he received the phone call he had been waiting for: General Nutrition Centers (GNC). They offered him a buy out package worth $15M. They stated that his prices were killing their retail sales because they couldn't compete with his prices. They had overhead, he had none. They HAD to buy him out.
Moral of the story: People start businesses to eventually sell them.
So, I totally understand and agree with what Lensman did with the Playboy situation and I salute him for building a company worth selling. Especially to a company as prestigious as Playboy.
GFY will change but I think it will be for the better.
I knew a guy once that started a company selling nutrition supplements online. He sold them for pretty much what he got them for at wholesale and never made any money on the company. His mark up was considerably lower than that of 99% of other retailers so he got the business. After 2 years he had over 10,000 customers (when you sell a quality product cheaper than anyone else, the word travels like a wild fire).
Needless to say, with 10,000 customers he was making a modest living at roughly $100,000 a year. Which isn't bad, but isnt' great for that amount of customers. Then he received the phone call he had been waiting for: General Nutrition Centers (GNC). They offered him a buy out package worth $15M. They stated that his prices were killing their retail sales because they couldn't compete with his prices. They had overhead, he had none. They HAD to buy him out.
Moral of the story: People start businesses to eventually sell them.
So, I totally understand and agree with what Lensman did with the Playboy situation and I salute him for building a company worth selling. Especially to a company as prestigious as Playboy.
GFY will change but I think it will be for the better.
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