Incorrect, they are definitely not offering it at cost. They are making a profit, even on packs they're selling for $1.60. I can show you, if you wish.
I was unaware of this fact. Please illustrate to me so I can be informed.
RE: Need More Booster Packs? Do The Smart Thing And Save 20% On Packs! (Deprecated!)
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Need More Booster Packs? Do The Smart Thing And Save 20% On Packs! (Deprecated!)
As you can see in block 27407018, SmartMonsters sends 1,281.314 STEEM (at that time worth $1000) to buy 575 packs (500 regular + 75 bonus):
A couple blocks after, in block 27407022, SmartSteem gets its Merchant Bonus of 128.131 STEEM (at that time worth $100), exactly 10% of the funds sent to purchase the packs:
That means they sent $1000, got back $100, so it cost them $900 to buy 575 packs.
Dividing the cost by the amount of packs gives: 900/575 = $1.565/pack. Selling at $1.60 gives them $0.035 per pack sale.
For smaller pack purchases, their profit margins only go up of course.
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Wow. You did a great job explaining. I like the work you did. Thanks for taking the time.
I do happen to think that's a smart business strategy of them. And I am inclined to hold to my original position still, but this is interesting information, and I'm willing to hold off judgment until I see what they actually do.
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OK. I've modified my opinion. If you read my comment on down the page, you'll see that I may actually agree with you, at least when it comes to the commission, if not with other items as well. They are basically behaving like a wholesaler, and as a general rule, wholesalers are not allowed to undercut their distributors. These types of contracts have different terms than the public. So, yes. You are right. A merchant commission should have terms and MSRP regulation, for several reasons, including artificially monopolizing the market, and artificially deflating the product value.
So this is what I came up with. Again, not an expert. Just finding out what I can. Let me know if this is what you were getting at.
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Imagine how much you could accomplish building things, instead of finding reasons why something is unfair.
And by the way - if we bought 575 packs while STEEM is at 40 cents, sell only 100 and then price spikes to 60 cents and we sell the rest of them, we've just made a huge minus. Unfair, right?
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That is something to consider...
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