This is something I have thought about and talk a fair bit about. Just because you sell something for Bitcoin and its premium doesn’t mean you can charge exorbitant prices.
My regular pasture-raised ghee is just under what it costs to get the same quality ghee made in USA online. My 100% grass fed is slightly higher, because I make so little of it and my input costs are also super high with that one I have to raise the prices on it.
My coffee is expensive because first of all coffee has risen a lot in the stock market, it surpassed ATH of 1977. And Trump's tariffs don't help much either 👌.
I mean, I wasn't calling anyone out in particular. The point was in 3 months the profits from ever unit sold will be up 20% or so. If your long view is shorter than that maybe reassess. If YOU feel your coffee is expensive, that might be another sign.
For me it is a good price. Since it is 100% Colombian specialty coffee.
I repeat what my clients say: that my coffee is expensive.
I mean, that's who pays for it so, you know, that's pretty solid information.
I agreed with your original post, but this response is terrible. Businesses have costs, people to pay, etc and you're saying "just wait 3 months and your have 20% profits".
If your margin is 5%, and you reduce the price by 10% your not gunna be able to pay your vendors for the next month. Also, that guaranteed 20% profit youre talking about historically has a risk of dropping 80%, so this makes it seem like you're saying that someone shouldnt really have a business unless they have enough reserves to pull through a bear market which is a little elitist. Saying that as someone who doesn't pay himself from the farm and doesnt plan to until its around 15 years in, but i recognize that is because i have privileges others dont.
I literally do this so, unless you have a Counter-factual, I'm not going to take speculation as evidence.
As for drawdown you know prices can increase too right? So in the 80% drawdown environment, you adjust prices upward to compensate. I am not talking massive reserves during drawdowns, your input costs are also in Bitcoin. Everyone keeps trying to measure value in dollars and that's why they are so confused. The ruler keeps changing every five minutes.
Margins we are talking about are actually crazy. 21k sats for an 8oz bag of coffee? It's at most 12k sats for a KILO at wholesale. 43k sats for a jar of nut butter? You think I haven't done the calculations? These without the appreciation are about 20-40% over market. Add on the BTC price it's ridiculous.
"The margins we are talking about are crazy"
Sounds like you were trying to call some individual businesses out but didnt tag them because your initial post seemed generic. My margins are razor thin even without paying myself for labor. So im not sure what you're actually talking about anymore.
You literally just countered my point with "you know price can also go up"... I raise pigs. I buy a ton of pig feed monthly. I sell the pigs once per year. If i sell the feeder pigs only for bitcoin at a 10% discount and the price cuts in half i then have significantly reduced revenue to then pay for the next ton of feed. A person who starts that business and that is what happens their first cycle is fucked and probably will either lose their home or be cutting into their saving to actually pay for their mortgage in dollars.
Inputs are not priced in btc. They are cash bc you cannot buy grain for pigs for bitcoin (at least where i am). So i come up with a price by adding up the cost in usd, adding the margin i want and then convert that to bitcoin, but charge a premium for paying in cash. Saying "oh becaause long term bitcoin *might* go up, bitcoin vendors should be discounting their good" comes across as "entrepreneurship is only for the privileged class"
Look, I am not going to do accounting for every eventuality in business. I also am not talking about specific businesses because a majority of those pricing in BTC are 30-40% over market.
There is no "might" go up, it WILL go up when priced in dollars but that is not my point. The point is if I had a business that relied on a bike messenger to never get tired that would be a bad decision right? So, sourcing your inputs in Dollars and charging in BTC is also unwise. The only option for those whose inputs are fiat denominated is to take excess profits (those above running costs) and save in Bitcoin. If you are trying to mix fiat and Bitcoin, you are gonna have a bad time, such as over-pricing your goods or having a debt basis that relies on Bitcoin acretion.
A simple analogy is money is a lubricant and you are mixing synthetic with conventional and your machinery will start to have problems due to their different levels of viscosity.
This "privileged" crap is marxist drivel. You either have the means to produce or you don't. It's not a privilege to add to the market in an efficient way.
The privilege crap has nothing to do with Marxism, thats a strawman fallacy not actually addressing the argument i made.
Your other points dont make sense. "Sourcing inputs in dollars and charging BTC is unwise" you do realized its impossible to jump start a circular economy without that right? Pretty much 0-5% of the inputs you need to run a farm are for sale in bitcoin, and that drops to 0% in many places.
So in reality, again your initial post was about those charging specific dollar prices you disagree with, but were unwilling to call them out directly and instead just generalize
