Kickfurther Glossary

Posted by Marco Vienna on Tuesday 14 Jun 16

Who is on Kickfurther?

Brands: Consumer Product Businesses who present the public the opportunity to purchase inventory and earn a consignment income if the purchased inventory sells.

Buyers: People who crowdfund the purchase of consignment inventory for a Kickfurther Brand and can promote the brand and sell the inventory

What is on Kickfurther?

Affiliate Stores: Buyers’ individual stores where they can sell consignment inventory and earn commission and preferential payments from such sales.

Co-Ops: Short for Consignment Opportunities. These represent consignment agreements proposed by Brands to the Buyers of the Kickfurther community. Under these agreements, Brands present certain products for purchase and resale as consignment inventory. When the consignment inventory sells, the Buyers earn income.

Kickfurther Store: Kickfurther’s company store, which offers Brands’ products for sale.

Why we do what we do:

Brands need to pay suppliers upfront to keep products in stock and also need to market their brand. Buyers want to participate in the retail market without tremendous barriers to entry. By working together, both groups get a better deal.

How everything is done:

Cost Price: The price the Brands pay to acquire the inventory and the price at which it is purchased on Kickfurther

Consignment Income: The money Buyers earn as the Product Packs they purchased sell on consignment.

Consignments: Products shipped to a Brand who pays only for what is sold and who returns what is unsold

Duration: The amount of time a Brand estimates it will require to produce and receive inventory, sell it, and provide a full payout to complete the Co-Op.

Product “Packs”: Co-Ops are made up of individual packs of the specific products the Brands want to sell. Buyers participate in Co-Ops by purchasing the number of Packs they want.

Reservation: An agreement to purchase a pack of inventory, provided the purchasing threshold is reached. Previously, “Claim”. A Reservation remains a Reservation until 100% of the Co-Op has been reserved, at that time, Kickfurther aggregates all reservation into a Purchase Order and issues that Purchase Order to the Brand or supplier. Now, all those Reservations are active Consignments.

Option Price: The Cost Price of the product + the Kickfurther Fee + the income offered to Buyers. The Option Price multiplied by the quantity of each product determines the total amount  Brands must pay to complete the Co-Op.

Revenue Share Price: This is the dollar amount Brands agree to pay for each product sale made. This number is always greater than the Option Price and this is why Kickfurther Co-Ops are always scheduled to be completed prior to all of the inventory being sold.

Percentage Sold for Completion: This ratio between the Option Price to the Revenue Share Price represents what portion of the purchased inventory that must be sold in order for the Co-Op to complete and the buyers to receive their profit.

Brand Sales: Brands must make a monthly sales report and pay the Revenue Share Price for each unit sold. These payments are divided amongst Buyers based on the number of product packs they purchased.

Payout Dates: Every Co-Op has a schedule of payout dates. On each of these dates, the Brand is obligated to report on inventory levels, and provide payment in the amount of the revenue share price for any product sold, damaged or destroyed during the period covered by the payout date. These payout dates continue on a monthly basis until the Co-Op is completed or cancelled.

Payout - The distribution of revenue share to the Buyers from a consignment sales update.

Update - Short for “Inventory Update”, the requirement that Brands have to provide a monthly accounting of current inventory levels.

Topics: Kickfurther News, Educational, Updates

Posted by Marco Vienna on Tuesday 14 Jun 16
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