Understanding Your User Dashboard

Posted by Eric Taylor on Monday 08 Aug 16

Understanding and utilizing your account dashboard.

This is the first in a series of posts that will help you better understand and better utilize the information on your user account and dashboard. We are constantly making improvements to how we provide information about your account and your activity to you. We release new information and display that information in different ways and we continue to optimize this regularly. The dashboard is one of the areas on which we receive the most feedback, and we attempt to incorporate as many of the the desires of our user base into the design as we can. Here is some information on how to understand the main stats you currently see across the top of your dashboard:

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Current Inventory Value:

Your Current Inventory Value is the value of all inventory you currently own, at the price you paid for it. This figure does not include any profit you have made, nor any potential profit. It is simply the amount of inventory that you have purchased via Co-Ops that has not yet been bought back from you.

For example, assuming no prior activity, let’s say you participated in a Co-Op with $1,000, that offered a 10% profit, so you are expecting $1,100 in return. At the time this contribution is successful, your Account Value would be $1,000 (the cost of the inventory). Let’s say then that the business makes a payment for half of the Co-Op ($500) along with the corresponding profit ($50) for a total payment of $550. Then your current inventory would be $500, as you have $500 remaining in inventory.

Current Account Value:

Your current account value is the current value of all of the inventory you own in Co-Ops you have participated in, at the price you paid for it (Current Inventory Value), plus the funds you currently have in your Kickfurther account.

For example, assuming no prior activity, let’s say you fund your account with $1,500 through an ACH transfer (including your ACH Bonus!). Your account would show your account value as $1,500 and you would have $1,500 in Kickfurther funds. Let’s now suppose that you made a successful Co-Op contribution for $1,000. Your account value would then still be $1,500, however your Kickfurther funds would be $500, and your Current Inventory Value would be $1,000.

Profit Earned:

Profit Earned is the total you have earned on all Co-Op and store sales, to date. It is a lifetime statistic that measures cumulative profit since you started using the platform. Only consignment profit you earn and commission on store sales you make impact this statistic directly; capital additions, capital withdrawals, and Co-Op participation does not directly impact this statistic.

For example, let’s go back to the explanation above and assume, with no prior Kickfurther activity, that you made a successful contribution of $1,000 in a Co-Op with 10% return (so you are expecting $1,100), and that the business owner makes a payment for half of the Co-Op ($500) along with the corresponding profit ($50) for a total payment of $550. Then your lifetime profit would be $50! This would not change if you withdraw that $550, nor would it change immediately if you used those funds to participate in another Co-Op.

For a few reasons, we show incremental profit for each payback from a business, rather then when all your capital for a particular Co-Op has been paid back. This is because when you make contributions in Co-Ops on Kickfurther you are buying inventory for the business on consignment, and when the business sells that inventory and makes a "payment", they are essentially buying some of that inventory back from you, plus the agreed upon profit (the rate). Therefore, you have made a profit on the portion of inventory that was bought back, even if you have not received all your initial capital back yet.

Annualized Profit:

Annualized Profit is your annualized profit percentage. It is based on completed Co-Ops in which you have participated.

More specifically, this is the weighted average (weighted based on dollars) of the annualized profit of each completed Co-Op you have participated in. For example, assuming no other Kickfurther activity, let’s say you put $1,500 into two Co-Ops. One Co-Op you put $1,000 into that was offering 7.5% profit in an estimated 6 months (15% annualized), and another you put $500 into that was offering a 5% profit  in an estimated 12 months (5% annualized). Assuming these completed on schedule, the weighted average of your annualized profit percentage (weighted based on dollars) would be ((1000/1500)*15%+(500/1500)*5%)=11.66%.

While there are several potential ways to measure a profit statistic, we chose this methodology as its characteristics fit well for measuring the buying and selling of goods on consignment, with variable duration and varied capital participation amounts.

What happens to Profit Earned and Annualized Profit if a business does not pay back?

If a Co-Op becomes troubled, Kickfurther first attempts to work with the business to complete the Co-Op. Kickfurther’s second course of action is to take possession of and attempt to liquidate all inventory that you and the other participants of the Co-Op own. Kickfurther then passes proceeds (including profit) back to the Buyers. See our post on Canceled Co-Ops for more information. During this process, Kickfurther manually updates the fully-liquid* value of the inventory which impacts the profit and eventually the annualized profit statistic.

Specifically, if you and the other Buyers in a Co-Op do not receive the full amount you contributed back, your profit statistic would be decreased by the amount of capital you did not receive back. For example, if you had $500 in Lifetime Profit already, and then you ended up receiving only $80 from one of your $100 Co-Op contributions, your Lifetime profit would be reduced by $20. Additionally, your Annualized Profit would automatically become lower once the Co-Op liquidation was completed. For example, let's say the Co-Op and the liquidation in the example before took 1 year, your annualized profit would be -20% and that would be included in the weighted average calculation along with your other completed Co-Ops to determine your Annualized Profit.

Also, keep in mind, that if a Co-Op ever becomes troubled, you, as a Buyer of that Co-Op, can sometimes take delivery of any remaining units you own if you prefer, at no extra expense except shipping in some cases. In a case where you take physical possession of inventory, your profit and annualized profit will be calculated as if you received funds in the amount of the cost of goods you receive in physical inventory.

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We are continually updating the dashboard and user experience. If you have any further questions or suggestions, feel free to let us know by emailing contact@kickfurther.com

*fully-liquid inventory - the value, when liquidating inventory, that Kickfurther expects to receive if forced to markdown all inventory such that it sells within 90 days, less any storage, taxes, shipping, delivery, or other fulfillment fees.

Topics: Updates

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