By Larry Chiang
Every nickel in (revenue)
Every nickel out (costs)
#ENIENO
Be CRO first and help an existing entity
This is how things might turn out
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Leena K. Rao (@LeenaRao) |
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Also, worth noting that Beepi originally wanted to raise $300M in funding in 2015, and had to scale that back to $70M, citing the markets.
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Keith Rabois (@rabois) |
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@LeenaRao might also want to check marginal economics.
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Ale Resnik (@AleResnik) |
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@rabois Economics of the used car market: Dealers take 45% average. For Beepi’s segment dealers take avg 15%. Beepi takes between 6-11%.
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Ale Resnik (@AleResnik) |
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@rabois for our average transaction size, that’s ~$2500 in net revenue. Far from marginal. Happy to discuss one day.
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Keith Rabois (@rabois) |
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@AleResnik contribution margin is the key which is profit minus customer acq costs
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Ale Resnik (@AleResnik) |
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@rabois Beepi is + at 5%.
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Keith Rabois (@rabois) |
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@AleResnik 5% including the costs of acquiring the seller and the buyer?
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Ale Resnik (@AleResnik) |
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@rabois yes all in. Depending on volume and maturity of the market, can go up to 7% as fixed cost get carried.
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Ale Resnik (@AleResnik) |
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@rabois and 6-11% is the vehicle take rate. Beepi offers financing, extended peace of mind and soon, insurance.
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Keith Rabois (@rabois) |
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@AleResnik right so you take 6-11% and keep 5-6% absolute percentage points?
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Ale Resnik (@AleResnik) |
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@rabois happy to host you at Beepi to expand.
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Keith Rabois (@rabois) |
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@AleResnik I will bring my check book 🙂
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Ale Resnik (@AleResnik) |
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@rabois *even* in this environment? 🙂
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Jason Del Rey (@DelRey) |
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@rabois @AleResnik i took it as 5% of net rev is the contribution margin or maybe we are saying the same thing
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