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Subscription Value


Best Offer/Buy Now Value

We ran our service for a week and compiled all of the emails it sent out. We calculated the value generated by each target by finding the amount it is discounted from our generated price. The total value generated by best offer and buy now targets for the week was $3,925.57. Since we tested our algorithm with only 132 tracked cards, we divided that total value by 132 and then 7 to get a total value generated per card per day of $5.32. Since our full version tracks 275 cards and our subscriptions last for 30 days, we multiplied the total value generated per card per day by 275 and then 30 to get a total monthly value of $43,893. To account for possible error in our pricing model, we divided that total monthly value by 2 to get a more realistic value/month number of $21,946. We then assumed that each customer should be able to extract at least 0.5% of the monthly generated value, resulting in the best offer and buy now feature providing $109.73 of value to each customer.

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Auction Value

We ran our service for a week and compiled all of the emails it sent out. We used the process shown below to determine the amount of value generated for every auction target in our emails. The total value generated by auction targets for the week was $2252. Because we only beta tested with 132 tracked cards, we divided $2252 by 132 and then 7 to get a total value generated per card per day of $2.44. To calculate the total monthly value, we multiplied $2.44 by 275 (the number of cards our full version tracks) and then by 30 (the length of our subscription) to arrive at a monthly value of $20,109. Assuming that each customer can extract at least 1% of the monthly generated value, the auction feature provides $201.10 of value to each customer.

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Roadmap:


FAQ:


Why didn't you keep the algorithm for your own use?

Quite simply, we do not have the capital to invest in all of the underpriced cards that the service generates. As mentionned above, the service generates about $40,000 per month but to capitalize on all of that value, much more needs to be invested. We do not have the money to buy all of those cards.

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