This is a working capital fundraiser for a new for profit business, that wants to appeal to your sense of a good deal rather than your sense of a good cause. It's an opportunity for funders to receive substantial discounts on purchases they were maybe likely to make anyway.
If you're a wine lover, and would accept any of the deals below from your local grocery store, then this may be for you.
The underlying principle is similar to Costco Membership, or Amazon Prime, just tweaked a bit to give funders more options. The discounts you earn are coupons you can use against future purchases. That leads to a longer explanation below, but the easiest way to think about it is that the campaign allows contributors to purchase discounts or coupons at cents on the dollar. A $50 contribution earns $105 worth of discounts, equivalent to 48 cents on the dollar. A $1,000 contribution earns $3,600 worth of discounts. That's the equivalent of 28 cents on the dollar. The higher the contribution, the greater the volume of discounts/coupons and the lower the price. Contributors also receive unlimited lifetime discounts of up to 15%, depending on how they choose to contribute.
The purpose of the fundraiser is:
1: to get access to working capital, and
2: to secure access to future cash flow, by allowing funders to claim their rewards as a discount on future business they conduct with BDW. This is a benefit of the fundraiser that no traditional lender can match, and the reason for the generous reward program.
BestDeals.Wine (BDW) is a soon to launch online only eCommerce wine store based in Washington DC, seeking working capital funds immediately.
All funders represent that they are over 21 years old.
BDW will focus mostly on $15-$25 wines from small to medium family owned producers, rather than the larger mass market producers found in every grocery and chain store. Our niche is known in the industry as the "Marvellous Middle" above grocery store, below geeky collectors. It is currently the fastest growing sector.
This paragraph explains the rules for regular, non-funder customers. A $75 purchase qualifies for free same day delivery in DC, otherwise a minimum purchase of $40 attracts a flat delivery fee of $10. Outside DC, below $200, there is a reduced, not free, average $2 per bottle, nationwide shipping charge. Wine is heavy. Above $200, shipping is free nationwide.
The basis of this funding campaign is for funders to donate X, and then save a minimum 2 X to 3.5 times X, depending on size of initial donation, plus a further lifetime discount on future purchases from the business, after the initial funding discounts/coupons have been redeemed . All discounts/coupons are expressed as $1. The higher the contribution the higher the number of coupons.
The number of $1 coupons attached to each funding level is as follows:
These coupons may be redeemed in one or more transactions on a sliding scale relative to the contribution level and transaction value.
A $50 contributor may redeem coupons to any value $1 or $105 as long as the redemption does not exceed 15% of the transaction value.
To redeem $105 in one transaction the pre tax value must be $700, netted down to $595.
A $100 contributor may redeem coupons up to $240 as long as the redemption does not exceed 20% of a single transaction value.
To redeem $240 in one transaction the pre tax value must be $1,200 netted down to $960.
A $250 contributor may redeem coupons up to $600 as long as the redemption does not exceed 22.5% of a single transaction value.
To redeem $600 in one transaction the pre tax value must be $2,700 netted down to $2,100.
A $500 contributor may redeem coupons up to $1,500 as long as the redemption does not exceed 25% of a single transaction value.
To redeem $1,500 in one transaction the pre tax value must be $6,000 netted down to $4,500.
A $1,000 contributor may redeem coupons up to $3,600 as long as the redemption does not exceed 30% of a single transaction value.
To redeem $3,600 in one transaction the pre tax value must be $12,000 netted down to $8, 400.
Once a funder has redeemed all their coupons, they are then entitled to an ongoing lifetime discount, also on a sliding scale, relative to the initial contribution as follows:
A funder may purchase coupons as often as they wish, and build their lifetime discount up to the capped limit of 15% per account.
Discounts/coupons can also be claimed as gift cards, and given to other recipients, who can use that money either to make a regular direct purchase, or as a contribution towards their own funding plan.
The funds are needed for local marketing via Nextdoor, Groups.io, Patch, Facebook, Google, etc. and for part time help. The marketing magnet to attract email addresses for new customers will be the free download of a 40+ page Wine Made Easy eBook, written by yours truly, that contains over 250 links to relevant high quality more authoritative reading, from sources such as The Wine Institute.
BDW already has sufficient fully paid inventory spread over 650 skus, ready to launch. The BDW Website still needs work and is not yet accepting orders. Funders will be notified when we are ready to accept orders.
For funders outside Washington DC, a little background on the local market. At $3,300 in 2016, Washington DC had by far the highest annual per capita general online spend in the US, almost double 2nd place New Jersey at $1,750. DC also has the 2nd highest annual per capita spending for wine and spirits, after Idaho, and New Hampshire respectively. It's in the middle of the pack for beer.
DC may not be the first place people associate with the term boomtown, but in a recent survey of 53 metro areas with a population of 1M+ by the Wall St. Journal DC ranked #5, and is distinguished by the fact that it is much larger than any of the four metro areas ranked above it, Salt Lake, Austin, Denver, and Indianapolis. DC also in April 2021 had the most construction cranes in the sky of any city, 45, with Seattle and L.A. in joint 2nd at 43. Since 2000 the population of DC has increased by 36%, double the national rate.
Links to support the DC economic claims above.
Lest you find the WaPo Article behind a paywall, here's the relevant excerpt, based on the Adobe Digital Economy Index Report.
WaPo Business Section
By Sarah Halzack
March 14, 2017
Take, for example, how much the District of Columbia stands out in the data set. It’s a city, and its growth and spending look much different than in any of the 50 states.
The District’s growth in per-person online spending was 38 percent during the one-year period. The next-largest growth rate, recorded in New Hampshire, was significantly lower: 20 percent. Plus consumers in the District spent a whopping $3,353 per person online. That is dramatically higher than the per-person rate in any state. (New Jersey was the highest, with $1,736 per person.)
The preferred option for any questions is via: [email protected]
Even though, for reasons best known only to the tech gods, the address above does not link, mails still come through. If in doubt, leave a message at 240-521-7914
Although the button asks for donations, because the rewards are so much greater than the contribution, this, arguably, is more like an investment.
Thanks for taking the time to read. That's it for now.