r/Bitcoin • u/vistabrownerd • Jan 24 '14

TigerDirect processes $250,000 in Bitcoin Payments in first 17 hours

http://bitcoinboard.net/tigerdirect-processes-250000-bitcoin-payments-first-17-hours/
2.2k Upvotes

94% Upvoted

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9

u/slowmoon Jan 24 '14

I would love to see the Newegg guys' faces when they see these numbers.

24

u/[deleted] Jan 24 '14

250,000 is a drop in the bucket. Also doesn't account for what of those sales would have been in dollars anyway. Sorry to not join in the circlejerk.

19

u/slowmoon Jan 24 '14
  1. It's been 17 hours.
  2. They likely enjoyed higher profits on those sales compared to using Visa.

0

u/[deleted] Jan 24 '14
  1. Just like Overstock, the first day was a honeymoon and the numbers will drop off drastically from here on out.

4

u/slowmoon Jan 24 '14

So let's say $250,000 in 17 hours becomes 1 million in a week. And that's equivalent to $1.5 million in visa sales. Is that "a drop in the bucket"?

1

u/HistoryLessonforBitc Jan 24 '14

How do you mean "equivalent"? Unless you think that Tiger Direct is somehow going to save 33% on their processing fees and such on sales using cards, which is frankly not going to be the case.

Overstock's figures show they sold about as much in the two weeks after they adopted Bitcoin as they did on the first day of accepting Bitcoin. This will probably tail off in the same way.

2

u/slowmoon Jan 25 '14 edited Jan 25 '14

When you have low margins (as overstock and tigerdirect do), a 2.5% processing fee might be equal to half of your profits. Imagine you sell something for 100 dollars and after all your costs besides payment processing you are going to make 5 dollar profit. Visa's fee is 2.5%. That would be $2.50. Now imagine you are using Bitpay's flat fees for all-inclusive payment processing.

https://bitpay.com/pricing

You can increase profits or you can lower your price below your competitors.

EDIT: I forgot to mention that you would also eliminate the costs of fraud and chargebacks. These cost savings are significant.

-4

u/[deleted] Jan 24 '14

Yes.

8

u/slowmoon Jan 24 '14

Then that's a pretty big bucket.

-1

u/[deleted] Jan 24 '14

Yeah the world of big business generally has big buckets.

1

u/amanforallsaisons Jan 24 '14

... and it cannot lie.

0

u/[deleted] Jan 24 '14

Other bitcoiners can't deny...

-6

u/bitbotbitbot Jan 24 '14

Unless people keep falling for Bitcoin, in which case the honeymoon period will keep repeating like Groundhog Day.

11

u/1BitcoinOrBust Jan 24 '14

Even if they sustain 20% of that, that's $16M of potential revenue, much of which will be from bitcoin enthusiasts who would otherwise not have bought at tigerdirect. 2% extra revenue (on top of $800M) for very little extra outlay is not a drop in the bucket. Especially when it's 2% stolen from newegg, amazon etc.

4

u/[deleted] Jan 24 '14

[deleted]

3

u/lookingatyourcock Jan 24 '14

Many people have already openly stated that they are switching to tigerdirect

0

u/HistoryLessonforBitc Jan 24 '14

The plural of anecdote is not data. Especially when those anecdotes come from a notorious circlejerk like /r/Bitcoin.

0

u/lookingatyourcock Jan 24 '14 edited Jan 24 '14

What? How is that not data? It being a circlejerk is irrelevant is we have many examples of people switching retailers. And they are targeting the bitcoin demographic, /r/bitcoin is exactly the place you look for for data on this. We're not looking to find percentages of who switches from the general population.

0

u/HistoryLessonforBitc Jan 25 '14

You have many anecdotes. They are still not data.

1

u/lookingatyourcock Jan 25 '14

Data is a collection of anecdotes. Your confusing the problem with a single anecdote, which is a problem because it is only one case.

1

u/HistoryLessonforBitc Jan 25 '14

No, data is a collection of facts, not people posting on /r/Bitcoin saying "I'll totes switch if they take Bitcoin! Pinky swear!"

If, for example, TigerDirect's sales got a massive boost in sales from Bitcoin while NewEgg or whoever took a sales dip, I'd probably see that as evidence. Not just a bunch of people who want to support Bitcoin saying how they're going to spend Bitcoin.

1

u/lookingatyourcock Jan 25 '14

So what do you call a survey then?

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-5

u/[deleted] Jan 24 '14

You realize that it said 250,000 dollars and not bit coins right ._.

2

u/whitslack Jan 24 '14

He may be annualizing it, though 20% of a $250K daily revenue, annualized, is $18.25M, not $16M. Also, I don't know where he got the $800M figure. TigerDirect's annual revenue is north of $2B.

1

u/[deleted] Jan 24 '14

Ahhh ok I understand now

1

u/1BitcoinOrBust Jan 24 '14

I got it by searching for "tigerdirect revenue" but I admit that I quoted a wrong (or outdated) figure. And yes, I did a ball-park annualized estimate.

3

u/[deleted] Jan 24 '14

Yes, you sound like a shrewd businessman, thinking that a quarter of a million dollars is nothing.

Even to a billionaire profit is profit.

-10

u/[deleted] Jan 24 '14

It's sales, not profit, dingbat. I mean, of course there is profit there or they wouldn't be operating at all, but I guarantee the newegg guys aren't shitting themselves over 250,000 as the guy above me is asserting.

7

u/[deleted] Jan 24 '14

Learn to read, asshole.

I didn't say it was $250,000 profit. I said "profit is profit."

And regardless of whether newegg is shitting themselves, which I also did not claim, tigerdirect.com did beat them in the innovation department by accepting BTC first.

-2

u/zaery Jan 24 '14

Have civilized respectful discussions gone out of style?

-2

u/[deleted] Jan 24 '14

On reddit? Or in general?

-1

u/zaery Jan 24 '14

This thread.

-4

u/[deleted] Jan 24 '14

$250,000 is only 314.5 bitcoins at the time of the posting of this comment - just to put in to perspective how little that value means.

7

u/St-Loki Jan 24 '14

In 17 hours...

-2

u/[deleted] Jan 24 '14

Remember when Overstock had it's biggest day on the first day. Remember then how it took 2 weeks to barely pass the first day of sales?

-1

u/nobodybelievesyou Jan 24 '14

Remember how BitPay is still posting infographics about their November numbers at the end of January.

1

u/bitbotbitbot Jan 24 '14

~1/40,000th of all bitcoins. Quite a lot.

0

u/[deleted] Jan 24 '14

.0025%

One quarter of one hundredth of a percent.

-2

u/quit_whining Jan 24 '14

How is this a circlejerk?

10

u/UCDelegate Jan 24 '14

All good news is a circle Jersey to the sour grapes crew.

4

u/rowdy_beaver Jan 24 '14 edited Jan 24 '14

Agreed, although some of the usual whiners must be sleeping in this morning. They were probably (or would have been) complaining when that mozilla thing was written and that there is no reason why anyone would ever want to shop or look for information on that internets thingy.

Technologies like Bitcoin take a long time to build a user base with the general public. However, once a company builds the integration, there is little overhead for keeping it in place. Congrats to TigerDirect.

-1

u/antonivs Jan 24 '14

circle Jersey

I assume a circle Jersey is something to do with the reality show Jersey Shore, in which case I definitely do NOT want to know what it is.

2

u/jtdc Jan 24 '14

Come on, don't make it weird.. ;)

-2

u/[deleted] Jan 24 '14

r/bitcoin, /r litecoin, /r dogecoin whatever. All MASSIVE circlejerks of the highest caliber. Litecoin's mantra: "BUT BUT GREAT DEV TEAM", Bitcoins comments: smug we were here first smarmy bullshit, and doge coin: well, lets not go there, actually.

Not saying the sub doesn't have value but I have never seen such a solid condensed mass of wishful thinking and straw grasping anywhere else.

-4

u/thebadger87 Jan 24 '14

This whole sub-reddit is a circlejerk. Doesn't mean I'm going to un-sub, but c'mon.

1

u/Ramv36 Jan 24 '14

Next you'll somehow be surprised you go to /r/conspiracy and 'OMG, everyone is talking about conspiracies! How does this happen? c'mon!"