Silk Road forums

Discussion => Newbie discussion => Topic started by: Porn Star on July 21, 2013, 09:02 pm

Title: Vendor fees? Top secret or what?
Post by: Porn Star on July 21, 2013, 09:02 pm
So there are practically no results on the forum about vendor fees. I assume they get deleted. I can't imagine why it would be such a big secret.
If you don't want to post a response for whatever reason, I'd be grateful if a vendor could pm me a breakdown of the listing fees if any and the percentage SR takes off of sales of various sizes. I understand that it fluctuates, but any information would be great.

Thanks a lot!
Title: Re: Vendor fees? Top secret or what?
Post by: Llama Socks on July 21, 2013, 09:20 pm
I copied this from another member on SR regarding their new fee structure.

Price in BTC   Commission
1   9.67%
2   8.80%
3   8.06%
4   7.44%
5   6.91%
6   6.46%
7   6.09%
8   5.77%
9   5.49%
10   5.27%
11   5.07%
12   4.91%
13   4.77%
14   4.65%
15   4.55%

Also I copied this from another SR vendor who came up with their own calculations:
$5 -> 10%
$25 -> 10%
$75 -> 9.5%
$125 -> 9%
$175 -> 8.5%
$225 -> 8%
$275 -> 7.5%
$375 -> 7%
$500 -> 6.25%
$750 -> 5.30%
$1000 -> 4.75%
$1500 -> 4.25%
+$2500 -> 4%

The calculations were made by (POSTcomm - PREcomm)*0.01 = %
Title: Re: Vendor fees? Top secret or what?
Post by: schuldig on July 21, 2013, 09:21 pm
The percent commission charged at this point can be found with the following formula:

6.7 x e^(-p/6) + 4

where p is the price of the listing in Bitcoins.  So, for example, a 10 btc listing has a total commission of 5.27%, or 0.5265 btc.
Title: Re: Vendor fees? Top secret or what?
Post by: Porn Star on July 21, 2013, 10:04 pm
Thank you both Very much! I appreciate it.
Title: Re: Vendor fees? Top secret or what?
Post by: ShApEsHiFtInGsHaPeS on July 21, 2013, 10:10 pm
The percent commission charged at this point can be found with the following formula:

6.7 x e^(-p/6) + 4

where p is the price of the listing in Bitcoins.  So, for example, a 10 btc listing has a total commission of 5.27%, or 0.5265 btc.

and what is e?
Title: Re: Vendor fees? Top secret or what?
Post by: schuldig on July 21, 2013, 10:20 pm
The percent commission charged at this point can be found with the following formula:

6.7 x e^(-p/6) + 4

where p is the price of the listing in Bitcoins.  So, for example, a 10 btc listing has a total commission of 5.27%, or 0.5265 btc.

and what is e?

The mathematical constant.

http://en.wikipedia.org/wiki/E_(mathematical_constant)

or 2,718281828459... if that's easier.
Title: Re: Vendor fees? Top secret or what?
Post by: BTC King on July 21, 2013, 10:30 pm
i sometimes lose over 20% in fees (including hedging) on my lowest priced listings. the fees are not set in stone unfortunately so you never know how much you're going to get
Title: Re: Vendor fees? Top secret or what?
Post by: Porn Star on July 21, 2013, 10:41 pm
Thanks BTC King. SR is pretty badass and all, but a little more transparency would be nice for people considering becoming vendors. The hedging thing seems a bit confusing. I thought that it locked in the price for vendors and put the currency risk on buyers. I don't think I fully understand it yet. It's probably easy to understand once your account is upgraded to vendor status.

Ah well. I'll be able to handle the fees and still be profitable, so vendor account, here I come!
Title: Re: Vendor fees? Top secret or what?
Post by: BTC King on July 21, 2013, 10:45 pm
Thanks BTC King. SR is pretty badass and all, but a little more transparency would be nice for people considering becoming vendors. The hedging thing seems a bit confusing. I thought that it locked in the price for vendors and put the currency risk on buyers. I don't think I fully understand it yet. It's probably easy to understand once your account is upgraded to vendor status.

Ah well. I'll be able to handle the fees and still be profitable, so vendor account, here I come!
hedging means btc are converted to usd when they go in escrow and the usd are converted back to btc when they go out of escrow. there's a fee for this but it's very unpredictable. it's better with hedging than without though
Title: Re: Vendor fees? Top secret or what?
Post by: Porn Star on July 21, 2013, 11:01 pm
Thanks again BTC King. I had read about the hedging and thought that DPR/SR were taking the exchange rate risk. What you've explained makes more sense.
Do you mind sharing roughly what price range one might expect 20% total fees on? I'll probably start with weed listings priced from $10 to $150 until I've built a rep people will trust with more weight.
Title: Re: Vendor fees? Top secret or what?
Post by: BTC King on July 21, 2013, 11:15 pm
Thanks again BTC King. I had read about the hedging and thought that DPR/SR were taking the exchange rate risk. What you've explained makes more sense.
Do you mind sharing roughly what price range one might expect 20% total fees on? I'll probably start with weed listings priced from $10 to $150 until I've built a rep people will trust with more weight.
i'm not sure what the fees are on higher priced listings as all my listings are $10 or under at the moment. just starting out! still it's worth it. try making a sale on bmr or atlantis lol. there's no customers there
Title: Re: Vendor fees? Top secret or what?
Post by: DrGreenfingers on July 22, 2013, 11:29 am
Thanks again BTC King. I had read about the hedging and thought that DPR/SR were taking the exchange rate risk. What you've explained makes more sense.
Do you mind sharing roughly what price range one might expect 20% total fees on? I'll probably start with weed listings priced from $10 to $150 until I've built a rep people will trust with more weight.
i'm not sure what the fees are on higher priced listings as all my listings are $10 or under at the moment. just starting out! still it's worth it. try making a sale on bmr or atlantis lol. there's no customers there

Set "pre-commission pricing" in account, you  then pass the fees onto the buyer rather than taken out of your pocket  ;)