Okay, I'll bite...

What's a kettlebell?

Jay, I read through the previous two posts several times trying to locate the word kettlebell. I am not that old, I should be seeing it but I am at a loss to find it. Where did you see this at?

j razz

In the sales copy on the CustomFlix page.

Looks very nice!
.

Kettleball: Cannon ball with a tea-pot handle on it. It is there on the page, several places, in fact. Interesting. Reminds me of the game of curling (sp?).

Tygrus,
"Ton of sales" is of course relative. We sold 20 in the first month and we haven't even done any marketing yet. Still finishing up switching the original "Providence" DVD over to the custom flix system before making major announcements.

The website is ours. However the landing page you get to after clicking "buy" is done through your customflix setup. They allow you to customize it with images so it'll pretty much still seem part of your website.

The Amazon cross promotion happens automatically. It hasn't been out there long enough for me to assess yet, though. Anything sold through Amazon is 20% fee on top of any other fees.

Customflix doesn't really do any marketing for you that I'm aware of.

Cost per disk is $9.95 if you sell 19 in a month. $7.95 if you sell 20-49 in a month. $6.95 for 50+ in a month. There is just a $50 setup fee per title (which is waived if you buy a bulk order for yourself of 100 at $5/per). Cool thing is, your profits automatically adjust as you reach the tiers of monthly sales. For instance, if you sell 50, the readjust so it's 50x$6.95 for your total cost that month...

The buyer pays extra for shipping.

Jeff

Yup,

A kettlebell is kinda like a dumbell. It's a round ball of iron with a handle (kinda like a suitcase handle) cast into the top. A very old fitness tool popularized for 100s of years in Russia. Just now taking hold in the states. We're right on the cusp now... I see them popping up in articles in popular magazines routinely now. Even saw one in Vogue last year (my wife's copy of course!).

Hey, if you want to know more, sign up for our free video newsletter "The Minute of Strength". I'm producing the video features for it with Vegas.

Thanks again to everyone here that's helped me get up to speed on Vegas. Couldn't have done it without you.

www.theartofstrength.net

Best,
Jeff

Jeff, do you think an outside website is needed with CustomFlix?

20 discs at 50 bucks each is pretty good for your first month.

Yeah, I would think a rudementary (even 1 page) website would be in order with simple links to the "buy" page of customflix. You could probably even use one of those online website builders.

I read somewhere that is Amazon does the fullfilment, either in conjunction with Customflix or on its own, its big commission, but if you do it yourself, then that drops to 15%. Is there any option to have CustomFlix doing fullfillment from their site while advertising on Amazon but you do your own Amazon fullfillment.

Sorry for so many questions but when a thread about someone actually selling a product comes along, I like to know as much as I can. I think the majority on the site are video consultants, seems only a handful are trying to market their own production.

I've been using CustomFlix since the summer of 2004. Just on a lark, a couple buddies and I made a DVD about homebrewing beer (well, I shot the video and made the DVD, they were simply the star masterbrewers in the video).
I set up a rudimentary site:
http://www.prairiedogpictures.com
which links to CustomFlix for purchasing the DVD. I didn't want to invest the time and money of burning and shipping them myself, and I certainly couldn't have generated the business just with my current website. I also went through the official process with Dolby Labs to get permission to use their logo.

The biggest boon was linking with Amazon's Marketplace. We have never advertised anywhere; just put in the meta search keywords in the site and let people find it on Amazon. At first sales were REAL slow (but hey, it's just hobby income...), but last summer things really started to pick up. In December and January we sold a total of 25 DVDs. Not too shabby for no advertising and such a niche subject. The net profit (which increases the more you sell per month) totals about $160 for the two months combined. The money can be deposited via direct deposit if you want.
Almost all our orders originate from Amazon now.

I can't say enough good things about CustomFlix. The customer service is excellent, though I only really needed it in the beginning for a few things. Just yesterday, they announced they're waiving the setup fee for adding your title to Amazon Marketplace ($19.95).

I highly recommend them.

I produced, duplicated, printed and shipped "How to Finance a High-Tech Start-up" (www.chanimal.com/video) myself and setup the cost of goods prior to first ship. For comparison, here are the numbers I used:

DVD -r (39.99 for 100) = $ .40 (they were actually $1.25 each at the time - prices have dropped so I used the lower amount)
Glossy Disk label (100 @ $16.99) = $ .17
Ink for Label (Canon 900 series 6 inks) = $ .25
DVD Case (Standard black Single DVD case (not CD case) (10 @ $3.99) = $ .40
Printing for case sleeve (At printer: 100 sleeves @ $80) = $ .80
DVD duplication cost (Mine were lower, since I own 5 DVD burners (on 5 PC's) and paid my two older kids $.25 each to duplicate) = $ .25. This amount would typically be $1.00 in higher quantity and about $4.00 each for 100 (we would remove the .39 DVD-r cost)
Total COG = $2.27 using my duplication

$5.62 (with DVD-R included) for low (100 unit run) at local duplicator).

It is important to note, I charge $5.83 for shipping and handling. My DVD mailing package cost $ .46, my actual 1st class shipping is $1.75 so I make $4.08 per shipment, less the $2.27 COG, so I clear $1.81 more for my shipping (after I have paid for my entire actual cost).

If I charge $39.95 for my video, I receive $41.76 less the 5% cost for my PayPal processing fee ($2.09) so I actually pay $ .28 for COG's, etc. Out of $39.95 I receive $39.67. I receive almost the entire amount.

However, I do have to cash flow the inventory and I have some capital (which is not amortized over the cost of goods).

For lots of 1,000 DVD's or more, I've seen prices of $1.00 for each "replicated" (not duplicated) DVD with a color label. I don't have prices with the cases/sleeve.

It would be about $6.50 at the duplicator is they did the labels (direct to disk (just black)). They would not do the DVD sleeves.

However, the initial cost for inventory from a cash flow basis (for at least 100 units) was:
$39.99 for 100 DVD
$16.99 for 100 Glossy Labels
$100 for full ink
$39.00 for 100 DVD cases
$80 for 100 DVD sleeves
Totals: $275.97 "start-up" cost to get to the above prices

If you duplicated these at 100 units your inventory cost would be $650. If you sold 20 a month, it would take 5 months to deplete this inventory. If you sold 1,000 or more/month (like Kent in this forum), then you're in an entirely different legue, so this model wouldn't be suitable.

In addition, part of the capital to duplicate my approach would include:

$400 inkjet printer
$150 (at the time) times at least 2 DVD Burners = $300

Plus, it took about 6 hours to round up all the supplies, find the sources, do the homework, etc. If you bill at $100/hr (I do), then this cost $600.

In contrast, CustomFlix costs:

$50 setup fee
$6.95 (50 or above) to $9.95 (1-20 / month)

In this case, I am going to consider the $50 a sunk cost (much less than the cost for my capital above). So the total amount I would receive (assuming the lowest run rate) per video is:

$39.95 SRP
$2.99 (CustomFlix postage)
$42.94 Total price
$2.15 (5% credit card transaction fee (similar to paypal))
$9.95 (cost for duplication, media, printing, handling to CustomFlix)
$30.84 is the total amount I would receive

Over 100 videos I receive the following:

$3,084 CustomFlix
$3,967 if I do it all myself

The difference is $883. By the way, we've just seen their business model per 100 DVDs (plus they get better terms because of their volume--I would assume it is lost due to their capital investment). Their business model works (any competitors want to jump in?).

If I do it all myself I have to pay $275 startup/inventory (which is returned over 5 months (20/month)). At 11% interest, it cost me $13.75 (simplified - not reducing amount/month) maximum to "finance" this amount.

I also have some capital directly related. Let's say I cover the cost for ALL of the capital ($700 (I don't pay sales tax in Texas (video/film is a tax exempt expense)).

$883.00
$ 13.75 Less
$700.00 less

$169.25 ahead, after inventory and capital (and I can continue to use the capital)

However, I still have to pay the $600 in time. Actually, assume I would have done 1/2 the work just for the analysis, so we can deduct $300.

All total, it cost $130.75 more to do it myself (all said and done). Although the value of the capital is work at least $130.75, so I would say it is an even wash.

Based on this, it appears that CustomFlix is a great way to cut initial expense and to test your run rates. You can always leave it there if you need "extra" fulfillment.

Anything over 100 (assuming you have the time and two kids to duplicate) may be worth doing it yourself. If you are doing 1,000 or more, then this model should be re-worked, since there are other replication (not duplication) and fulfillment options available.

Anything under 100, and if you actually have others things to do, then use CustomFlix (plus your DVD's will look somewhat better since they are printed to disk, not to label). Again, it is certainly a way to re-route your orders if you need extra fulfillment. I can create two "order" pages on my site and swap out in seconds by re-publishing.

Regarding Amazon, you can set it up yourself, but it is a very nice extra, along with the other e-stores they have hooked into. Plus, add extra hours of time/$ to your research and setup time.

I hope this was helpful for all the possible publishers.

Ted

P.S. A spreadsheet of this model would produce tighter results, but this should do for decision making. I have a spreadsheet model I use. E-mail if you want it.

The benefits of Custom Flix doing marketing on their site, Amazon and rental and affliiate companies and any future initiatives is worth the price alone of having them do it.

On another note, I went through their account process and being from outside the US, they want me to get an ITIN (Income Tax Id number) I dont know much about this process - does any one else and will I have to file a U.S. tax return? I have sold on EBay.com and never needed such a number.

tygrus

Heres a question, just how many videos out there, whether it be movies or videos etc... that are truly worth $39.95?

CustomFlix is for those that do not want the hassle. At the prices they charge, its not worth it. Compare your movie at $39.95 plus shipping and tax to one bought in Best Buy with well known actors and professionally produced by Holywood for $20. Is there really any serious competition there?

CustomFlix honestly should only be for those that dont want to do the extra legwork and that are doing videos that cant be found elsewhere. A niche if you will. Would I ever use CustomFlix? Maybe but with what they charge, it would be my LAST resort if I was in a pinch. HD DVD sounds interesting but I doubt sales would be any higher especially with the abscene currently until they finally launch.

Pmasters, I agree no movie is probably worth $40 bucks and yes you can do it yourself a bit cheaper, but the CustomFlix approach should just be a part of your overall sales strategy where you would take a little less margin but its something you could totally turn on auto pilot and turn your attention to to other efforts.

Ted,
That was a wonderful calculation. Agreed, I certainly have a lot of other stuff to be doing (day job, kids, etc). I would bill my time a bit higher for the comparison of hoofing it back and forth to the post office, licking stamps, duplicating DVDs, etc. Actually, I would probably hire a high school kid to do it all... so there would definitely be a cost... I CAN'T do it myself.

The other side of this is customer service. Customflix is on the hook to produce perfect DVD's. If there is a glitch, they need to take care of the defective product with the customer. If I were doing it myself, I wouldn't trust my own burner. I'd sit and watch each DVD to make sure it burned properly... not reallly practical.

Finally, if you get up to higher levels of sales (1000 or more) there is a mass duplicator affiliated directly with customflix who can print large quantities with charges similar to discmakers, etc. No setup costs, you just tell them which customflix title you want.

It should also be noted that Customflix is a wholly own subsidiary of Amazon.com.

Jeff