Blue Banana...how sad !
Jun 24th 2009, 2:34 pm
#16
Concierge
Joined: Feb 2007
Posts: 29,625
Re: Blue Banana...how sad !
How does such a simple business venture end up in so much debt?
Surely they bought experiences off companies for AED 'x' and sold them in voucher form for AED 'x+20%' where 'x' was bought at some bulk discount.
If that's the case then they can only go under if they buy so much but don't sell......and i'd presume you'd buy as go?
Surely they bought experiences off companies for AED 'x' and sold them in voucher form for AED 'x+20%' where 'x' was bought at some bulk discount.
If that's the case then they can only go under if they buy so much but don't sell......and i'd presume you'd buy as go?
rent and overheads
Jun 24th 2009, 6:31 pm
#19
Lost in BE Cyberspace
Joined: Aug 2007
Posts: 7,646
Re: Blue Banana...how sad !
Unless he was in freezone,he'd need to rent premises to get P.O to get trade licence.Advertising,legals,packaging and staff probably buried that company.
I read summit about cost+20%.Need to be cost plus 66% or thereabouts to be viable.Do you run a Co in DXB Jeeper?
I read summit about cost+20%.Need to be cost plus 66% or thereabouts to be viable.Do you run a Co in DXB Jeeper?
Jun 24th 2009, 6:53 pm
#20
Powered by cows
Joined: Jul 2004
Location: currently Dubai, ex UK
Posts: 4,582
Re: Blue Banana...how sad !
staff costs are quite often the biggest cost... do a P&L..... and if there is a cash flow situation.... though I have no idea about BBanana....
Jun 24th 2009, 6:56 pm
#21
Lost in BE Cyberspace
Joined: Aug 2007
Posts: 7,646
Re: Blue Banana...how sad !
Jun 24th 2009, 7:05 pm
#22
BE Forum Addict
Joined: Aug 2004
Location: Dubai
Posts: 2,082
Re: Blue Banana...how sad !
Cost+66% if you like then....my point was.....unless you're buying loads of these deals before selling any you should be ok. Obviously the markup has to cover overheads and profit.
Understand the concept of overheads etc.....just don't see how this co in particular needed to have such large overheads.
No don't run a business in dubai or anywhere for that matter. Never will. I will always be a slave to someone else. I'm extremely risk averse.
Last edited by Jeeper; Jun 24th 2009 at 7:08 pm.
Jun 24th 2009, 7:17 pm
#23
Lost in BE Cyberspace
Joined: Aug 2007
Posts: 7,646
Re: Blue Banana...how sad !
The figures aren't the point I was making.
Cost+66% if you like then....my point was.....unless you're buying loads of these deals before selling any you should be ok. Obviously the markup has to cover overheads and profit.
Understand the concept of everheads etc.....just don't see how this co in particular needed to have such large overheads.
No don't run a business in dubai or anywhere for that matter. Never will. I will always be a slave to someone else. I'm extremely risk averse.
Cost+66% if you like then....my point was.....unless you're buying loads of these deals before selling any you should be ok. Obviously the markup has to cover overheads and profit.
Understand the concept of everheads etc.....just don't see how this co in particular needed to have such large overheads.
No don't run a business in dubai or anywhere for that matter. Never will. I will always be a slave to someone else. I'm extremely risk averse.
I wager against you now, that probably, the biggest overheads that company had were1. staff costs: paying for work permits and packages,2.advertising 3.legals-including liability insurance&professional indemnity insurance coupled with the go slow quick charge lawyers putting all contracts in place.
Just my thoughts.
Jun 24th 2009, 7:24 pm
#24
**** it we'll do it live
Joined: Oct 2004
Location: Dubai
Posts: 7,892
Re: Blue Banana...how sad !
agree with all of the above, however the gift days business model is well proven worldwide so I suspect either a)piss poor management or b)adverse local conditions, ie the local partner could well have screwed em in a number of ways.
either way sad to see for both the co. and people with outstanding gifts to claim.
oh and to be fair if it were me I'd be out of here faster than a fast thing on a fast day
either way sad to see for both the co. and people with outstanding gifts to claim.
oh and to be fair if it were me I'd be out of here faster than a fast thing on a fast day
Jun 24th 2009, 7:25 pm
#25
BE Forum Addict
Joined: Aug 2004
Location: Dubai
Posts: 2,082
Re: Blue Banana...how sad !
Business in UAE is enigmatic.
I wager against you now, that probably, the biggest overheads that company had were1. staff costs: paying for work permits and packages,2.advertising 3.legals-including liability insurance&professional indemnity insurance coupled with the go slow quick charge lawyers putting all contracts in place.
Just my thoughts.
I wager against you now, that probably, the biggest overheads that company had were1. staff costs: paying for work permits and packages,2.advertising 3.legals-including liability insurance&professional indemnity insurance coupled with the go slow quick charge lawyers putting all contracts in place.
Just my thoughts.
(I made that up myself!)
Jun 24th 2009, 7:33 pm
#26
BE Forum Addict
Joined: Aug 2004
Location: Dubai
Posts: 2,082
Re: Blue Banana...how sad !
agree with all of the above, however the gift days business model is well proven worldwide so I suspect either a)piss poor management or b)adverse local conditions, ie the local partner could well have screwed em in a number of ways.
either way sad to see for both the co. and people with outstanding gifts to claim.
oh and to be fair if it were me I'd be out of here faster than a fast thing on a fast day
either way sad to see for both the co. and people with outstanding gifts to claim.
oh and to be fair if it were me I'd be out of here faster than a fast thing on a fast day
Jun 24th 2009, 7:34 pm
#27
Lost in BE Cyberspace
Joined: Dec 2006
Posts: 23,434
Re: Blue Banana...how sad !
It's a feasible business if markets are on the up...And it's one of the worst hit while markets are down...It's very simple...Luxury is bad during hard times...
Jun 25th 2009, 4:51 am
#28
Concierge
Joined: Feb 2007
Posts: 29,625
Re: Blue Banana...how sad !
well this has certainly had alot of press coverage, main news item on Dubai Eye, front page in the papers.
Jun 25th 2009, 8:10 am
#30
Guest
Posts: n/a
Re: Blue Banana...how sad !
Especially when your mark up is so high for experiences that can be arranged for a much lower cost with one simple phone call.