Caterpillar Cowboy

902 Broadway 4th floor, New York NY 10010

Here's how Tumblr could make $100M per year if they tried

<p><a class="tumblr_blog" href="">caterpillarcowboy</a>:</p> <blockquote> <p class="p1">I believe e-commerce can make Tumblr over $100M a year. I’ve shared my thoughts with the Tumblr team directly, but I figured I’d share it with all of you as well. It comes in two flavors: independent stores (bottom up) and retail partnerships (top down). </p> <p class="p1">Independent stores are like Etsy, but not limited to handmade - Tumblr users can sell what they craft, draw, photograph, and compose directly to their followers. Tumblr facilitates the transaction via credit card or Paypal, taking a modest 5% transaction fee. Not only does this generate meaningful revenue, it creates a really amazing virtuous cycle for user growth: sellers promote their tumblogs offline to drive business, which drives more users registrations, which create more sellers, who then promote their shops, etc. At least, that’s what we saw at Etsy. At last estimate, Etsy did ~$3M/month in revenue, an easily attainable goal for Tumblr. The integration is non-instrusive: Tumblr users can choose to add a “Purchase” button to the bottom of their post that is tied to an item they’ve added to their tumblr shop (also viewable at <a href=""><span class="s1"></span></a>). Followers who click the button input their billing & shipping info via an overlay to purchase, then are returned right to where they were in the dashboard. Like at Etsy & Ebay, Tumblr processes the payments but otherwise leaves transaction coordination to the buyer & seller. Down the road, Tumblr could aggregate all of these items together into a Tumblr Marketplace, for people who want to exclusively browse the items for sale by all Tumblr users.</p> <p class="p1">Retail partnerships would work like this: Tumblr does custom integrations with the major retailers (Barneys, Nordstrom, Gilt) so that every time a post containing a link to a partner’s product page is detected, a “Purchase” button is embedded at the bottom of the post. Clicking the button leads the user through a purchase pipeline. Tumblr gets a 5-15% affiliate fee. I believe Tumblr can negotiate very aggressive revshare deals because of the volume, the incremental revenue, and the demographic. The reason why nobody can do this except Tumblr is because Tumblr’s users are curators, and curators are the missing component. Amazon is great at selling books but is awful at softlines (retail speak for fashion items) because there are so many items and they go out of style every 3 months. (<a href=""><span class="s1">Read my post for more detail</span></a>.) Tumblr’s community of curators is the secret ingredient that I believe can bring e-commerce’s current single digit share of the $225 Billion US fashion market into the double digits.</p> <p class="p1">Here’s the math: Tumblr claims 60M posts per day or 22B per year. If we assume 0.1% of posts fall into the e-commerce category, each post gets viewed by 200 followers, 1% of those followers buy something, and Tumblr makes a $2.40 transaction fee per sale (8% on $30 item), that’s $105 Million per year.</p> <p class="p1">Given a small team with the right skills, Tumblr could get this going in 3-6 months. The $100M question is, why aren’t they already doing this?</p> </blockquote> <p>Don’t mind me, just gonna brag a little.</p> <p>GUESS WHO CALLED IT 2.5 YEARS AGO???</p> <p>(In response to the <a href="">newly launched buy button</a>.)</p>

Distrust for credit cards

<p><a class="tumblr_blog" href="">msg</a>:</p> <blockquote> <p>Today while I was at the hardware store I paid with cash instead of the usual credit card because I thought it was a safer option.</p> <p>The distrust is definitely caused by the breaches at large retailers in the last 11 months!!:</p> <ul><li><a href="">Banks: Credit Card Breach at Staples Stores</a></li> <li><a href="">Malware Based Credit Card Breach at Kmart</a></li> <li><a href="">Dairy Queen Confirms Breach at 395 Stores</a></li> <li><a href="">Home Depot: 56M Cards Impacted, Malware Contained</a></li> <li><a href="">Jimmy John’s Confirms Breach at 216 Stores</a></li> <li><a href="">Breach at Goodwill Vendor Lasted 18 Months</a></li> <li><a href="">P.F. Chang’s Confirms Credit Card Breach</a></li> <li><a href="">The Target Breach, By the Numbers</a> <—- real interesting data points</li> </ul><p>The thought process I had in the 2 seconds at the register was: if the big boxes are being hacked how secure are the smaller shops?</p> <p>I guess the smaller guys don’t have the same volume of cards and are a less likely target (unintentional :)</p> <p>I also realize that credit card companies would reimburse any false charges like they have done in the past but what are our options besides carrying wads of cash around and constantly going to shady atm machines?</p> <p>Anyways to end on somewhat of a  lighter note: <a href="">Warren Buffett recently joked </a>that when his first wife’s credit card was stolen he didn’t worry about it too much because the thief was spending less than she was :)</p> </blockquote> <p>How much money could people save in lower CC fees if fraud and theft could be prevented by technology? I’m not a bitcoin fan as an end-user technology, but cryptocurrency concepts could work behind the scenes to solve some of this, perhaps.</p>

Gathering of Hops & Chops next Thurs, Oct 16

<p><a class="tumblr_blog" href="">hopsandchops</a>:</p> <blockquote> <p>It’s been too long — I (Dave) am in Seattle next week for a few days, so I’d love to catch up with folks.  Stop by and enjoy a beer or 3 at Auto Battery next Thursday (Oct 16, 2014).  Will likely be there in the 6-8pm timeframe, give or take an hour!</p> </blockquote> <p>Ah, bummer. I’ll be in Seattle Oct 23-26.</p>
See more photos from David Lifson, David Lifson

Customer Reviews

Emily U.
Absolutely the best.  My boyfriend and I went here for dinner one night, and it was enough calories for three days, but so worth it.  The pastrami sandwich melted in my mouth and the fries weren't bad either.  My boyfriend had the reuben with all the fixings and loved it.  The sandwiches were MASSIVE and we didn't have a bite left.  I can't wait to go back!!  Plus the history of it is fun.  The owner just did an interview about how the NY deli is a dying breed, so get it while you can.

via Katz's Delicatessen

Elite '11
I ordered my pastrami on rye and I just watched as the dude at the counter chop into a huge slab of meat.  I don't know about you, but tender, juicy meat that falls part at the bone never ceases to excite me.What I love about the pastrami is that it is absolutely perfect.  It has potent spice, it's juicy, and the meat is cut thick.  What you get is a simple sandwich with meat that just disintegrates in your mouth.They take this perfect meat and they drop it into rye bread and mustard and they serve it with a side of pickles.  If you want to dissect perfection for the sake of comparing it to other places, then these accompanying elements are where others' can gain ground.  If I were to choose my top spot for pastrami, I'd still choose Langers in Los Angeles over this place because of Langer's twice baked rye and their coleslaw.  These elements perfectly accent the bread and meat.  Katz has the perfect meat, but Langer's better assimilates the ingredients into a collective sandwich.But don't get me wrong....Katz is an amazing sandwich with arguably the best-cured pastrami anywhere on the planet.  I'd definitely go back when I visit NYC.  It's definitely worth a visit.

via Katz's Delicatessen

Steve D.
Believe the hype, I can honestly say that this was the best pastrami sandwich I've ever eaten. Smokey, tender, and packed full of flavor. The sandwich itself gets a 5-star rating (very rare from me), because it literally redefined what I now think a pastrami sandwich should taste like (the singular criteria for a 5 star rating in my books). Because the merits of this place have been so well covered by others, maybe I'll focus on why it didn't get a 5 star rating overall:1) Damn, that's one expensive sandwich.2) The pickles that they served were under-pickled and lacking real flavor, essentially amounting to slightly vinegared baby cucumbers. Is it overly picky to deduct a star for pickles? Probably. But, given that fresh pickles are an important staple of any deli, and given the ridiculously high standards that a 5-star recommendation should demand, I feel as if this is warranted.3) The fries (and other sides) are an afterthought. Total lack of seasoning and could have easily come out of a bag from the frozen food aisle. The only redeeming thing in this regard however, is that the sandwich is so filling no sides are even necessary.Overall, this place is absolutely worth checking out if you're in the city. A  NYC legend for a reason.

via Katz's Delicatessen