Hi, this is Wayne again with a topic “Linus gets sticker shock”.
I think many people are shocked by LTT store prices because they’re unfamiliar with the higher end of the markets you compete in. Have you ever been shocked by prices in unfamiliar markets? Before, oh sure, yeah I mean I made a whole video about what the heck is going on with Cinema Camera prices and the craziest part is red. Was a disrupter yeah? Oh get your mind around that red came in and undercut the cinema Market, the cinema camera Market, they they democratized the the creation of of of high resolution like filmic resolution, Digital Cinema. We talked earlier on this show about an MSRP, 35 000 graphics card right yeah.
That was probably shocking for a bunch of people watching yeah I mean it’s um. I remember talking about this on the WAN show at some point. I think I talked about this on the land show, I remember, being called very out of touch for saying something along the lines of uh consumer computer hardware is not expensive, oh yeah, because from a business standpoint it’s not a GPU in the when when you you Got ta everything is relative right, a GPU, okay costs, nothing to an organization Like Us, in the grand scheme of things, think about how many people work your employee salary, we’re we’re up to about benefits for for like for someone to be in the building for a Pay period: okay, it’s like GPU right and then okay. Well that times uh 26 times a year like it still matters yeah like every head count, we add, is like equipping a quarter of our staff with an RTX 4090 think about that yeah, yeah, yeah right. So, consumer electronics, what I meant was for what they are.
It’S amazing how little they cost when we look at what we got for a thousand dollars back in 1995. The fact that you can the fact that you can buy a 40 70 TI for a thousand dollars is mind-blowing the technological advancements right, the I think the the like most easy to visualized version of that was when you talk about storage people. Do this all the time, so this is not original at all, but you look at like old hard drives like this is how many hard drives it would have taken in 1998 to amass a terabyte worth of data and there’s like uh one terabyte micro SD card. There you go it’s like whoa, it’s wild, yeah people are talking about this. Now it’s like uh, DS, 2600 and float plane chat, says I just bought a Cisco router for 1.2 million for my company. Is that outrageous? Not if your company is going to generate six million dollars of Revenue with it, because that’s the thing it’s a completely different calculus, it’s not how much enjoyment will I get from this router or from this add-in card? It’S how much revenue will this generate for the company if I spend this thousand dollars that I am that I’m blessed enough to have to reinvest, will I get eleven hundred dollars or fifteen hundred dollars or three thousand dollars, assuming that I make very efficient use of It so I forget how we started this question uh. What was the question? Oh yeah, the pricing of so have we ever yeah yeah, so in when it comes to to to business expenses. I don’t think a quarter goes by where I’m not blown away by the cost of something, because once you reach a certain scale, things that cost a thousand dollars become a rounding error.
Like I remember, we got a bill for some kind of stock photo service that we were using, but we didn’t have the right tier of subscription for like how much of it we were using and we didn’t realize – and they sent us like a thirty thousand dollar Bill and I was like uh uh what this happens with uh web service stuff, like all the time – oh yeah for sure, yeah, yeah, so yeah, it happens all the time, and I mean my response to people saying that LTT store stuff is really expensive, is um. Okay, well uh! You you go make it to that level of quality at that price. Our t-shirts are still 20 bucks. Go find now go find me another content, creator that does printed quality, shirts, no Fruit of the Loom, no Gildan, no crap shirts printed quality shirts.
With good printing, too 20 bucks screen printed, not direct to garment it costs money. Sorry, not sorry like we, we don’t. We don’t take ridiculous margin on stuff um. That’S just the way it is .