Hi, this is Wayne again with a topic “I’m Losing Money On This”.
Is Insurance attacks right off? No, but well, it can be. I know it can be, but but what’s always attacks right off? Is our special merch item for the week? Okay, wait! What so Luke, I don’t understand – was trying to understand this before the show. Why don’t we we’re going to jump on LTT store.com we’re going to jump on LTT store.com? Okay? Not not only do I not understand it, I I don’t understand it in multiple ways. This is the tax write off shirt. Yeah.
This shirt is a tax write off. It actually contains the Full text of the tax write off rant um, which that’s sick. I like that yep, it’s not it’s, not an infinite money, glitch. Okay, guys! This is how it works. Okay, we’ve got a we’ve, got a ripped up $ 100 LT bill with um a dead Queen on it or sorry, wait. No, they.
No! They American bill. They keep the same people on their money. I know it’s an American bill. It’S Benjamin Franklin doesn’t matter.
The point is that we have the tax right off shirt. So Luke you, you had some questions about the tax right off shirt, yeah, let’s start with the uh, the like less related ones and the less important ones. Absolutely why pink and perwinkle? Well it’s a write off: okay, yeah! The corporations they’re! Writing it off! So it’s because we have extra of those colors of shirts. It’S because we we we’re going to write them off. Okay! So here’s my here’s where the root of it comes at yeah, we already sell this. Isn’T I’m not even trying to pump us up? We sell relatively cheap shirts like if you look at other Creator merch. I think our shirts are generally Superior and also cheaper. Yes, why are we selling one that’s 50 % of that, so that we can write it off? How does that? What is this actually a strategy? It’S a Roff. Are we we’re so we’re actually doing that? We’Re we’re we’re setting a really bad price and then writing off the like losses on it. I mean that’s how writeoffs work work.
It’S not a way of making money. Luke it’s right on the shirt right at the very bottom of the shirt look. Do I need to remind you why the entire rant is here, but why why did we decide to not make money? It’S not a way of making more money actively decide and okay, because that’s not how that works.
Okay, so here’s the here’s, the the thing that really grinds my gears right, you want do, tell me remember this story that we talked about about. I think it was last week why Nick got hired mhm yeah for what I I don’t. I don’t know what you’re talking about because of like business decisions that don’t make the company money right made by you, but we’re going to write it off and then Nick runs create a warehouse yeah.
This isn’t going to make money. No, but we’re going to write it off what’s going on we’re writing it off Luke. Imagine we had a single NBA that worked here. I think they just freak out. I think they just run out screaming it’s like what are you guys doing what’s wrong with you? Why do we do this stuff like? Do you have any more questions Dan? Do you have any questions um, how long until they’re going to ship? Oh uh, usually it you get a bulk discount on all the external auditing. That’S going to happen happen to you.
Uh it’ll be available until yeah. That, too, are we just asking for it uh. They should be shipped by April 12th, not going to raise any flags that we sold a shirt for less than $ 10. When, like no one, does that and then wrote it off like, are they not going to be like hey um? Actually, you have a history of selling T-shirts for 20 bucks a very long and fairly unbroken history of selling T-shirts for $ 20.
Why did you price it like this uh so that we could write it off? Oh, are you going to tell the government that yeah isn’t that bad? No, it’s completely above board. Yes, we’re going to write it off. Okay! Do you have any other questions? I think you were wondering about the colors before why how can a escape velocity? Can you help me with this pink and pink and perrywinkle uh? What you had questions about that? What’S the fastest and easiest way to achieve escape velocity escape velocity yeah on what the planet the planet? Oh, oh, I see no! No! No! No! I I’d like to address your question about the colors all right yeah. Well, it’s so that we can write them off.
Were they more expensive than like normal colors? No, no, but they’re great for writing off. I think cuz. We have too many of them Dan. I think no, but that would that would be. That would be an astute business decision and it doesn’t seem like that happens here, anymore um. So I’m going to go through our notes in the dock here on the tax write off sale, uh you’ve seen the memes, and now you can buy the memes for yourselves. The shirt is $ 10, in the words in the words of lus Sebastian, a tax write off is not a way of making more money, and neither is this sale because we are losing money on it.
The shirt, the shirt is a tax write off. Do you know how much it cost to get a shirt printed at our printer? It’S $ 10! Isn’T it it’s it? No, but it’s multiple dollars! It’S it’s multiple, there’s also shipping and handling they got to pick it every time they pick it. There dollar, I’m trying to feel much money.
We’Re going to lose on this enough to write off. Not only is the shirt only $ 10, but we have decided to fire sale, our remaining 30×30 CPU pillows and color block hoodies for just $ 14.99. Now goad hoodies are 149, go ahead.
Luke and ask me: what’s up with the pricing of the of the color block hoodie was that one $ 70 go back up to the oh, my God. Here we go so the the TechLink color block hoodie go ahead and ask me about this price. Why did we choose this price? Why? Why did we choose that price so that we could write it off they’re taking up too much warehouse space? It’S the tax write off sale, oh there’s, even more merch messages.
Now we are not going to be able to get to the mall today, but enjoy your enjoy. Your tax write off shirt, hoodie and CPU pillow the merch messages per wow, the rate at which we’re losing money is actually sort of incredible. No we’re not losing money. I’M dying.
It’S funny because, like my dashboard, Taran Taran goes on vacation for one week and this happens: Luke’s still going to get wa. Did you do this while Taran was gone? Is Taran gone? Well he’s not here? No. I think I think I just made that up. Okay, I was like he flew somewhere yesterday think yeah, but I had a call get a new job cuz his company’s going down.
I a call with him. I had lunch with him this week so like how did he how’s? He? I’M sorry, L, I’m sorry Luke uh s004 AWS says also don’t forget that retro screwdriver still gets you free shipping on your entire order, yeah that codee’s still active. Why so that we can write it off Luke! Oh my go. Are you thick how long? How long is this I’m not sure until we can write it off? Okay, okay, so in all seriousness, to explain you know why why we’re writing these off? Okay, it’s to make a point.
I wanted to demonstrate how a write-off Works. A write off is not a way of making money, so we already addressed when I buy something right and I and I write off the cost of that. I didn’t.
I didn’t make money magically. I personally actually make less money. I have an asset that the business business owns, but I actually make less money, so you can write off a purchase right. So that’s really it’s more of like a tax deduction. Okay, it’s tax deductible purchases; okay, so this is more of a of a tax write-off.
Okay, so you take something: let’s say this water bottle that you paid, let’s say $ 10 for okay, you sell it for $ 5, that is at least a loss of $ 5 and depending on how you do the math, there could actually be greater losses associated With it in the handling the storage of the item um in the yeah, I mean mostly mostly that I guess, handling and storage of the item um. So you could have a greater than you know, $ 5 loss on this on this $ 10 item that you sold for $ 5 um that money that you lost, be it $ 5 or be it. You know six or seven or whatever it whatever. It adds up to gets deducted from your net income for the year. So if, let’s say hypothetically, our entire company made $ 100 for the year.
Normally, we would pay about I’m rounding here, but we’d pay about a quarter of that in corporate income tax. Okay. But if, instead of making $ 100, we took that $ 5 that we didn’t make on that. One item we sold and we deducted that from our net income. Well, now we made only $ 95 and we’ll owe about a quarter of that in corporate income tax. We wrote it off. Why would why would you why would you go out of your way like to prove a why? Why do you have to spend so much money to prove points? This is now a personal question um, because this is not the this is not. This is not only the first time this is. This is one of many hold on a second I’m, not quite done so. So if you look at that that that write off right all we’ve saved is the taxes we would have owed on $ 5. So we’ve saved $ 2.50 on our taxes, but we lost $ 5 plus. So I’m trying to illustrate that when you lose money selling a product when you write it off, you still lose money. You lose money on the sale. You lose money on your total net income for the year.
It’S like a shock absorber. Yes, essentially because you’re not paying you’re, still getting shocked, you’re you you, you pay taxes on profit, relax, you pay taxes on profit. So if you didn’t make the money, you don’t pay income tax on it, that’s in a nutshell and it’s way more complicated and but in a nutshell, that’s how it’s fundamentally supposed to work when something is, is tax deductible or is a tax write off um? So why do I need to spend so much money in order to make points? Yes and when, when one of taran’s major is like, you know, trying to go around and and improve profitability of different parts of the company? Do actions like this negatively reflect on his performance when you need to prove a point um? Well, if it does, then he should just write it off. Okay, so the reason that we have to spend so much money when we want to prove a point is because we want to make a splash. We want people to remember the point if we lost $ 100 to prove our point about tax write offs.
If that had been a real $ 100 bill that I had destroyed, nobody would have remembered that so atast, but if we sold hypothetically 353 tax write off shirts while we were sitting here just now, that’s that’s only the ones that have gone through the merch message. Dashboard, not the ones that have sold entirely and that’s already up to 360. Now, that’s a point that people would remember forever. Now our entire audience has been educated and Luke.
Is there any reason that we do this other than so people can learn education? Yes, so we’re consider this: the investment in public education that your government won’t make. Can you get a and we’re going to write it off? Can you get a charity receipt for your tax write off? No, I can’t .