I would expect them to end up on eBay, because it's another PR trick used in the influencer age to make your product seem culturally important, rare and sought after. K-Pop bands do it a lot with their super-expensive luxury limited-edition vinyls and CDs. If you can't shift the whole lot (because who but the most devoted and cash-rich K Pop stan is willing to drop $150 on an undoubtedly gorgeous vinyl that nevertheless has less than 30 minutes of music in total?) then pop a few on eBay and it immediately looks like a collector's item. Tap into the ancient human phenomenon of FOMO. You'll definitely shift it then. There you go Meghan - free tip for you!
@HiRen It's all about how things look and seem, rather than what they are.
Bang on. I don't think Meghan does it deliberately - because I don't think she's that bright - but she really is the living embodiment of the deeply nihilistic and cynical philosophical construct of postmodernism, where everything is about the 'seems', everything is relative, and empirical truth does not exist.
But on the more practical level I think it's impossible to understate just how high the operating costs of As Ever must be. She's selling short runs (they ARE short runs, I would bet real money on that) of expensively packaged jam to OVERSEAS audiences (the acquaintance I mentioned above is Berlin-based).
It's a trusim of FMCG that the packaging and the distribution networks are always more expensive than the item itself, and in Meghan's case, we're talking about stuff coming from Cali to Europe. (So I guess she's not too worried about climate change any more.) Presuming she has access to a 3PL distrib warehouse say on the East Coast too, then there must also be a couple in Europe surely? The rents on that type of commercial real estate are HIGH AF because the supply-demand balance for warehouse space since Covid is so huge. I'm guessing Netflix pays for that.
There's two ways of dealing with this if you're running a business. Either you go like Boohoo and Shein and play a volume game - flog and send so much stuff that you get the warehouse space for cheap and can subsume delivery costs (but even Boohoo got into trouble during Covid from their returns policy). That then becomes a revenue game - you have to drive revenue because your profit margins are wafer thin, thinner than Harry's hairline. Meghan's definitely not doing that; I guarantee her first product run was a short one.
Or you can go like the luxury brands and jack up the sales price and shipping price. But your price points have to be REALLY high to compensate for the short run and the distrib. Meghan's not doing that either - $15 for a jar of jam is extortionate sure, but it'd have to be closer to $70 a jar to cover all the distrib costs and make a decent profit.
So I think you're right @HiRen and moreover I would go further and suggest that she's made a substantial loss on this first run, which Netflix is covering through their profit share deal (of which I don't know the details) in hopes that they will, at some point, make an actual, ya know, profit.