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<blockquote data-quote="Cedric" data-source="post: 863758" data-attributes="member: 2044"><p>Ahh...now in the event she is going to be the retailer for her coffee as well. That changes matters somewhat. </p><p></p><p>First of all, the Lords of Waterdeep are going to take a large share of her business through taxes. They are going to tax each of her incoming shipments, and tax her Coffee House. So she's going to get double ended on taxation. </p><p></p><p>Provided that competition is slow to arrive though, and even when they do she'll already have an established reputation, her business should be really good. </p><p></p><p>Assuming that she sells 5 tons of her coffee herself, 500 pounds of special reserve and 25 pounds of special select, this will reduce the income from her normal sales by a gross factor of 13,750gp. </p><p></p><p>However, she can then see a return on this investment which will be far greater then her normal sales as she is cutting out the middle men. So this 13,750 becomes 41,250gp. Reduce this by 25% because of taxation, and further reduce this for operating expernses and she should see a raw net of about 15,500gp per year, net. </p><p></p><p>In the first 2-3 years though, she'll need to pay at least half of this amount out to Hotel and Mercantile Guilds to account for the amount of business she is stealing from them with her unorthodox means. At this time the idea of direct to market will be met with great reluctance. </p><p></p><p>She might be able to recoup most of this expense if she can keep the Plantation and the Coffee House separate, but that will always hang over her head as a secret waiting to be discovered. And if it is discovered as a secret, she can count on great resistance from the City Guilds and far reaching repercussions. </p><p></p><p>Cedric</p></blockquote><p></p>
[QUOTE="Cedric, post: 863758, member: 2044"] Ahh...now in the event she is going to be the retailer for her coffee as well. That changes matters somewhat. First of all, the Lords of Waterdeep are going to take a large share of her business through taxes. They are going to tax each of her incoming shipments, and tax her Coffee House. So she's going to get double ended on taxation. Provided that competition is slow to arrive though, and even when they do she'll already have an established reputation, her business should be really good. Assuming that she sells 5 tons of her coffee herself, 500 pounds of special reserve and 25 pounds of special select, this will reduce the income from her normal sales by a gross factor of 13,750gp. However, she can then see a return on this investment which will be far greater then her normal sales as she is cutting out the middle men. So this 13,750 becomes 41,250gp. Reduce this by 25% because of taxation, and further reduce this for operating expernses and she should see a raw net of about 15,500gp per year, net. In the first 2-3 years though, she'll need to pay at least half of this amount out to Hotel and Mercantile Guilds to account for the amount of business she is stealing from them with her unorthodox means. At this time the idea of direct to market will be met with great reluctance. She might be able to recoup most of this expense if she can keep the Plantation and the Coffee House separate, but that will always hang over her head as a secret waiting to be discovered. And if it is discovered as a secret, she can count on great resistance from the City Guilds and far reaching repercussions. Cedric [/QUOTE]
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