Crain’s: If I Knew Then

The Mistake:

It came within our startup company’s first year of operation, [when we were] trying to establish ourselves. We would do pretty much anything to land new business, particularly because our clients are typically the top retailers and manufacturers in the country.

We work with retailers and manufacturers to bring them a solution designed to make them more money from their liquidation of goods. If our clients sell X amount of product, we charge them some percentage of X as a transaction fee. [Each side tries] to drive prices higher because the higher the prices, the higher the transaction fee will be for us. This gives us the incentive to drive the client to want to put more of their volume through our platform; more volume means we make more money.

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