DCBS Breakeven Analysis

Danscomics · Post by **Danscomics** » Wed Apr 18, 2012 6:58 am

boshuda wrote:I just looked it up - I was incorrect about there being a federal sales tax. I got it confused with a state sales tax with the addition of the county and/or local municipality tax. So I incorrectly moved that tax up one level (state became federal, county became state). All periodicals are exempt in NYS:

Newspapers and periodicals

If you sell publications that qualify as newspapers or periodicals for sales tax purposes, you don't need to charge sales tax because they're exempt. The exemption also applies to charges for electronic versions of newspapers or periodicals if you sell a hard-copy version, and both versions contain the exact same information (except for advertising).

<snip>

To qualify as a periodical, a publication must:

be published in printed or written form at stated intervals at least four times a year;
have continuity as to the title and general nature of the content from issue to issue;
contain a variety of articles by different authors devoted to literature, the sciences or the arts, news, a special industry, profession, sport, or other field of endeavor;
be available for circulation to the public; and
not constitute a book, either singly or when successive issues are put together.

A newsletter may qualify as a periodical if it conforms generally to the above standards. If a newsletter has no signed articles, but has a staff of writers who prepare articles, it will be considered to have articles by different authors. Whether a publication has been classified by the United States Postal Service as one that is entitled to second-class mailing privileges will also be considered in determining if it is a periodical.

Publications that don't qualify as newspapers or periodicals include:

listings and compilations that are information services (see TSB-M-10(7)S, Sales and Compensating Use Tax Treatment of Certain Information Services, for more information);
publications issued at stated intervals but that are actually books or parts of a book;
and publications that were originally periodicals, but that are sold at a price that does not reflect the normal selling price (i.e., sold for collection or investment purposes).

Yeah, the New York State Tax law is a pain in the butt for us retailers bexcause of that second piece you highlighted. I just hired two new employees and I had to teach them which comics are taxed and which aren't. To make things easy though we just say that all back issue bin comics that are priced are taxed and all new releases and $0.99 bin comics are not.

Paul Nolan · Post by **Paul Nolan** » Thu Apr 26, 2012 10:02 am

the only thing I don't get with DCBS is why they make you pay so early.

With 86th Floor in the UK they charge me as they're just about to ship and with my LCS, Forbidden Planet Southampton, they recieve their invoice with the weeks shipment.

by my estimations DCBS are charging their customer around 8 weeks before they have to pay Diamond.

BobBretall · Post by **BobBretall** » Thu Apr 26, 2012 12:18 pm

Paul Nolan wrote:the only thing I don't get with DCBS is why they make you pay so early.

by my estimations DCBS are charging their customer around 8 weeks before they have to pay Diamond.

1) They can offer better discounts because the books they order are guaranteed pre-sold & are not going to sit in their inventory. If they waited to charge you until later & then someone decides to bail on them and not make the payment, then they will potentially have to eat those books.

2) I don't know about you, but for most things I buy (regular comics, not pre-solicited stuff or books that come out WAY late) I don't actually pay for them much before they show up in my hands.
SAMPLE TIMELINE:
* April: I fill out the order form due by the end of April for books that will hit the store in the June-July time frame.
* My credit card gets charged for these books on ~May 15th
* I get my credit card bill on ~June 10th, the bill is not due until ~July 10th.
* I send in a check about a week before it's due, but the funds don't really come out of my account until maybe July 15-20th.
* So, I'm already getting books I ordered before the money ever leaves my checking account.

This will vary for other people, and since I don't carry a balance on my credit card, I'm not getting zapped with interest payments or anything. This system works really well for me. I get a good discount, DCBS gets a guaranteed sale, and the 'float' means I'm not really paying in advance at all.

Post by **JohnMayo** » Thu Apr 26, 2012 5:50 pm

Just last night I did the online bill pay for my February 2012 order. That payment should go out today. That order had about 170 line items of which all but 20 are things that I've already gotten or are in transit. So, I don't really feel like I'm paying in advance for my comics.

ctowner1 · Post by **ctowner1** » Fri Jun 15, 2012 8:27 am

hey..I notice DCBS shipped via USPS this week (as opposed to UPS or Fed Ex, which they've used in the past). Looks like this is resulting in me NOT getting my comics today/Friday, as I usually do. Anyone know if this is just a one off thing? Or is this their new shipping plan?

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boshuda · Post by **boshuda** » Fri Jun 15, 2012 8:55 am

I suspect it's whoever is cheaper at the minute. I had been all UPS until two shipments ago, when it switched to Fedex.

torchsong · Post by **torchsong** » Fri Jun 15, 2012 8:59 am

boshuda wrote:I suspect it's whoever is cheaper at the minute. I had been all UPS until two shipments ago, when it switched to Fedex.

That'd be my guess as well. I get my books once a month, so I never worry about how they're getting to me...as long as I get 'em!

ctowner1 · Post by **ctowner1** » Fri Jun 15, 2012 9:01 am

boshuda wrote:I suspect it's whoever is cheaper at the minute. I had been all UPS until two shipments ago, when it switched to Fedex.

actually, they used to use fed ex a few yrs ago..then switched to ups..then, as you mentioned, back to ups lately. I didn't mind fed ex vs. ups, bb/c got my comics by Friday either way. But looking at the USPS tracking notes, doesn't look like I'm getting my books today! Bummer!

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Trev · Post by **Trev** » Fri Jun 15, 2012 9:50 am

ctowner1 wrote:
boshuda wrote:I suspect it's whoever is cheaper at the minute. I had been all UPS until two shipments ago, when it switched to Fedex.
actually, they used to use fed ex a few yrs ago..then switched to ups..then, as you mentioned, back to ups lately. I didn't mind fed ex vs. ups, bb/c got my comics by Friday either way. But looking at the USPS tracking notes, doesn't look like I'm getting my books today! Bummer!

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I expect they put their account in play and are testing new shippers. Best to send them email if you are happier or less happy.

ctowner1 · Post by **ctowner1** » Fri Jun 22, 2012 10:22 pm

ctowner1 wrote:
boshuda wrote:I suspect it's whoever is cheaper at the minute. I had been all UPS until two shipments ago, when it switched to Fedex.
actually, they used to use fed ex a few yrs ago..then switched to ups..then, as you mentioned, back to ups lately. I didn't mind fed ex vs. ups, bb/c got my comics by Friday either way. But looking at the USPS tracking notes, doesn't look like I'm getting my books today! Bummer!

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Actually, as it turned out, my comics DID come on Friday last week!

Great job, dcbs!!

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