Bmutha I was providing a rationale as to why it would make sense for Sideshow to cater to flex paying customers. I apologize if my original post came across as a declaration that Sideshow absolutely, positively caters to flex paying customers. There are inherent advantages for any business to receive a portion of their sale proceeds prior to completing the actual job / sale.
I have spent 20 years in Commercial Banking either lending to or approving loan requests for manufacturers like Sideshow. I have listened to Controllers and other Finance people talk about the advantages of receiving a portion of sales proceeds in advance. It's not a totally risk free proposition...Sideshow may receive your cash in advance, and they are free to use that cash as they wish, but there is still an offsetting liability (unearned revenues) sitting on their balance sheet. Obviously Sideshow still needs to make sure all flex payers receive their statues or they are obligated to give the money back.
But think about it, as a business owner if you receive a portion or all the sales proceeds up front...that is a huge advantage. You are not as dependent on Banks for working capital lines of credit. As a business, if you are not borrowing as much from banks, the amount of interest expense you pay on an annual basis is less. This translates to more of your revenues flowing to the bottom line. Think about the freedom of being able to invest those funds, and earn a nice rate of return prior to having complete the sale. Not only does Sideshow earn the profit margins embedded in the cost of their statues, but they could also generate interest income from investing your pre-payments. And even if you elect to cancel your flex pay agreement....I believed you are charged a fee. So at the very least, Sideshow earns the cancellation fee and is free to sell your statue to someone else on another flex pay agreement. My whole point was there is incentive for Sideshow to encourage more of their customers to use flex pay. Therefore I would not blame Sideshow if they made a conscious decision to include more flex payers in the first batch of shipments.
IMHO flex pay agreements are good for Sideshow and beneficial for customers as well. Flex pay allows many customers to budget for their purchases...which is a good thing. I know a number of fellow collectors that are leveraged to the hilt with credit card debt from engaging in this hobby. The only downside of the flex pay agreement for customers is an opportunity cost. In other words, by giving your money to Sideshow in advance, it obviously prevents you from using it to do other things such as reduce any interest earning obligations you may have (mortgage, car payments, credit cards) and/or you are unable to invest those funds and earn your own rate of return.
