Appreciate the actual numbers... though I still don't doubt that this is a reason for doing this. You could easily drop that cash into something that will garner you 5-6% and maybe it's still not much on the 2600 orders, but when you do this for all pre-ordered products across the board I'm sure that is a LOT of cash money.blw wrote: ↑Fri Feb 28, 2020 11:32 amSay Sam Ash got 50 units and took prepaid preorders for $4300. $215000 extra in their accounts. Yay! But interest rates are so low, and those funds need to remain fluid. So, their bank account yields 1.xx% interest or a money market account gets around 2%. On the high end, that's $358 a month. I'd guess Sam Ash doesn't care too much about that. Even if you think they are getting 10% interest from some investment, I still don't think the $1500/month yield is enough money to seem like a strategy.
PayPal holding your funds for 2-3 days in the old days or 1 day now . . . that must be a pile of money. This seems too small, though.
And I absolutely don't doubt that PP are operating the same way, and have been for a while (banks too). But what can you do about it (aside from not use them, which I would prefer)... really great example of how powerless one is in the face of some of these mega-corps. The funny thing is, remember when PP actually gave really good interest on money left in the account? Was like 5%? Seems like a dream now.
