How much $$ is DJI making off Interest

[DrPeppar]

If you ordered direct from DJI you have been charged and they have your money, they have loads of our money now and of course we are droneless.
Any ideas how much DJI is making daily just on the interest of those dollars, euros, scheckles, rubles?

I'm not complaining just passing time, making small talk and waiting for mine.

 

[HeliFreak]

I estimate $14,000 USD per day

(based on completely off my head numbers of 100k pre-orders, $1000 avg per order, and 5% interest)

 

[sebastianschneiderc]

Probably not that much. Since interest rates in USD dollars aren't so high (about 0,7% anualized return for 1 month in a time deposit with banks such as BNP Paribas, Mizuho Bank, TD Bank, Nordea, etc) and assuming they received US$ 100.000.000 in pre orders, that would give them about USD $ 70.000 per month.

 

[DrPeppar]

Not as much as I thought but not bad. I hope they have figured it out soon I'm about ready to fly.

 

[The Editor]

Probably not that much. Since interest rates in USD dollars aren't so high (about 0,7% anualized return for 1 month in a time deposit with banks such as BNP Paribas, Mizuho Bank, TD Bank, Nordea, etc) and assuming they received US$ 100.000.000 in pre orders, that would give them about USD $ 70.000 per month.

Based on how quickly they emptied US DJI bank accounts when Colin (Cell phone salesman) Guinn fiasco was unfolding it's probably already in Bank of China already attracting far better interest!

 

[DefaultIT]

Where's this 5% interest coming from?? I want in on this

 

[HeliFreak]

Maybe I was too generous on the 5%, I just made up a number that seemed plausible based on some of my investments.

 

[fakbik]

We should demand they divide the $70 equally among us, there should be enough to go around right? I would prefer it if my portion of a penny was mailed, if it could include part of abe's beard, I would be pleased.

 

[ATXdrone]

I don't know about you all but I ordered from my local camera dealer who also does a big drone business. Primarily so I could help keep local brick and mortar in business. So DJI isn't making any interest on my money, my dealer is.

 

[netscorer]

Gosh, you guys a re pathetic. DJI is barely making any money if at all from the preorders. Judging by the demand, most probably they are throwing every penny they have in manufacturing capacity at the moment, so, in effect, you would get your Mavics bit faster for agreeing to part with your money in advance. Even if they stash some of it, this would be an operational fund, deposited in the most liquid accounts - the ones that hardly generate any interest.

 

[Lightsout]

How much money is DJI losing because P4 and P3 sales are now in the toilet, they is the real question, this delay is not only hurting theirconsumers it is costing them $$$ also

 

[Anthony Viscomi]

Not sure about GAAP in China, but here in the states it would be an accounting pain in the ***. They have funds received from pre-orders, thus it hits an receivables account (Pre-paid Income) and stops there. The was no sale nor was any finished stock taken from inventory. Basically, they (DJI) would have to report the income at the time the pre-order funds were received whic kinda overstates there books for that reporting period. It balances out once the pre-order becomes an actual sale and inventory is removed from stock.

Bottom line is that DJI is not squat on interest, nor would they want to from an accounting perspective.

 

[Advexure]

As @Anthony Viscomi mentioned, interest is absolutely nothing in the situation that DJI is in. The R&D that went into the Mavic was a huge cash burn, how about the cash that they're pouring into their manufacturing processes to mass produce such a heavily demanded product and significantly increase production capacities? I totally understand why you mention this point but a little further analysis is required into the significant investment in R&D to bring this kind of platform to market.

I don't know about you all but I ordered from my local camera dealer who also does a big drone business. Primarily so I could help keep local brick and mortar in business. So DJI isn't making any interest on my money, my dealer is.

@ATXdrone, understand the point you were trying to make but just so you are aware, DJI dealers have also pre-ordered their units and for the first couple batches, they have paid in full for these orders to guarantee shipping slots.

I can assure you that we (and other larger dealers) aren't collecting any interest when we've got hundreds of units on order with DJI that have been paid in full to guarantee early shipping slots. Your point could be valid with a smaller dealer that hasn't been able to get units on pre-order with DJI but they have been able to collect a few pre-orders ahead of time.

 

[Dirty Bird]

This is untrue. DJI makes the maximum amount of money per unit on direct sales because the customer is paying the full retail price directly to DJI, unlike resellers who purchase at bulk or wholesale pricing.

Gosh, you guys a re pathetic. DJI is barely making any money if at all from the preorders. Judging by the demand, most probably they are throwing every penny they have in manufacturing capacity at the moment, so, in effect, you would get your Mavics bit faster for agreeing to part with your money in advance. Even if they stash some of it, this would be an operational fund, deposited in the most liquid accounts - the ones that hardly generate any interest.

 

[Advexure]

This is untrue. DJI makes the maximum amount of money per unit on direct sales because the customer is paying the full retail price directly to DJI, unlike resellers who purchase at bulk or wholesale pricing.

I am interested in hearing additional justification on your point of view regarding this topic. When you mention that it is "untrue," what is your justification for this given that DJI has been in full-on cash burn throughout the Mavic R&D process? Also what are your thoughts regarding DJI's [assumed] investment in increasing manufacturing capacity? Sounds like a lot of cash burn to me but am interested in your point of view seeing that you are taking an opposing viewpoint.

 

[Dirty Bird]

You are taking my post way deeper than I intended. DJI decided on Mavic pricing. One would think they chose a price sufficient to cover the cost of R&D & manufacturing while turning a profit. My comment was only pointing out that direct sales are DJI's most profitable on a per-unit basis since the customer is paying full retail to the manufacturer.

I am interested in hearing additional justification on your point of view regarding this topic. When you mention that it is "untrue," what is your justification for this given that DJI has been in full-on cash burn throughout the Mavic R&D process? Also what are your thoughts regarding DJI's [assumed] investment in increasing manufacturing capacity? Sounds like a lot of cash burn to me but am interested in your point of view seeing that you are taking an opposing viewpoint.

 

[Advexure]

You are taking my post way deeper than I intended. DJI decided on Mavic pricing. One would think they chose a price sufficient to cover the cost of R&D & manufacturing while turning a profit. My comment was only pointing out that direct sales are DJI's most profitable on a per-unit basis since the customer is paying full retail to the manufacturer.

Understandable. Your comment is correct on a per-unit basis. Sorry for taking things further than you intended.

 

[tchoupsley]

The money DJI will be dumping into expediting everything to get these out in the numbers they have now and recouping what they have already spent to build this drone is a drop in the bucket for my tid bit of money. Not really worried about it. Don't let that stop you from being pissed and make sure to cancel your order please.

 

[Dirty Bird]

If DJI has a million overall preorders between dealers & direct sales then they have a billion dollars in their account to handle any expenses.

The money DJI will be dumping into expediting everything to get these out in the numbers they have now and recouping what they have already spent to build this drone is a drop in the bucket for my tid bit of money. Not really worried about it. Don't let that stop you from being pissed and make sure to cancel your order please.

 

[tchoupsley]

If DJI has a million overall preorders between dealers & direct sales then they have a billion dollars in their account to handle any expenses.

Yes, but the price of every widget they are ordering from other companies just went up drastically too when they started having to expedite their parts. Materials for those parts went up drastically to supply those making the parts. Lots of people making money off this outside of DJI as well.

Expediting stuff isn't cheap, do it all the time to keep lots of people's lights on in the valley.