How I Got my $3500 Camera Kit Stolen on KitSplit for $70

Started 2 months ago | Discussions thread
RCicala Contributing Member • Posts: 609
Re: 1 in 50, not 1 in 5,000

MarshallG wrote:

RCicala wrote:

I started Lensrentals. Back in the day we were tiny, there were a number of other tiny companies, we all banded together and worked with each other to try to prevent fraud. Because 1 in 20 orders tried to steal gear. (This is a pretty universal, rate, BTW, retailers generally say the same thing.)

15 years ago every camera store owner I spoke with said "Roger, you are out of your mind, you're gonna get robbed blind." I didn't listen to them because I knew the risk, had a plan and did the math.

The risk: 1 in 20 orders will be fraud.

The plan: Reduce that to 1 in 50 orders through good risk management.

The Math: Make sure the profit from 39 of 40 orders (I wanted some wiggle room) orders left me profitable when I lost all the gear from the other order.

Have you guys who are renting your gear done your math and made a plan?

If you want the bad news, though, the first two years of an online business are the 'fraud honeymoon'. It generally takes that long for fraudsters to notice the business and figure out the best ways to scam it.

1 in 50? That's interesting, cause KitSplit says the rate is 1 in 5,000.

Pretty easy for me to know who's figure to trust.

If it was 1 in 5,000 I'd have retired 6 years ago.

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