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Because a startup is a serious risk for this sort of thing, I wonder if the 'groupon' idea could be adapted to this sort of purpose. Buyers pre-order their keyb

by Kaizyn 16y ago

Because a startup is a serious risk for this sort of thing, I wonder if the 'groupon' idea could be adapted to this sort of purpose. Buyers pre-order their keyboards of a certain design and price, and the order is batch manufactured and shipped after a certain number of people sign up. Considering what can be done with small batch manufacturing these days, it seems like it would be easily doable.

astrodust 16y ago
If it follows the GroupOn model, then 70% of the up-front money collected would be deducted as a fee by the aggregator, another 2-4% by the credit card companies, and at least 10-15% in charge-back and refund related processing costs. For $100K in pre-orders you might have a good $10K to manufacture the product. I'm not sure how other sites like United Artists operate, but Jim Woodring got some money to make a crazy huge fountain pen. http://projectsite.unitedstatesartists.org/project/giant_steel_dip_pen_and_penholder_for_demonstration_and_display http://projectsite.unitedstatesartists.org/project/giant_ste... Maybe that model works better.
- Kaizyn 16y ago
  OK, United Artists is a cool idea. GroupOn sounds worthless as you describe it. The idea is simply to create enough aggregate demand to commission and design a product in small batches, even though you aren't dealing with a mass market product. Such a model would go very well with any of the open source design initiatives out there where plans/designs for physical goods are worked on and improved upon by the Internet community at large to everyone's benefit.
kls 16y ago
Actually this is a good idea for just in time manufacturing. Have mechanical engineers / electrical engineers prototype a product in cad and put it out in a catalog. Once enough purchases are placed then you do the manufacturing. Have a cut off date that all of the money is refunded if the threshold is not met. The company keeps the cash in secure interest bearing securities and keeps the interest even if the mark is not met.
- eli 16y ago
  This is how Time Life books & movies used to work. They'd advertise "Secret Lives of Nazis" or whatever, but only actually make it if enough people call to order.

by Kaizyn 16y ago

astrodust 16y ago

If it follows the GroupOn model, then 70% of the up-front money collected would be deducted as a fee by the aggregator, another 2-4% by the credit card companies, and at least 10-15% in charge-back and refund related processing costs. For $100K in pre-orders you might have a good $10K to manufacture the product. I'm not sure how other sites like United Artists operate, but Jim Woodring got some money to make a crazy huge fountain pen. http://projectsite.unitedstatesartists.org/project/giant_steel_dip_pen_and_penholder_for_demonstration_and_display http://projectsite.unitedstatesartists.org/project/giant_ste... Maybe that model works better.

Kaizyn 16y ago
OK, United Artists is a cool idea. GroupOn sounds worthless as you describe it. The idea is simply to create enough aggregate demand to commission and design a product in small batches, even though you aren't dealing with a mass market product. Such a model would go very well with any of the open source design initiatives out there where plans/designs for physical goods are worked on and improved upon by the Internet community at large to everyone's benefit.

kls 16y ago

Actually this is a good idea for just in time manufacturing. Have mechanical engineers / electrical engineers prototype a product in cad and put it out in a catalog. Once enough purchases are placed then you do the manufacturing. Have a cut off date that all of the money is refunded if the threshold is not met. The company keeps the cash in secure interest bearing securities and keeps the interest even if the mark is not met.

eli 16y ago
This is how Time Life books & movies used to work. They'd advertise "Secret Lives of Nazis" or whatever, but only actually make it if enough people call to order.