preorder incentives

[Mitch86 5,000+ posts]

Well known or not ANY company established or upcoming should not gamble a valued customers money, without paying their distributor first. That's just asking for disaster. As far profit at the end of the day the companies do it to make money if they didn't they wouldn't be here.

I agree! I was using an established company for an example (sundown) because they have proven to be a legit, reliable, well known (amongst forums anyway) company. Where-as a "up and coming" company MA

Y gamble witht the customers money. Which in that case, could turn into a disaster.

 

[g6ryder 10+ year member]

I agree! I was using an established company for an example (sundown) because they have proven to be a legit, reliable, well known (amongst forums anyway) company. Where-as a "up and coming" company MAY gamble witht the customers money. Which in that case, could turn into a disaster.

I understood what you were saying just was just elaborating IMO lol.

 

[g6ryder 10+ year member]

True that, like I said I'll be sending Mobile one, I'll talk to Taylorfade since he seems to be the goto guy for testing, I'll even send one out to you if you'd like G6 (This is when they come in of course, I'm obviously not opening a pre-order before distributor payment.)

Just a suggestion before asking potential customers what they look to in a Pre-order (which is some ways out going off comments) ask they customer what they look for in the product your going to offer and go from there get your design, proto, test, then talk/open Pre-order

 

[mlstrass 5,000+ posts]

I agree! I was using an established company for an example (sundown) because they have proven to be a legit, reliable, well known (amongst forums anyway) company. Where-as a "up and coming" company MAY gamble witht the customers money. Which in that case, could turn into a disaster.

Do you not remember when Sundown was looking for investors on this very forum? That was before they were the company they are now, so yes they were in fact taking a chance with other people's money. I only ponted that out since you used them as your example.

Luckily Jacob paid attention in his business classes and has turned Sundown into a very solid company. It could have just as easily gone the other way if Steve Miller was at the helm LOL

I can guarantee you that some companies use pre orders to help raise capital to pay for product. There is no other reason from a business standpoint, meaning why sell at a discounted price vs selling at full price.

Going back to Sundown, they are WELL established and have a huge following, do they really need to do pre orders to gauge interest. I'm betting no...

 

[Mitch86 5,000+ posts]

Do you not remember when Sundown was looking for investors on this very forum? That was before they were the company they are now, so yes they were in fact taking a chance with other people's money. I only ponted that out since you used them as your example.
Luckily Jacob paid attention in his business classes and has turned Sundown into a very solid company. It could have just as easily gone the other way if Steve Miller was at the helm LOL

I can guarantee you that some companies use pre orders to help raise capital to pay for product. There is no other reason from a business standpoint, meaning why sell at a discounted price vs selling at full price.

Going back to Sundown, they are WELL established and have a huge following, do they really need to do pre orders to gauge interest. I'm betting no...

I do not remember that. But it could very well have happened. I'm no business major and won't pretend to know what goes into running a business. But like you said, Sundown turned out to be a very solid company and they have made it and they seem to keep growing. No they don't have to do pre-orders to get their name out, but it is incentive for past customers also. Say you own one of their drivers and love it. A new comes out, a discounted price and loyalty to the brand from past experience might pull you in to buy the new line. For example, I would have bought SA8v2s at the pre-prder price point, but can't see myself paying the retail price. I'm sure others feel the same way. Discounts in any form are attractive...pre orders are about the only form of discount we can take advantage of. And again, a few hundred people preorder a new line and spread the word, that equals retail sales in the long run. The way I see it, pre-orders can be a win-win for both consumers and company.

I do see your point, but I think pre-orders bring more business and more "advertising" than just thefirst wave of pre_order sales. It gives companies a way of getting their products out there and in the enviroment where first hand experience plays the role of advertising. I would bet seeing/hearing/experiencing a product first hand sells a lot more products than plastering your name in advertisements.

 

[g6ryder 10+ year member]

Do you not remember when Sundown was looking for investors on this very forum? That was before they were the company they are now, so yes they were in fact taking a chance with other people's money. I only ponted that out since you used them as your example.
Luckily Jacob paid attention in his business classes and has turned Sundown into a very solid company. It could have just as easily gone the other way if Steve Miller was at the helm LOL

I can guarantee you that some companies use pre orders to help raise capital to pay for product. There is no other reason from a business standpoint, meaning why sell at a discounted price vs selling at full price.

Going back to Sundown, they are WELL established and have a huge following, do they really need to do pre orders to gauge interest. I'm betting no...

I bet yes. Do they need to gain interest of course they are established company sure but you should never be satisfied, he should want his company to continue to grow which im sure he does. No reason to do it? Established or not your customers ALWAYS like savings and will be more likely to order your products at a discounted price then if not. Most likely they will sell, however i bet if you did a study one sale without preorder and one with the one with would sell much better. Its a win-win the company still makes money while the customer gets their desired product cheaper than usual.

 

[g6ryder 10+ year member]

I do not remember that. But it could very well have happened. I'm no business major and won't pretend to know what goes into running a business. But like you said, Sundown turned out to be a very solid company and they have made it and they seem to keep growing. No they don't have to do pre-orders to get their name out, but it is incentive for past customers also. Say you own one of their drivers and love it. A new comes out, a discounted price and loyalty to the brand from past experience might pull you in to buy the new line. For example, I would have bought SA8v2s at the pre-prder price point, but can't see myself paying the retail price. I'm sure others feel the same way. Discounts in any form are attractive...pre orders are about the only form of discount we can take advantage of. And again, a few hundred people preorder a new line and spread the word, that equals retail sales in the long run. The way I see it, pre-orders can be a win-win for both consumers and company.
I do see your point, but I think pre-orders bring more business and more "advertising" than just thefirst wave of pre_order sales. It gives companies a way of getting their products out there and in the enviroment where first hand experience plays the role of advertising. I would bet seeing/hearing/experiencing a product first hand sells a lot more products than plastering your name in advertisements.

Well said

 

[xSPLoder 10+ year member]

Here is something to make me and my team possibly interested in your products, never mention a word about any Skarbage again! That is all.

 

[sundownz Pro Seller]

Not have a cookie cutter sub like Sundown, OA, Skar, DC, etc.

I see... The folder full of motor and parts designs that I personally drew and modeled up in my desk says otherwise... so does the room full of prototypes in the back.

I'd really like to see the cookie cutter mold where the SA-8 v.2 came from too... and all of the new frames and soft parts we are tooling.

I guess it is in style these days to call anything popular cookie cutter, boner, off the shelf, etc, etc.

 

[sundownz Pro Seller]

Do you not remember when Sundown was looking for investors on this very forum? That was before they were the company they are now, so yes they were in fact taking a chance with other people's money. I only ponted that out since you used them as your example.
Luckily Jacob paid attention in his business classes and has turned Sundown into a very solid company. It could have just as easily gone the other way if Steve Miller was at the helm LOL

I can guarantee you that some companies use pre orders to help raise capital to pay for product. There is no other reason from a business standpoint, meaning why sell at a discounted price vs selling at full price.

Going back to Sundown, they are WELL established and have a huge following, do they really need to do pre orders to gauge interest. I'm betting no...

For reference; from the very first pre-order we did the entire cost of the product was already covered by existing capital.

As for the earlier investment deal; it was through a now pretty successful site called Prosper (looks like 2007 is when I was working with that). The concept of crowd-funding is alot more popular these days. At the time we did end up getting a small amount through the site so it worked out pretty well.

Pre-orders primarily serve to get an initial buzz going anymore at least for us -- early reviews let later customers know what to expect. A little discount is an incentive for early adopters to give it a shot. Even as an established brand many people are still very reluctant to try new products / new versions.

 

[Flex68 10+ year member]

True that, like I said I'll be sending Mobile one, I'll talk to Taylorfade since he seems to be the goto guy for testing, I'll even send one out to you if you'd like G6 (This is when they come in of course, I'm obviously not opening a pre-order before distributor payment.)

You might consider sending out one to me and Audio_phill to test and report back on , here and on DIYMA....

Phil be the shizz !

 

[snoopdan 5,000+ posts]

And when the time comes there shall be testing done by people here.

This has worked well in the past. Companies like Massive Audio, Mach 5 Audio, and RD Audio have all come to me to do such testing. It worked out well to get their names out because I was willing to independently test and record scores with a temlab. I'm sure someone will be available to do that as well.

 

[VisceralSound 10+ year member]

You might consider sending out one to me and Audio_phill to test and report back on , here and on DIYMA....Phil be the shizz !

This has worked well in the past. Companies like Massive Audio, Mach 5 Audio, and RD Audio have all come to me to do such testing. It worked out well to get their names out because I was willing to independently test and record scores with a temlab. I'm sure someone will be available to do that as well.

thank you, I'll keep both of you in mind.

 

[VisceralSound 10+ year member]

You might consider sending out one to me and Audio_phill to test and report back on , here and on DIYMA....Phil be the shizz !

This has worked well in the past. Companies like Massive Audio, Mach 5 Audio, and RD Audio have all come to me to do such testing. It worked out well to get their names out because I was willing to independently test and record scores with a temlab. I'm sure someone will be available to do that as well.

thank you, I'll keep both of you in mind.

 

[pro-rabbit 5,000+ posts]

From my stand point, pre-orders will not start until we are about 30 days or less from having product ready to ship. It will also be in limited supply to give it more a "special" kind of situation.

The real deal is to offer your customers a better deal on products and get your "new" products out the door and get word out quickly. It works well for everyone involved actually.

Having several independent reviews prior to releasing anything works great and helps push the pre-order.

The biggest part of doing a CA company is the fine line of US/China and working with what will work with your goals for the company in mind. Pricing is key and understand the market and what actually sells the most in putting focus there before anywhere else.