Ergodox massdrop groupbuy discussion

User avatar
Vierax

08 Nov 2012, 02:20

webwit wrote:I vote group buy because massdrop is fashionable but in the end 3rd party for profit and not community.
That's exactly my thoughts.

Like the soldering service, the "logisticians" can be remunerated with some parts (Teensy, keycaps, PCB, etc…) instead of payment.
It can be healthier than money, don't you think ? and avoid any tax problem considering that is not a job at all because it's not paid ;)

AloisiusFauxly

08 Nov 2012, 02:28

webwit wrote:That argument can go any way. Massdrop can go tits up just after being handed $20-30k.
Could, but in that case I would hope they'd refund money to the people in group buys or else they would likely face legal action. And I trust in their (apparent) business model and their desire to succeed at it.

User avatar
JesuswasaZombie

08 Nov 2012, 03:06

Ask people involved in the phantom parts buy how much they enjoyed it...

lowkey144

08 Nov 2012, 03:47

The group buy logistics on a project of this magnitude means that not only will that someone be handling a huge amount of cash, but they will also have to devote hundreds of hours into coordinating the back and front ends of the project.

If someone is willing to step up and do this in a timely manner then I am all for it, but so far no one seems too exited about taking on that kind of individual responsibility.

Fashionable or no, Massdrop offers a service that is seemingly fast, and flexible to individual location and preference, so a 5% skim does not seem too unreasonable, regardless of the profit motive. Unless there is some lurking horror story about the service, it is certainly the most realistic solution that has been bandied about so far.

bisl

08 Nov 2012, 07:03

webwit wrote:That argument can go any way. Massdrop can go tits up just after being handed $20-30k.
Similar to JesuswasaZombie's point, ask people involved in changdrew's taobao or imsto buys how easy it is to get your money back from a community figure if the buy falls through.

bisl

08 Nov 2012, 07:28

Vierax wrote:I don't know how much Massdrop takes for their service (5% ? 10%?) but I think it's a thing to check before starting.
Their financials aren't anywhere in their About, their FAQ, or their Terms of Service, and with good reason; I wouldn't expect them to readily show us the secret sauce anyway. This is their business model, after all. But, for what it's worth, I've sent them an email to ask if they're at liberty to say, just so we're better informed.

However, number-crunching aside, I want to point out the immense value in the rate negotiation, money handling, and shipping they'll be providing for probably around 200 units (according to Dorkvader's most recent lists). This is a service that--as we can readily see--no one wants to perform, and I strongly believe it's a service worth paying for.

AloisiusFauxly

08 Nov 2012, 07:33

bisl wrote:This is a service that--as we can readily see--no one wants to perform, and I strongly believe it's a service worth paying for.
Agreed. Massdrop seems like the best and perhaps only way forward at this point.

@lowkey144 - The term "bandied about" does not get bandied about often enough.

User avatar
Vierax

08 Nov 2012, 08:41

bisl wrote:
Vierax wrote:I don't know how much Massdrop takes for their service (5% ? 10%?) but I think it's a thing to check before starting.
Their financials aren't anywhere in their About, their FAQ, or their Terms of Service, and with good reason; I wouldn't expect them to readily show us the secret sauce anyway. This is their business model, after all. But, for what it's worth, I've sent them an email to ask if they're at liberty to say, just so we're better informed.

However, number-crunching aside, I want to point out the immense value in the rate negotiation, money handling, and shipping they'll be providing for probably around 200 units (according to Dorkvader's most recent lists). This is a service that--as we can readily see--no one wants to perform, and I strongly believe it's a service worth paying for.
It's not acceptable as a seller who doesn't send a pricelist : Does the price depend to the customer's face or to the psychological profile of buyer category? the "recipe" is ever known : it's not the only company to offer this kind of service and there is no reason to hide this information, there is no good reason except if they make profit with dropping down prices with component factories to keep the difference. At my level, I use Paypal and used Etsy and this is the first thing I check when I chose an intermediary to sell things.

bisl

08 Nov 2012, 08:46

Vierax wrote:it's not the only company to offer this kind of service
If you have others in mind, simply name them and I will weigh them against Massdrop and any others that surface. I'm not married to Massdrop; they just seem like the best choice at the moment.

User avatar
fossala
Elite +1

08 Nov 2012, 09:14

Is it just me or are the people wanting to use massdrop people with <50 posts? The come to the community and because they want to buy a product. They the tell us how we are going to do it? For all we know, they could be a massdrop sales rep. We already know they like to advertise to us on here.

User avatar
7bit

08 Nov 2012, 09:28

These keyboard group buys are relatively easy to handle. What is the problem in receiving the parts, pack the orders and ship?

With Phantom I had 2 big problems: The plates and PCBs took forever to arrive (plate production took too long) and I had to wait 2-3 hours at the customs office.

Packing each order into bags was easy. I did this within a few days. Just packing them into boxes was a bit more time consuming. Then, getting them to the post office before closing time is another thing...
:-)

ps: I will not help with shipping the ErgoDox, because I've got other things to do ...
:roll:
Last edited by 7bit on 08 Nov 2012, 10:12, edited 1 time in total.

User avatar
Vierax

08 Nov 2012, 10:02

bisl > I thought about Kickstarter but it's not the same.

webwit > me too this fracking log/sign frame doesn't make me confident : I don't want to spend time to register under a false name just to be able to click the "About" link on footer.

fossala > nice look ! I'm sick of only-sellers/finders new members who don't even read the pinned thread and don't take the effort to say a simple "Hello everyone" : That's not the way it works to enter in a community. So I'm totally worried about your paranoia :D

7bit > They're just lazzy and have a few extra money to stay as it.

AloisiusFauxly

08 Nov 2012, 11:21

MassDrop's registration wall is ridiculous.
7bit wrote:ps: I will not help with shipping the ErgoDox, because I've got other things to do ...
That has been the problem so far - no one has stepped up to do it. With the potential for 150-200 units, that's a lot of time for someone or a group of people to dedicate to logistics and the business side of things.

I'm going to try and contribute to this project. Sorry if I didn't say hi. Hi.

User avatar
7bit

08 Nov 2012, 12:00

Yes, but I will not do it because I run my own keyboard group buy. If someone wants this keyboard he should organize this group buy.

Apropos Massdrop: They offered 'help' with Round 4, but it will surely be too complex to be handled by them.

On the other hand: A keyboard group buy is not complex enough to rectify any 'help' from out side.
:lol:

User avatar
justcallmecrash

08 Nov 2012, 15:24

I don't know what my post-count on this forum is, but I've been a member over at GH for a year and a half and have done classifieds business with at least 20 people over there. Sure, I came here when GH went down and I needed a mechboard fix (sometimes a guy just needs to talk about keyboards... you all know that), but I've come to prefer this site to the other and this project is absolutely outstanding. My first post in this thread was mid-July and I've been watching it like a hawk ever since. Being a Dvorak typist who has to move around the building to others' machines all day, I reeeeeeeally want a hard-wired Dvorak board I can take around with me... this would be ideal. With all that said, sure, I have around 50 posts and liked the idea of using Massdrop... it sounds like less work for our community members (many of whom have already contributed to this project) and it was presented well by bisl. But if it's causing strife, we'll figure out something else. There seem to be wildly contradictory points of view regarding the amount of work this group buy and distribution will be for a member. Seeing as I'm new here (and based in the States) I'm not EVEN going to volunteer and expect you to trust me. Who DO we trust? More importantly, who do we trust that WANTS to take this on? I'm thinking about all the counting of parts, bagging of same, boxing, shipping, filling in customs paperwork, etc.... there are lots of points in the process where this can break down and I really want it to succeed. As we're creeping up on completion (on the dev side) we need to make sure we have our distribution ducks in a row so that part doesn't turn into a headache once things are moving.
Just the thoughts of a low-post-count ergodox lover.

OrangeJewce

08 Nov 2012, 16:47

fossala wrote:Is it just me or are the people wanting to use massdrop people with <50 posts? The come to the community and because they want to buy a product. They the tell us how we are going to do it? For all we know, they could be a massdrop sales rep. We already know they like to advertise to us on here.
Nobody is "advertising", only proposing suggestions for a real problem that this project is going to have in terms of logistics. There are a lot of parts, and if we have 200+ buyers at 300 USD a piece, we're looking towards at least 60,000 USD. No one person wants to handle that much cash, and nobody is going to trust them, regardless if post count/legacy.

The logic behind the registration wall is that they can't display GB prices which would be under MSRP. Obviously this is odd because Newegg does that with a "click here to see price" link. Anyways, that was the predominant logic. If they refuse to tell us what they are looking at for a cut, Obviously it's not worth going with them. Shady is shady, regardless of how nice they were at the GH meetup.

I am getting really tired of saying there won't be a PCB only buy. That isn't going to happen. Stop asking. We are not going to split initial order. Everyone will get the same price, regardless of whether you want a case or not. After the initial buy the designs will be released under GPL and then you are free to do a PCB buy whenever or however you like.

I'm not going to volunteer because a) Nobody is going to trust me with, and I don't want the responsibility of, handling the amount of money we are talking about here. b) I don't have the time to do an escrow account or other banking work for this (as well the potential tax headache), And I definitely don't have the time, expertise, or energy to pack upwards of 200 eDox's.

Cheers,

User avatar
webwit
Wild Duck

08 Nov 2012, 16:56

I don't get the point where people you might know, inside the community, cannot be trusted, but some company run by unknown, can. Doesn't sound like a good community. These groupbuys run fine on the Korean forums. Why can't we? I think the trick is to not have it handled by one person, but multiple persons ("senior" members), and make a fun community project out of the groupbuy instead of a possible burden for a single person. That looks healthy to me. I think Massdrop etc. is only interesting if you want to make it bigger than the relatively hardcore keyboard communities.

User avatar
JesuswasaZombie

08 Nov 2012, 17:00

For the third time, BaudlyDamage is active on GH and hosted a California meet up. So he isn't quite unknown.

The mass amount of sorting etc (Logistics) is something that would take a huge amount of time, especially with full kits for 200+ people..

However, if the direction people want to take the GB is purely through the community then I will be more than happy to help sort/ distribute US orders. Hopefully with the help of Sth & HB ;)

User avatar
webwit
Wild Duck

08 Nov 2012, 17:06

Well, be sure to tell him at his next promotion that registration walls aren't cool. :mrgreen:

lowkey144

08 Nov 2012, 17:10

@fossala
The come to the community and because they want to buy a product. They the tell us how we are going to do it?
I found this community after an exhaustive search of the net for a keyboard that fit my specifications, I was overjoyed when I found the thread on geekhack, but the deskthority site seemed to be a more cohesive community so I alighted here. My priority is to make this a keyboard reality as quickly and as safely as possible, I believe that all the "newcomers" have said as much, but I don't know all the major actors here.

The point is that if you do not like that we are trying to go one way with the project, then give us a tangibly better option and I am sure that we will all hop on board. Hell, at this point I would take just the PCBs in a normal group buy. It is not like the other parts are difficult to buy through the various electronics suppliers around the net, notwithstanding the markup.
For all we know, they could be a massdrop sales rep. We already know they like to advertise to us on here.
Who is they exactly, which one of us here is a supposed an employee of massdrop? I was a longtime contributor to several forums and the general rule was to assume the good faith of new members. I would hope that that is the same here.

"We", whoever that is, in pages 19-23 of this thread have seriously considered kickstarter, indiegogo, massdrop, and a community buy. The first two got shot down because someone would still get all the money, so it is not really any different than a community buy. And the community buy still lacks a person (or persons) willing to step up and take the project on, unless the pace of things in this thread has prevented that brave and dedicated person from seeing our plight.

So we are left with massdrop and other as our current choices. The process, as far as I can tell, has not been malicious or directed, but again, I haven't the grasp of this forum's history that some others might.
Last edited by lowkey144 on 08 Nov 2012, 17:14, edited 1 time in total.

OrangeJewce

08 Nov 2012, 17:10

webwit wrote:I don't get the point where people you might know, inside the community, cannot be trusted, but some company run by unknown, can. Doesn't sound like a good community. These groupbuys run fine on the Korean forums. Why can't we? I think the trick is to not have it handled by one person, but multiple persons, and make a fun community project out of the groupbuy instead of a possible burden for a single person. That looks healthy to me. I think Massdrop etc. is only interesting if you want to make it bigger than the relatively hardcore keyboard communities.
I'm not suggesting we should trust them either. I don't trust anyone when we're talking about tens of thousands of dollars sitting in an account. If you want to do multiple people handling an escrow account that needs multiple/unanimous authorization for a withdrawal you are talking about a lot of paper and administrative work.

Obviously this is going to happen and we will make it work. If we wanted to expand the audience and not make it open source, then obviously kickstarter or something similar would be really great for this. However, that's not what massdrop like companies offer.

Again, I'm not defending massdrop, only suggesting that there is a problem that needs a solution. It would be nice if we had a group of people that could handle all of this, but people both here and GH are impatient and want to know who will be handling the GB and it's logistics right now. Noone has stated up front they want to participate in this so right now everything is theorycrafting. The idea behind massdrop is to circumvent this and employ a company to do this for us. This is just an idea. Doesn't mean it's a good idea or a bad one.

Cheers,

User avatar
JesuswasaZombie

08 Nov 2012, 17:21

webwit wrote:Well, be sure to tell him at his next promotion that registration walls aren't cool. :mrgreen:
oh, we did. that was pretty much the first thing.

AloisiusFauxly

08 Nov 2012, 19:09

7bit wrote:Yes, but I will not do it because I run my own keyboard group buy. If someone wants this keyboard he should organize this group buy.
I didn't mean to suggest that you do it, just that everyone seems to be busy with other things. I can imagine you've got enough on your plate.

The earlier PCB buy will work as long as someone is a) willing to sit with $4,000 of PCBs after only selling $500 to those who want just them or b) everyone who is getting a full kit is willing to put in their money now, or at least enough of their money to cover the PCB.

However, if what litster said about the discount diminishing after 30 PCBs is accurate, then a group buy for only PCBs for the small number who want them would work not only for those getting early PCBs, but also wouldn't impact the bottom line for the main group buy.
litster wrote:The bigger problem is, as with other GBs, is money collection, and PayPal/IRS (for USA anyway). EU folks may work around with bank transfer. NA folks will need to do PP, or personal checks or cashier's check.
Yeah, it's things like this that are why people are suggesting a service like indiegogo or Massdrop that takes care of all of that for us. If trustworthy people want to step up and handle part sourcing and shipping logistics, indiegogo takes a 4% cut, which is pretty minor IMO. Since no one has offered to step up, having Massdrop do all the work for a 5%-15% cut is our other option.

If no one's volunteering, we're going to have to pay someone. Might as well be people that specialize in this sort of thing.
Last edited by AloisiusFauxly on 08 Nov 2012, 20:06, edited 2 times in total.

AloisiusFauxly

08 Nov 2012, 19:17

dirge wrote:I'd love to see Dox give some guidance.
He did, a few pages ago:
dox wrote:I've been quite busy lately but I can see that a lot of people want to get the group buy going.
I won't have time to run it personally but someone else can do it.
I don't really care if it's done with massdrop or a group buy. From what I've read in the last few posts, massdrop looks like a good idea.

User avatar
gdaian

08 Nov 2012, 23:22

At the risk of passing for a Massdrop sales rep, I'm registering to weigh in on the current discussion.

I'll start by introducing myself, as has been suggested. Hello everyone. I came through GH, which I found via key64.org which I googled after seeing a comment on a youtube video of the TrulyErgonomic which was in the sidebar when I looked at several Kinesis videos that I stumbled upon during my (days long) search for the perfect keyboard which began when I was disappointed with the TypeMatrix I ordered after my laptop keycaps had become wiggly because I tried to physically reorder them to suit the Colemak layout which I decided to adopt when I realized the inefficiency of qwerty for comfortable typing which I figured I would be doing lots of as I have decided to learn python. I still haven't started learning python.

So I'm a newbie in the word of mechanical keyboards, and my motives may be less pure than most people here. Nevertheless I'm now taking a huge interest in MKs and am extremely excited by the ErgoDox project.

I don't have much to say but that I think we should go through Massdrop. Nobody is stepping in to handle the GB, and dox (the closest to an authority figure, it seems) has expressed himself in favor of it.

shawn

09 Nov 2012, 00:22

Hello.

Just wanted to post and say that I'm interested in getting at least 2 ergodox keyboards. Massdrop sounds cool (trying to view the site is painful). I'll be watching this thread.

Have a good day.

-Shawn

ic07

09 Nov 2012, 01:38

Welcome gdaian :). Lol. Good luck with python, it's an amazing amount of fun :).

About the rest, FWIW, I'm good with whatever, as long as I can only get the pieces I still need when it happens :). It'd be cool to hear more discussion on case options, even though I may not need one. That's really the only thing we're missing besides organization (and bpiphany's instructions on getting the PCBs when it's time for that) (and some touch up stuff, like instructions (me and litster?) and better code documentation (coming..!)) (can't thing of anything else at the moment).

User avatar
reverkiller

09 Nov 2012, 19:36

I'm interested in buying a board.

bisl

09 Nov 2012, 22:26

I just heard back from Massdrop about their overhead. I've pasted it here in its entirety to avoid any mistakes or miscommunications I might make in trying to paraphrase.

It should be noted that I volunteered shapeways in my initial contact to them, simply because it's where the prototypes were made; nothing is committed yet and we can certainly go through some other shop for the cases if we get a plate-mount design from dox or litster. That's why he mentions them in #4, below.
massdrop wrote:Those are great questions and I'd be happy to walk through them with you. You've probably noticed that we don't have pricing on our website for running group buys. This is mostly due to the fact that there's such a huge variation in the amount of work that we need to do, so we figure out the cost on a case-by-case basis. How many calls we have to make, how many different steps/components in the group buys, and how difficult the logistics will be are all factors that come into play when figuring out the final price.

For a project like yours, the cost should be about 10% of the final price.

Keep in mind that this 10% buys you quite a bit:

1. Professional negotiations. We're really experienced at working directly with established manufacturers to get the best prices possible. Our hopes are that if the group remains as big as you said, we can help you negotiate the price even lower. Most manufacturers will only deal with incorporated businesses so using us to represent your group will ensure that you have the most options available to you.

2. Reliability. We've seen lots of group buys. One of the biggest issues with big ones is that PayPal and other payment processors are quick to freeze accounts that have sudden bursts of big activity (since they want to make sure you report it to the IRS as income). Many times it can take as long as 6 months to get your money back and the group becomes frustrated and worried. We have great relationships with Paypal, our merchant banks, and we regularly run group buys so there is no risk of any funny business happening with the groups money during the process.

3. Logistics, manpower, packaging materials, tracking numbers, updates. Our turnaround time for almost everything is about 24 hours. We've worked to build a very extensive logistics network that lets us handle big projects (i.e. group buys) in a very efficient and cost effective way. This means faster times, less mistakes, cheaper shipping (we get bulk discounts).

4. Fabrication sourcing. Right now you guys are planning on using Shapeways for the case manufacturing. Based on what we know, they have quite a high overhead and markups. We have a few ideas for alternate fabs for these cases that should be able to help lower the price quite a bit. We also have some contacts there that would be more than willing to help out.

5. Sales tax. Since we're a company registered to do business in several states, we don't have to pay sales tax for things that we plan on reselling. Unfortunately, this isn't the case for individuals who will have to pay the local sales tax on top of the price of the parts (meaning higher prices).

Hopefully this answered your question in enough detail. The reason we created Massdrop was to make it as easy as possible for groups of people to pull together and save money. Let me know if you have any other questions and we'll be more than happy to answer.

AloisiusFauxly

09 Nov 2012, 22:50

10% overhead sounds reasonable for the services they provide, especially if they can get slightly cheaper rates than a forum member on components.

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