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Posts: 764 | Thanked: 2,888 times | Joined on Jun 2014
#48
Originally Posted by chenliangchen View Post
The most importantly, who's going to pay for the upfront cost? Including all the certification etc. If on average, a device costs £200 (You really don't want another mid-low end device do you?) and quantity is 5k (ODM wouldn't really be interested to spend time and effort for quantity less than this, also considering certification etc lower the number isn't cost effective. ) So that's about 1M of upfront cost, who can pay that? And how to make sure that those device can be sold? How to prove to customers or Dave999 that this is not a scam?
Well, there's always crowdfunding... I actually think it wouldn't be such a bad idea. Just show that the company has a good history and is able to produce those devices with or without the crowdfunders' money. Explain that the reason for the upfront crowdfunding payment is that it only makes sense to produce from 5k devices onwards, otherwise you would run at a loss. No endless options, just 'this is what you get, if you don't want it, don't fund it'. No 'if we reach this goal, you get this extra'. Of course, if certain options like device colour wouldn't affect the production costs, they can be included. And naturally, an 'unsuccessful crowdfunding = money back' guarantee, but I think with the necessary publicity this could attract the critical mass required for success.
 

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