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PandaSPUR
356
Jun 8, 2014
Sadly increasing prices like this is just reality.
Think about it, for mass produced stuff, the manufacturer already sells in bulk to plenty of retailers. Those other retailers likely buy in quantities even larger than the minimum for the lowest price of this drop.
Group buys have never been for generating profit. Its usually one really nice person in some niche community who decides to organize it for a tiny tiny side profit, if for any profit at all. The whole point was to either get something custom created, or to avoid the price hikes by the middle man.
Massdrop is probably too big of a company to be operating on small profit margins. So unless the manufacturers give Massdrop an unusually high discount, we'll keep seeing only marginally discounted prices. Everything I've bought from Massdrop so far is usually only 10-20% cheaper than what I could find elsewhere :|
Massdrop is becoming that middleman group buys exist to avoid.
bass
154
Jun 8, 2014
PandaSPURThey are increasing the price probably due to their venture fund partners (who provide seed money for start up like MD) are giving them pressure to make more profit, so either they can pay back the loan earlier or increase the partner's equity in MD. Or MD can just decide the trial period is over and they need to start making some serious money. However, they are still dropping the balls (aka amateur mistakes) left and right. So, who is on the receiving end of "the lack of competitive pricing"? Us.
Like you said, group buy is not for profit. MD is suppose to be providing "group buy" service to its members. That means much lower than retail price and somewhat slow delivery time. However, people like us can buy directly from other vendors for the same price and way faster shipping than MD. If MD keeps running this "group buy" at retail price and slow shipping time, they won't last.
They are changing into a combination of "taobao agent" and "middle man" from the true "group buy" organizer. $$$$$.
Edit: To be fair, MD's other drops have pretty decent prices compared to retail. Whiskey balls, knives, audio related products, etc.
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