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I do believe there is demand for a product like this one, but the pricing and the way it is presented in this drop is not quite right. It needs to be marketed more towards enthusiasts for starters. You would do that by splitting the buy into different parts i.e. case, PCB, and keycaps.
There also needed to be more community involvement in the color selection. If Varmilo is not willing to negotiate with the Massdrop Buyer with regards to these options, then Varmilo's products clearly do not belong on Massdrop. The buyer needs to leverage Massdrop's great platform to get a deal done with the supplier that benefits the community, MD, and the supplier (Varmilo). If they still refuse, similar products can be obtained from another source. If I were hired as a buyer for Massdrop I would definitely do that. (Hint: I applied.)
I think this drop was very important because it attempted to introduced the community here to the high end aluminum builds that are popular on enthusiast forums. I'm afraid some people may have been turned off by this buy, but by the same token, I still believe some customers here (myself included) would be willing to make the jump if the products were presented as I described.