(03-30-2016, 02:08 AM)wingdo Wrote: Having looked at the Rockwell razor thread here and at other sites, I think the number one question on people's mind is this: Now that your kickstarter campaign is over why are you continuing to follow the kickstarter method of paying for a razor before production? Is there not enough funding in place to handle producing a decent number in advance, or are you not sure if the razor is going to sell and you do not want a lot of razors sitting in a warehouse? Hopefully you can answer this with some details so as to not have this question asked too often.
Thanks for the question! I definitely appreciate that this has been somewhat a “hot button topic” on DFS recently so I’m happy to explain why Rockwell and other classic shaving vendors might use reservations (or pre-orders) as a sales mechanism.
I feel there are two main benefits for customers and the business around pre-orders / reservations:
Pre-orders allow businesses to gauge demand for products, especially products that are relatively expensive to make and must be made in large batches (like the Rockwell 6S). This helps determine how much production should be scaled up or down, depending on demand, allowing young businesses to optimize inventory levels and (hopefully) continue to be able to afford to exist!
Pre-orders allow customers to indicate that they would like to be "first in line" for shipping once the product is back in stock. Customers interested in purchasing the product only once it is in stock are not at all precluded from doing so, and there is of course no penalty to customers who purchase once products are in regular stock, other than that “reservation” customers will of course have their orders shipped first.
In Rockwell’s case, I can say that the need for reservations aren’t driven as much from a cash-flow need at this point, but are mainly borne of necessity after an unexpected massive spike in demand from a recent article I wrote for VentureBeat. We’re increasing production to correct for this increased demand, but didn’t want to miss out on residual sales from the strong traffic from that article.
I’m happy to answer anything more about the pre-order / reservation model, but hopefully this helps establish a baseline, transparent understanding!
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Gareth, Co-Founder of Rockwell Razors - info@rockwellrazors.com - Toronto, Canada