Nathan the Machinist
- I absolutely understand your mindset. Once you’re committed (taking a deposit or payment), you are to a certain degree beholden to those that have given you money. Once you’re committed, it is no longer a labor of love, it is an obligation. I think most of your customers are flexible, tolerant, and understanding related to the timing of the delivery of the product they ordered. After all, I doubt if anyone is depending on the delivery of the K20 to defend their life, liberty, or freedom. If they are, their government has probably prohibited the ownership.
Most of what you offer is a luxury item, and many of your customers have substitute products (most often made by you) that will tide them over until delivery. Granted, there is a certain anxiousness in waiting for something one has paid for that exceeds anticipation for something that may be released in the future. Your track record is exemplary; fulfillment probably isn’t a concern for most, though some may start to sweat whether you will deliver.
Looking at the upside for you, as a seller and knife maker, at a minimum pre-sales allow you to judge interest, and if working capital is limited, acquire raw materials to proceed. While I don’t know what your capital situation is (especially in light of your recent statement that a small steel order was around $50K), the other issue has seemingly become moot. You could probably offer sharpened rebar and it would sell out. That actually seems to be an enviable position in which to be.
Looking at the upside for buyers, initially the presales apparently occurred at a more leisurely pace, allowing those that couldn’t participate or succeed in the weekly sales to acquire your product. This seems to have become a thing of the past; recent presales have been as frenetic as the Friday sales. The other upside to consumers is the ability to customize their purchase as they desire, within the confines of what you offer or what they can badger you into offering.
The bottom line of the preceding verbosity: there seems to be waning upside to you to continue presales. As for the consumer, there is still a feeding frenzy, whether offered by presale or direct sale of completed product. This suggests that the supply – demand curves are misaligned, which would be the economists’ way of saying the price point is suspect. I’ll no doubt get flamed for that. Perhaps if you abandon the presale model, you can substitute an alternative method to minimize the other loss to the consumer - the ability to customize your product. Possibly, with your wisdom and input from the community, you can even develop a sales model that addresses the concern of selling out in seconds!
I’m fairly certain that none of your customer base wants to see you get burned out on making or selling knives, or get bitter about the demands placed on you by virtue of having presales. I fully support whatever path you follow to prevent this from occurring.