The death of preorders?

[crighton]

Just found out chronicle collectibles chaptered 11 and took my funds from preorders with them(i know old news by now). I was reassured in July on an 2 year old order, that the items were being shipped over from China... Covid... lie lie lie... This is the 5th time that I have gone the preorder route and got burned, but the industry and bad actors have poisoned the well one to many times now. Just like with Kickstarter this cow is tired of being milked.

Now I can continue to complain, but instead I would like to have people kick around how small time creators and companies can get the funding they need to make wonderful pieces of art without asking for preorders? It seems clear that the trend of defaulting, taking the money and running is not going to stop, so what is the alternative? Reputation is not doing it because many of the larger betrayals have been with known quantizes in the community, some who still show up at events despite the conjobs they have pulled on people.

so small time creators, what do you need to both fund you and to keep you honest?

 

[Prop Collector]

Master Replicas pulled the same thing. It's too easy to declare bankruptcy and screw the little guy. If they can't deliver within the timeframe of CC chargeback, nobody should take the risk.

Personally, I will never use any kickstarting website again, but I would preorder from a reputable dealer (basically just Sideshow) that won't go under if one product fails.

 

[McFlyte]

An escrow service might be what you're after. Each party agrees to conditions and payment is held by a third party until those conditions are met.

Creators can buy materials with confidence that the buyer will pay. The buyer can make payment without the risk of the funds disappearing.

 

[belloq]

Yes, escrow might work, but it would need to become a standard practice in the entire industry so that peer/market pressure would force all licensees to use it. Paypal should offer the service and provide nondelivery protection for years (not just six months) with an automatic order cancellation/refund occurring at 18 months if not delivered. Licensees should not be in business at all if they are not properly capitalized and delivering timely product.

 

[AJK001]

Master Replicas never went the pre order route where you had to pay when you ordered. True, you did need to give them your credit card info when you ordered but you did not get charged until just before your item shipped. There were orders not filled when they went out of business but if you ordered direct from them they didn't screw you like Anovos did and still does.

 

[3Dsf]

Master Replicas never went the pre order route where you had to pay when you ordered.

The Master Replicas HAL 9000 products were done on a pre-order basis. A lot of people ended up losing their pre-order payments on that one.

 

[Starbase101]

Business Loan. Practically all banks offer them. If it's a "business" then it should be treated as such, no differently than any other business. If a maker needs funds, get a loan. Then sell the product only when it's available for purchasing.

 

[temponaut]

Master Replicas never went the pre order route where you had to pay when you ordered.

The Master Replicas HAL 9000 products were done on a pre-order basis.

Perhaps AJK001 is talking about the original Master Replicas company (MR), while nkg is talking about the second incarnation, the Master Replicas Group (MRG)?

 

[Kroenen77]

Don´t preorder direct from the company.Order only from a well known onlineshop and never pay something before your item is in stock.

Thats a complete safe way for everyone.I have no clue why people are sending Anovos,EFX or other company their money direct and before they have anything in stock.

 

[Funky]

If something comes up for pre-order, and it’s an item you desperately want, common sense and good judgment go straight out the window. If you would have done your research on these companies (MRG, CC, Anovos, Kickstarter) you would have discovered that your money may be in jeopardy. But no. You went with the “Hurry up and take my money!” mentality. Now you come here crying that you got screwed.
I have zero sympathy for you.
I don’t care how badly I want an item. I research EVERY place I’m not 100 percent sure of. If there is ANY chance I might get screwed I don’t order. Now, is there a possibility that they may actually come through and deliver? Absolutely. Then that means I missed out on my goodie. You betcha. I’d rather do without than take the risk of losing my hard earned money.

But that’s just me.

 

[AJK001]

Perhaps AJK001 is talking about the original Master Replicas company (MR), while nkg is talking about the second incarnation, the Master Replicas Group (MRG)?

Yes, I was talking about Master Replicas not Master Replicas Group which was a different company even though the same person started both of them years apart.

 

[3Dsf]

Perhaps AJK001 is talking about the original Master Replicas company (MR), while nkg is talking about the second incarnation, the Master Replicas Group (MRG)?

Ah, okay. I was referring to the more recent entity, which failed this year.

 

[Force]

This has happened in my other hobby as people had become fed up with multiple failed preorders throughout the 2012-2017 timeframe. As a result, the preorder model has shifted in the last few years and two things have changed:

1) Preorder amounts have dropped to a very nominal amount to just hold your place in line--basically 1-2% of the price of the item (amounting to something in the $25-$250 range), rather than what was once 10-30% of the full price.

2) Certain distributors are acting as middle men and holding the preorder funds in escrow. When the maker is ready to ship, the funds are released to the maker and preorder buyers are asked to pay the remaining balance.

As a result, buyers don't lose much if a project fails, and makers can't really fund their projects through preorder money. So, ideally, that incentivies them to finish the project for the payoff at the end, and/or seek alternate methods of funding that don't involve preorders (which also pressures them to finish the project).

 

[goldcylon]

This has happened in my other hobby as people had become fed up with multiple failed preorders throughout the 2012-2017 timeframe. As a result, the preorder model has shifted in the last few years and two things have changed:

1) Preorder amounts have dropped to a very nominal amount to just hold your place in line--basically 1-2% of the price of the item (amounting to something in the $25-$250 range), rather than what was once 10-30% of the full price.

2) Certain distributors are acting as middle men and holding the preorder funds in escrow. When the maker is ready to ship, the funds are released to the maker and preorder buyers are asked to pay the remaining balance.

As a result, buyers don't lose much if a project fails, and makers can't really fund their projects through preorder money. So, ideally, that incentivies them to finish the project for the payoff at the end, and/or seek alternate methods of funding that don't involve preorders (which also pressures them to finish the project).

This is more doable. I am never upfront the full amount on any preorder any more. Factory Entertainment uses this model already.