Formula to save on stocks (cost and production) - Café Leather

Hello!

After the bridge on October 12, the Café Leather brand launched a new way of acquiring its products and cutting investment in stocks. All of this was presented as a collaborative Crowdfunding project: Café_Lab.

The project consists of involving the client in the production process. In short, what they do is decorate the increasingly popular pre-order concept.

On the project website you can find the products, they are renewed every four weeks. Each product has two prices:

1. Price with 20% for "buying" in pre-order.

2. Full price once the product enters the collection.

In parts, I indicate buy, with quotes, because the client may invest in this product but if more people do not, in theory, this product will not succeed. The company indicates that if the production does not go out, the money will be returned.

In the event that it comes out, you will have saved 20% but you will have waited a month. At this point I was curious about the extent to which each client participates in the production cycle, it is in this transparency and in this generated "hype" that lies in how much you pay for waiting that month.

I understand that the smart thing about this is that the brand does not assume the total cost of purchasing the stock, since if they see that a product is popular they have two things gained:

1. Higher probability of product success.

2. Part of the stock - financed.

The only complication that may exist, and on which costs should be balanced, is the ability to negotiate with suppliers, taking into account the units produced. In the case of small companies, this does not appear to be a challenge.

Finally, and drawing a conclusion, the reality is that if the format is not valid for a large company, it is that the solution is effectively not valid.