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A comment on CrunchPad Federal Lawsuit Filed; Some Additional Thoughts. Parent comment

Re:CrunchPad Federal Lawsuit Filed; Some Additional Thoughts by gvb on Friday December 11, 2009 @09:27AM (#989708)
They have at least one (as shown on the FG video). They probably have 10s or 100s built as a pre-production run (used to proof out the manufacturing process, given to developers to finish the coding and testing). I'm sure they don't have production quantities.

The pre-sale is to get enough cash in hand to pay the manufacturing outfit enough to do a production run in order to fulfill the pre-sale orders. If you send money to FG for a pre-sale, you are gambling that they will use your money to actually make a device and deliver it to you.

That is Arrington's warning in point 5, and it is a valid warning. Even if they don't use the pre-sale money to hire lawyers, there is no guarantee they will get enough money to do a production run, there is no guarantee they won't take your money and disappear.

Pre-sales is based on trust (buyer) and reputation (seller), not goods already manufactured.

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Re:CrunchPad Federal Lawsuit Filed; Some Additional Thoughts by ErrantX on Friday December 11, 2009 @09:45AM (#989744)
Possibly, but that's not the only way forward.

The emails talk about shareholder investment; if that is the case they can pre-sale while they are building the first batch on investor money. This way they get a share of the Xmas market rather than launching in the January sales (always a bad move).

With all that said nothing about DG has shouted "marketing sense" :)

We sell units like that.

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