Group Buys - Awesome or Dangerous?

13 replies
Hello Guys

So I personally think that group buys are a suitable alternative for those that cannot afford a very expensive product but by sharing the cost among friends, they can afford to get it.

What do you think of group buys?
#awesome #buys #dangerous #group
  • Profile picture of the author Zesh
    Depends if you are going to use the product or not...its good if you cant afford something but you need to share something so to speak...and conflicts can arise.
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  • Profile picture of the author Paul Myers
    Celenco,
    What do you think of group buys?
    I think that, in the vast majority of cases, it's no different than one person buying a product and pirating copies to their friends.

    Some people will say "It's one more copy than they'd have sold without them," but that kind of thinking ignores the reality of how these things work. They will almost always end up with at least one of the "group" pirating the product heavily, and often with the person whose name the order went in under asking for a refund.

    Nice scam, if you don't mind running a scam.

    It's BS, and you really don't want to promote it here.


    Paul
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  • Profile picture of the author Michael Meaney
    I really like the idea - outside the digital download industry.

    When it's something that you can copy and pass round, I agree with Paul it becomes theft.
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    • Profile picture of the author Paul Myers
      Mick,
      I really like the idea - outside the digital download industry.

      When it's something that you can copy and pass round, I agree with Paul it becomes theft.
      If it's information, it can be copied and passed around. Ask anyone whose book, DVD set, or audio recordings have been digitized and distributed by pirates.

      If you don't think people would do that much work for a book, you don't know the lengths some scumbags will go to for "rep" in the warez groups. I was once offered a PDF copy of a 500-page product that I happen to know had never been offered in any but print format.

      As far as video or audio... That isn't even drudge work. It's 30 seconds or so of set-up per media unit.


      Paul
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      • Profile picture of the author Michael Meaney
        Originally Posted by Paul Myers View Post

        Mick,If it's information, it can be copied and passed around. Ask anyone whose book, DVD set, or audio recordings have been digitized and distributed by pirates.

        If you don't think people would do that much work for a book, you don't know the lengths some scumbags will go to for "rep" in the warez groups. I was once offered a PDF copy of a 500-page product that I happen to know had never been offered in any but print format.

        As far as video or audio... That isn't even drudge work. It's 30 seconds or so of set-up per media unit.


        Paul
        I believe it Paul, never seen a group buy for small items outside the digital download arena but I have seen a group buy for a car - which is a great idea, and once knew a group of friends who bought a house.
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  • Profile picture of the author tpw
    I am with Paul.

    If you and nine of your friends get together to buy the latest Harry Potter book, only one of you gets to hold possession of the book at any one time. You all have to take turns, and only one of you ever has physical possession of the product. After all ten of you have had your pass, only one of you gets to keep the book for reading on some lonely night.

    If you and nine of your friends buy my latest and greatest digital product, then you and nine of your friends each get to hold a copy of my product in hand, and ten of you will always have possession of my product.

    Nine of you are stealing value from the product creator, without paying the product creator what was due to them, for having created that awesome thing you want to own.

    Can I borrow your car for 9 out of 10 days? How would that suit you?

    I will let each of 8 of my friends drive it one day each, and I will only drive it one day, and we will give it to you to drive on the 10th day. Is that a fair value exchange?
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  • Profile picture of the author AdwordsMogul
    Technically speaking it might be theft... no denying that.

    However, when I found a group buy for one of my products (non-IM) I was actually flattered.

    I don't really spend time hunting down pirates, and considering where I started, I can't really hold it against someone that they paid just a little for my product. Especially if that's all they could afford.
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    • Profile picture of the author Paul Myers
      considering where I started, I can't really hold it against someone that they paid just a little for my product. Especially if that's all they could afford.
      Really? Consider the following scenario:

      You have a $1000 DVD product with printed workbooks. 20 people kick in $50 each, and the "organizer" orders the product and makes digital copies which they send to each "member."

      Two of the "members" post your product on warez sites. The "organizer" demands a refund, and keeps a $950 profit. You've got that refund (or chargeback, if they're not so polite) on your account, and some thief just made $950 for helping his friends cut into your market.

      Then, when you can't keep the product off the offshore warez sites, you have customers claiming you're a fraud because you aren't "smart enough" to keep control of your own goods. Or a scammer, because you're "overcharging" for it, since they can get it for $29 from some kid in Hong Kong or Singapore.

      Still feel charitable toward them?

      That's how it ends up working, more often than not.


      Paul
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  • Profile picture of the author Paul Myers
    By the way... To consider Bill's example...

    When JK Rowlings refused to allow digital distribution of the Harry Potter books, at least one (and I believe all) made it to the warez sites, along with more mainstream sites.

    If I recall correctly, one of them hit the net before the print copies were released.


    Paul
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    • Profile picture of the author tpw
      Originally Posted by Paul Myers View Post

      By the way... To consider Bill's example...

      When JK Rowlings refused to allow digital distribution of the Harry Potter books, at least one (and I believe all) made it to the warez sites, along with more mainstream sites.

      If I recall correctly, one of them hit the net before the print copies were released.


      Paul

      LOL You mean my wife could have got them all for free?!? :p

      But then again, the people in my house value the creators of the intellectual properties we consume...

      We have all of JK Rowlings books in Hardback, and we have bought at least two copies of many of the DVDs (since discs get scratched and worn out -- we have children after all), and the wife and kids never pass up an opportunity to see it at the theater...
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  • Profile picture of the author theemperor
    It is probably a great idea where the cost of entry is high and it is feasible to share the product. Obviously with the proviso that the product seller allows this.

    For example a holiday appartment, office space, a car. In the IM world some theme websites would allow you to share a platinum membership. E.g. I buy the membership then refer the rights to use the themes on your own sites to other members of the group.

    Plently of legal ways to do this.

    Obviously group buying (and multiple usage of) a single Microsoft Windows License would be illegal so I assume you don't mean that kind of thing.
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  • Profile picture of the author BrianMcLeod
    The audio software industry (such as it is) does a pretty good job coordinating group buys between popular web communities and publishers.

    There's some fairly regular group buy / bundle deals from Mac enthusiast sites too.

    A discount is negotiated with the publisher(s) for the community, and a special promotion is run allowing lots of folks to jump in and get the software they want for a great price.

    The publisher(s) get(s) a nice burst of guaranteed sales in a controlled environment.

    And everyone gets a legitimately licensed copy of the software.

    THAT'S a group buy... everyone wins.

    The BS where a group of buyers pool their money to buy ONE copy and then share it amongst the group is flat out stealing from the publisher.
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  • Profile picture of the author Paul Myers
    Mick,

    I have friends in Chicago who did that with a car. They made it work. I can't see any problem with that idea. Takes real adults, though. Otherwise, you'd be looking at a mess.


    Paul
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