Is a 'Buying Group' a realistic proposition?

John57

Well-Known Member
Sep 29, 2015
237
39
260
Melbourne, Australia
Hi All

I'm looking for ideas and if possible experiences of buying groups, in this case for the specific purpose of sharing great gear.

Something like this perhaps:

1. Ten people put in say USD$5K or at a higher level $10K
2. From an agreed list the monies are used to purchase from the list.
3. Each co-owner gets 4-6 weeks with the unit maybe twice a year
4. Transport/insurance to the next person is at your cost.
5. After everyone has had two turn's the items are auctioned first in the group and then outside if there are no takers...

In this way you get to try a series of units you may not otherwise be able to do so.

I could see segment groups say DACS or Speakers etc., perhaps as well as brand or whole of system groups...

Does anyone have any experience whether this idea is feasible?

Best wishes
Dr John
 

Steve Williams

Site Founder, Site Owner, Administrator
Hi All

I'm looking for ideas and if possible experiences of buying groups, in this case for the specific purpose of sharing great gear.

Something like this perhaps:

1. Ten people put in say USD$5K or at a higher level $10K
2. From an agreed list the monies are used to purchase from the list.
3. Each co-owner gets 4-6 weeks with the unit maybe twice a year
4. Transport/insurance to the next person is at your cost.
5. After everyone has had two turn's the items are auctioned first in the group and then outside if there are no takers...

In this way you get to try a series of units you may not otherwise be able to do so.

I could see segment groups say DACS or Speakers etc., perhaps as well as brand or whole of system groups...

Does anyone have any experience whether this idea is feasible?

Best wishes
Dr John

you might want to speak to ddk as I know he had something similar when he lived in Thailand
 

ddk

Well-Known Member
May 18, 2013
6,261
4,040
995
Utah
Hi John,

I have experience with this kind of thing going back to the 90's, a different time and very different circumstances. I can't speak to specifics not knowing your location and membership but there are basic fundamentals that apply. To start off with unless you're looking at low budget equipment $50-$100k isn't going to get you in the game, it didn't even back then. Your distribution model is also wrong, 4-6 weeks twice per member that's two years and then you want to auction off a two year old piece of gear that's changed hands 20 times and shipped 40 times? What's it going to be worth assuming that nothing has gone wrong with it during that time? You'll run through your money before you blink.

You must approach this like any other business it needs to be properly capitalized and have revenue to sustain itself; you're responsible for people's money and can't lose it in a couple of deals. Have a game plan and if you're going directly to manufacturers be aware that there are regional distributors that you either need to work with or get around. You can't expect people to wait up to a year to get their hands on a piece of gear either. Careful with your membership it's easy to get people to join but they can become difficult if they're not happy and want out. Don't forget the club aspect, membership should have it's advantages and be fun!

Good luck!

david
 

John57

Well-Known Member
Sep 29, 2015
237
39
260
Melbourne, Australia
Hi John,

I have experience with this kind of thing going back to the 90's, a different time and very different circumstances. I can't speak to specifics not knowing your location and membership but there are basic fundamentals that apply. To start off with unless you're looking at low budget equipment $50-$100k isn't going to get you in the game, it didn't even back then. Your distribution model is also wrong, 4-6 weeks twice per member that's two years and then you want to auction off a two year old piece of gear that's changed hands 20 times and shipped 40 times? What's it going to be worth assuming that nothing has gone wrong with it during that time? You'll run through your money before you blink.

You must approach this like any other business it needs to be properly capitalized and have revenue to sustain itself; you're responsible for people's money and can't lose it in a couple of deals. Have a game plan and if you're going directly to manufacturers be aware that there are regional distributors that you either need to work with or get around. You can't expect people to wait up to a year to get their hands on a piece of gear either. Careful with your membership it's easy to get people to join but they can become difficult if they're not happy and want out. Don't forget the club aspect, membership should have it's advantages and be fun!

Good luck!

david

Thanks David.
 

treitz3

Super Moderator
Staff member
Dec 25, 2011
5,459
961
1,290
The tube lair in beautiful Rock Hill, SC
We have done this before but with something that the owners would always have part time ownership in. It was for a Furutech LP flattener. Each owner would get it twice a year for the rest of their lives and a group vote would have to made by all owners to add anybody else to the owner's list (paid in, of course). There are no plans to sell it, never were.

Same thing with the shipping, insurance. The owner that currently has possession of the unit pays these fees when forwarding the unit to the next owner in line.

Only long standing members were considered for the buy in.

Tom
 

John57

Well-Known Member
Sep 29, 2015
237
39
260
Melbourne, Australia
We have done this before but with something that the owners would always have part time ownership in. It was for a Furutech LP flattener. Each owner would get it twice a year for the rest of their lives and a group vote would have to made by all owners to add anybody else to the owner's list (paid in, of course). There are no plans to sell it, never were.

Same thing with the shipping, insurance. The owner that currently has possession of the unit pays these fees when forwarding the unit to the next owner in line.

Only long standing members were considered for the buy in.

Tom

How long did it last? How was it closed? A load of ways this can go off the rails. Thanks mate.
 

treitz3

Super Moderator
Staff member
Dec 25, 2011
5,459
961
1,290
The tube lair in beautiful Rock Hill, SC
AFAIK, it is still going strong. I was offered an ownership spot but foolishly, I declined the offer at the time. This was about 6 or 7 years ago, if memory serves me correctly. Since then my LP collection has tripled and I could slap myself for not taking them up on the offer. No hiccups within the first 4 years, I stopped paying attention after that.

The ownership will never close. If no one needs it, then it just stays at the house it is currently at. When the next person has a need for it again, they are the first on the list again. When they first started, the rotation was pretty steady between the owners but as everybody corrected all of their warped LP's, the need to transfer slowed down. Now it is only shipped when needed.

Tom
 

MtnHam

Industry Expert
Jan 12, 2014
275
50
335
Nothern California Wine Country
Hi All

I'm looking for ideas and if possible experiences of buying groups, in this case for the specific purpose of sharing great gear.

Something like this perhaps:

1. Ten people put in say USD$5K or at a higher level $10K
2. From an agreed list the monies are used to purchase from the list.
3. Each co-owner gets 4-6 weeks with the unit maybe twice a year
4. Transport/insurance to the next person is at your cost.
5. After everyone has had two turn's the items are auctioned first in the group and then outside if there are no takers...

In this way you get to try a series of units you may not otherwise be able to do so.

I could see segment groups say DACS or Speakers etc., perhaps as well as brand or whole of system groups...

Does anyone have any experience whether this idea is feasible?

Best wishes
Dr John

This really seems to be about an owner's group, not a buyer's group. A buyer's group traditionally has been for the purpose of negotiating the purchase price of a quantity of a particular product from one manufacturer. In the case of a LP flattener, this might make sense, as the group could share one device only needed occasionally.. Otherwise, I don't think so. Too many issues.
 

John57

Well-Known Member
Sep 29, 2015
237
39
260
Melbourne, Australia
This really seems to be about an owner's group, not a buyer's group. A buyer's group traditionally has been for the purpose of negotiating the purchase price of a quantity of a particular product from one manufacturer. In the case of a LP flattener, this might make sense, as the group could share one device only needed occasionally.. Otherwise, I don't think so. Too many issues.

Yes good point. It is an Ownership Group concept. Ideally too it could be a try before you buy group. Something nearly impossible with high end gear...a dealership based on customers as members. Pay to enter. No minimum spend. Incentives given to those who do spend...One result I predict in this model is potentially a big increase in market discussions of products. So greater product profiles...obvious challenges in this model are to serve Hi End customers with Hi End products. If you own a TotalDac would you like to try a Trinity? I'd love to try a Soulution 5 series Amp...
 

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