Crowdfunding Hits, Misses, and Lessons Learned

Back in November 2020, I wrote about some considerations and dramatics around crowdfunding campaigns. In this post, I’ll give you my top five and bottom five crowdfunding efforts, and maybe a lesson or two to take to the future.

This post has been sitting in my draft folder for a year now, but nothing has changed in it other than the recent time references, which I’ve left as they were in November 2020. I’ll come back with photos later, rather than putting this post off another year.

It was the best of times

My first crowdfunding campaign was the LunaTik and TikTok wrist cases for Apple’s 6th generation iPod Nano (the square one). MINIMAL Design came out with the first huge campaign in 2010, with over $942,000 in backers and a super high quality product that was delivered reasonably. My red LunaTik still sits on my desk, with a functional PRODUCT(RED) Nano in it, and a couple of years ago Scott Wilson, the founder of MINIMAL, mentioned that Apple had used his band/case as part of the prototype design and testing for the original Apple Watch. The watch has come a long way, but the product is still beautiful and functional ten years later. And they’ve come out with more products for the real Apple Watch since then.

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When your corporate message is 15 years too late

This is a fun little gripe, not a particularly deep reflection on anything.

I recently dug back into my email to find the following gem:

As you can see, I’m coming up on 15 years (at least) as a customer of Woot!, the daily deal and “bag o’ crap” seller of geek fame. I’ve been a customer long enough to remember moofi, and I’m pretty sure I remember them having just one deal a day.

Well, Amazon acquired Woot! in 2010, and it’s kinda folded in nicely since then. You can log in and pay with Amazon, and Amazon Prime shoppers get Prime shipping and occasional benefits (like a $5 discount on the already marked down Woot! version of this 100-pack of Peets Nespresso-compatible capsules, which are $62 on Amazon but $39 on a recent day’s Woot! deals).

But somehow the marketing email side of Amazon doesn’t realize they have customers who are already customers of Woot!, because 40 times since 2014 (most of them in the last year), they’ve sent me an invitation to join Woot!.

Now before the Amazon login integration, I could understand it. After all, my Woot and Amazon accounts are under different email addresses, in part because when I started shopping with Amazon in 1999, Gmail didn’t exist.

Darn, I don’t need that Solaris 2.6 guide anymore, and the return window has closed.

Anyway, it’s things like this, and getting ads in my mobile games for other games I already have (even the game I found that mobile game through), that make me feel that AI isn’t quite all it’s feared to be just yet.

And I’m a bit disappointed that they haven’t offered me a new customer promo code in each of those 40 emails. That would be a LOT of deeply discounted coffee capsules and cast iron grill accessories, and maybe, just maybe, my first-ever Bag O Crap.

Where do we go from here?

Well, a new Woot email just came in, so I’m going to go look at what I don’t need from this week’s deals.

Fry’s Electronics is dead

How’s that for a spoiler of a headline?

After a day or two of rumors, a Bay Area TV news report last night confirmed that Fry’s Electronics, a mainstay of Silicon Valley electronics sourcing and more for almost 40 years, would cease operations today, February 24, 2021.

History of Silicon Valley Indeed: Is Fry’s Electronics Dying? | rsts11

Revisiting Fry’s Electronics a year later | rsts11

Fry’s confirmed this on their website early on Wednesday, February 24.

Many locals have seen the stores dry up, but there were still some goods they were useful for; I myself bought a few flash drives and SSDs for mining rigs and appliance builds earlier this months.

I’ve seen a few outlets declare that Fry’s fell to the pandemic, but people who’ve paid attention know this was not the core cause. The stores failed to adjust to competition, both local and online, over the past decade. Despite being the prime source of technology in the Bay Area for decades, they didn’t really keep up with the tech, internally or in the competitive environment.

The cascade through the consignment transition and then through the pandemic didn’t help, but there was a lot more going on long before COVID-19. A couple of friends joked that if they’d just sold toilet paper last year at this time, they would’ve been even more rich and weathered the storm, but like the failure to capitalize on the last two Black Friday sales opportunities, they missed the boat on perma-work-from-home.

Ironically, Micro Center, who are doing well in other parts of the country, failed in Silicon Valley around the turn of the century for similar reasons to Frys’s – failure to compete with what was at the time a very unique retail environment in the Bay Area. In today’s market, they might be able to make a comeback if they can find an affordable location (maybe the Fry’s building in Sunnyvale could be refitted with some windows and fewer ceiling leaks?).

For now, Silicon Valley denizens will have a choice of national websites like Amazon, Newegg, Zones, and the like; the local Best Buy stores; and Silicon Valley’s “other” local computer store, Central Computers (founded in Sunnyvale decades ago like Fry’s). For electric and electronic components, we still have options like Anchor Electronics (also a South Bay staple for around 40 years) and Excess Solutions (which has adjusted and expanded three times in the last 20 years or so).

For the past year or two, a trip to Fry’s for me has been an exercise in controlled disappointment, similar to vintage computer and car aficionados who might drive past the building where their favorite was invented, designed, built. Even more than before, I’d likely leave with nothing purchased, and the 64 empty registers would remain silent. Now they’ll be silent forever.

Revisiting Fry’s Electronics a year later

A little over a year ago, I wrote about the decline of Fry’s Electronics. I have to admit that I didn’t expect the pandemic and its related impact, but I didn’t expect Fry’s to continue on its steady coasting path.

I figured they would either rebound over the holidays or fade into history. As you may recall from the updates, they did not make any visible advances over the holidays, dropping the ball on Black Friday/Cyber Monday, but they didn’t disappear altogether.

This weekend I went back to the Sunnyvale Fry’s store, the one I’ve probably been to more than any other. I think this was the first time at least since February, if not before, that I’ve been to a Fry’s store.

I was a bit surprised.

Fry’s Sunnyvale parking lot, November 1, 2020

The shopping cart corrals were empty, but the parking lot had a couple dozen cars. When I walked in, there were a few people around, and I saw a couple of employees. One was working in the repair shop, and two were behind the register counters where one register was open. There was no register line.

Motherboard display, Fry’s Sunnyvale, November 1, 2020

As I made my way to the flash memory section looking for some MicroSDXC cards for my new Jetson Nano development kit, I was surprised to find the motherboard display disassembled altogether. Last time I was there, they had one motherboard in stock, with five pieces on the shelves that used to be here. This time, I saw absolutely no motherboards.

They did have a modest assortment of SD/MicroSD cards, some even priced on the shelf, and a couple of adapters for reading them on PCs. I believe there was one brand name card, a 64GB Samsung EVO of some sort, and a lot of fringe brands (including the Hyundai cards which actually work pretty well).

Computer component station

The stations where you would normally go to talk to a sales associate or get an invoice and/or price match were marked for social distancing, and abandoned. I saw this in components, computers/printers/monitors, and the television section. I will admit I’d feel guilty price-matching at this point, but it seems like it would be a challenge to get help if you needed it. The only employees I saw were re-shelving things near what used to be the computer section.

I didn’t get photos of a lot of the store. There was one desktop and a couple of semi-offbrand laptops in the computer section (on the former Apple islands), and the remainder of the computer display was limited to a couple of monitors and a few open box PC cases (moved from the far end of the store apparently). Car Electronics has been pretty much decimated, along with the bedding and exercise gear displays.

3D printer filament display

A couple of positive surprises were visible though. There was a healthy display of printer filament for your 3D printing needs (pictured above). I’ve bought almost all of my filament from Central Computer, but I would consider trying some of the colors from eSUN here before ordering online.

I also found the “maker” / Raspberry Pi accessory section, also in the aisles where electronic components used to be (and some still are). There was an abundant selection of cheap 120 and 240 gigabyte SSDs, for prices similar to what I’ve paid for used drives on eBay, so I may go back for some of those when my next Rabbit door comes in. It looked like memory and CPUs were in short supply, but there were reasonable (think Best Buy level) stocks of USB flash drives and SD cards.

The one thing Fry’s seems to have outdone themselves on is personal protective equipment (PPE). The front aisle adjacent to the checkout line was half PPE (several varieties of hand sanitizer, including gallon jugs, as well as masks and protective clothing). So if I run out of what I’ve picked up at Marshalls or TJ Maxx, I could probably stock up here.

Where do we go from here?

It’s hard to tell whether Fry’s will improve their rather stagnant effort to convert to consignment models with their vendors. A few stores (including Palo Alto and Anaheim, as well as one in Georgia) have closed, and it looks like the others haven’t improved much in the past year (based on my observation and some social media posts friends have shared with me from other stores).

At this point, for some limited categories, they are a viable option. With the stores being rearranged, you may have trouble finding a “Fry’s Advisor” or the new location for the products you’re looking for, but they have improved on a couple of categories.

I’ll keep you posted on what I hear – watch for updates here if they happen.

See last year’s Fry’s post here — History of Silicon Valley Indeed; is Fry’s Electronics Dying?

And pour one out for Billy, the Fry’s Electronics social media guy. He takes a lot of flak from people wanting to rag on the store, but stays coherent and professional through it all.

When is a crowdfunding project a scam, vs a normal project run by humans?

There’s a new wave of crowdfunding efforts in the last year or so, changing the dynamic in a sense. There are some reasons to be concerned about pitfalls in your crowdfunding adventure, but other reasons not to be.

Let’s take a look.

Disclosure: While I have backed over 90 crowdfunded projects across platforms (not including projects that did not “finish” and thus took none of my money) in the past 10 years, and I have had professional relationships with two of the companies mentioned here (VAVA and ZMI), nothing in this post has been reviewed or approved or otherwise influenced by them or any other company or entity. For the crowdfunding projects, they took my money like everyone else’s, and delivered the products like everyone else’s.

A not-so-brief history of crowdfunding

It used to be that a designer or developer or artist would come up with an idea they couldn’t get commercially adopted, post a crowd-funded campaign on Indiegogo or Kickstarter, and hope to make enough money to produce it on their own. This led to some amazing projects and companies.

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