Would you buy a Pandora on a monthly pay scheme?

[Wally]

Not a good idea at all.


Do you really want to spend a small fortune on a company to manage this scheme specifically world wide.


Time to trash this idea before its too late.

 

[EvilDragon]

I actually checked this out a while back, but from what I found out, most agencies won't do that (because the risk is high that they lose the money if the customer runs out of money) or only for a WAY higher price in the end (to have an insurance).


At least, that's like it was in Germany.


Not really worth it.

 

[aatu]

Just wanted to chime in:


This idea COULD work, but only if you can offset the risk of missed payments wholly to the service provider (the payment collector), and still stay within the margins. Meaning you get a full payment (minus the service fee) straight away from the service provider, and the service provider takes care of collecting the payments.


For example:


Customer wants to buy a Pandora for a total cost of 500€


Service provider (SP) pays 450€ to OP immediately (if SP deems the customer eligible, that is)


OpenPandora (OP) sends Pandora to either SP or directly to customer (*)


Customer pays a 200€ downpayment to SP


Customer also makes monthly payments of 25€ to SP (for 12 months, so 300€ in total)


(*): after this point, OP will only be involved with warranty, repair and refund issues, and always directly with customer


If at any point the customer misses a payment, it's 100% SP's burden to get it. OP is already out of the picture. It's also crucial that the SP always pays first. This guarantees that even if the SP for some reason goes bust, OP is still on the clear. And I think we can all agree that OP's past endeavors are enough proof that we can't afford to risk any further. And if you can't get the SP to make this kind of deal, then you quite simply shouldn't go forward with this idea.


I know this is kind of a pipe dream, and that OP isn't in a position to make these kind of demands. But keep in mind, it was precisely the reason we are in this mess right now.

 

[Nintendo]

It's way too complex. Not worth it.

 

[Grench]

Oh I'd certainly look to using an agency to do this, the same types who do mobile phone contacts.


They don't take you on unless you have a good credit history.

People with good credit history won't need you to front them - they already have easy access to credit, or more likely still, would have the cash on hand.


Mobile phone contracts are considerably different. Generally you pay a high percentage of the seller's cost up front - and pay enough in monthly service for the first 2-6 months to cover the rest of it. Yes, that money is for 'service' - but the incremental cost of servicing one more line is negligible. Plus, if a person misses payments on a mobile phone - it gets shut off and their friends all find out what a cheap bastard they are. Most people anymore would do without heat and lights before giving up their phone. I've met quite a few homeless people - most of them have a mobile phone. That makes the money that they're fronting on the phones for signing a contract a relatively safe proposition.


You don't have a service attached to the device that you can cut off when they miss their payments. Many of these customers are overseas - and essentially untouchable.


Bad idea - get back to designing a 'device III' instead. I expect it to be in my hand by January 1, 2014.

 

[quartercast]

Why not have a lay-by system, ppl reserve a pandora and pay by installment until theyve paid the full value, then ship the order.

 

[laserbeams]

Don't offer this.


I realise credit cards are not as common in Europe as they are in North America (probably for a good reason), but I don't see a good reason for a small outfit with no financial leverage such as OP to offer that as a native service. Let people get their own credit cards, and assume the risk themselves. If a credit union or a bank wouldn't give one of your customers credit, you probably shouldn't either.


To answer the question: I would buy a Pandora on a monthly scheme, but I'd do it through my own means.


Layaway (pay a bit up front to order, pay the remainder to have the device shipped once it's ready) sounds considerably more safe.

 

[Nintendo]

Why not have a lay-by system, ppl reserve a pandora and pay by installment until theyve paid the full value, then ship the order.

A few people have already mentioned a lay-away system, which is the American equivalent to our lay-by system here in Australia.

 

[the_marshal]

I don't it is worth offering this. You would obviously have to go through a 3rd party and the rate would be high. Also you are shipping Pandora all arround the word. Already offering this for a few country might be quite a hassle dealing with the company.


At the end of the day the volume of the Pandora is just not enough IMO. I doubt there are that many people interested, and the one that are intersted might not be credit worthy.

 

[Caine]

No, I would never buy one on a monthly pay scheme. Such schemes just drive up to total amount spent on the device. If I can't afford something out of my pocket then I don't buy it. A house is about the only exception.

 

[Exophase]

No.

 

[may88]

edit: 2nd post today from the pandora on sz5a using midori that has been reversed. start reading from the bottom.


tricky!


Anyone else is likely not to have a good credit rating.


I'd tend to avoid using a credit card as the interest rate are so high, so there might be a chance to compete against this.


The price point of the pandora seems to be moving in the wrong way so maybe there is a need to give some people an option to buy one.


just trying to think who would take up this offer.


I commend Criag for another business idea.