but is not in such high demand that sustained production can be justified
Well, I don’t think so. When we speak economically, demand of luxury goods is’nt “there” beforehand, it is generated, and how high it is depends to a good degree how many people you’re reaching with your marketing. We need keycaps as much as jewelry hanging around our necks, it’s about appetite which has to be be roused. First you need to reach many people. For example it would be sensible, if the admins allowed Groupbuys to get an icon on the main page of geekhack.org. Then you have to make a good ad (photos, prototypes, explanations why someone should buy it). And then demand gets sky high. Not the other way around.
i'm not sure i agree with there not/never being demand beforehand. when this group-buy was starting up, i was looking for a set for my ergodox. i think supply and demand can be flipped around. just like how invention can be the mother of necessity
however, if you're starting with little to no demand, and not even a physical prototype, i would think most companies would consider it very risky to start up full production. with the group-buy model here, they can set minimum amounts to insure they at least break even, they can KNOW how much to produce, and they dont really have spend anything on advertising (we're doing it for them). this seems very low risk to me.
even seems like a group buy could serve as advertising: everyone loves posting/seeing pictures of our toys.
it just seems to me like a group-buy could be a good way to start making something that could move into full time production/advertisement later.