Just wondered if anyone had seen this post from
@RastaBuddhaTao?
I copied it from another forum.
Hey all you RBT peeps!
Wow, the last four months are a blur... working 24/7 some nights catching 4 hours of sleep in the car, some nights just working through. Decided to move home and set-up shop in my best friend Bruce's Pizza shop basement who died a week after I moved up. His brother John took over and let me stay. In the coming days the walls where created and the electrical run and with a new coat of paint RBT was alive again.
Custom glass designs where created and sourced to a sub-par manufacture in China... plan B landed on expensive German glass that required added labor to cut and polish. In the mix the XL8R was created to add a cooling mouthpiece and a vaporizer to the RBT line-up. After struggling to make them myself do to less than professional set-up a local glass blower was hired who made more bad than good... back to RBT making them by hand. A woodworker was unable to produce the wood in a timely manner (if you don't have the volume, you will not get the attention) so wood working was completed on the first 100 Splinters by RBT in a very wasteful and inefficient manner. This was good enough to get the first 50 Splinters out to the US waitlist. Wood is now being produced by an Ace shop but it cost 5X the Chinese quote... just like the glass. But, it was the only way to make to make it happen. So, the wait list for Splinter was a painful ordeal but it is now complete. Similar added work and cost was required to get the heavy wall German glass into Mi2 but it got done and units are shipping this week.
Other work of notable mention was the new custom 510 fitting, upgrading the mouthpiece to thick glass to aid cooling and make it more robust, and the making of a proper manual and warranty card. In the end, the cost of the Splinter is way out of line with with what was planned. This gives way to a situation that selling units to retailers for 50% off of MSRP (standard deal with any retailer) RBT would loose money. So, if you make a handmade product in the US, you have to sell direct in order to keep the 50% or MSRP required by Most retailers (80% of profit margin) or you cannot survive. However, selling only direct in a niche somewhat illegal 'drug paraphernalia' market there is no sales volume. Thus, RBT is caught between a rock and a hard place.
With retailers there is volume, but no profit. With selling direct there is no volume but there is potential for profit. This is assuming that you are making something in America for 5X the cost of China goods as my quotes suggest. Basically it is a loose / loose situation as direct sales are currently in the single digits per week. So, there are two possible outcomes for RBT. One is that all of you passionate supporters help spread the word from now until 8/12 that there is a 10% sale on everything in the RBT store using the code RBTCHINA and sufficient sales happen to stay full time on RBT allowing me to have the time to work with the great China company (who made the current 510 fitting) to produce and authorized reproduction (heater installed and tested US)... or Two which is I sell the last 100 Mi2 and 100 Splinter while I exit RBT and get a real job again lol.
This has been a great learning experience of the realities of the business world from starting out with the Z-Team in 2014 on FC, through selling direct and getting kicked off of PayPal, to designing several www's and linking them to high risk banks that keep 10% of my money, to realizing that VapeFiend could sell some Splinters but that I am loosing money and creating more work for RBT with every one they sold, to now coming to the reality that even with Splinter, Mi2 and the XL8R there still is 1/25 the volume required to stay in the black. If I can survive to make one more step into cost effective manufacturing to RBT specifications I believe RBT could reach sustainability but with near zero sales this is seeming to be the end of the road.
When I started this I thought if I spend my life savings and can't make it work I have a degree from RIT and 20 year career working for the best alternative energy companies in the world... I can always go back and get a job. I have worked hard and did the best that one man could do and I left it all on the track... but the rubber is burnt, and the tires are slipping, and it looks like this is the last pit stop. Thanks to all that helped support this crazy dream and providing me the support to go all out on a crazy mid-life crisis expedition. For as much as it is a colossal failure... man that was a ripping good time.
Grass Roots Forever,
Ryan