Just saw a note on FB that Mya-Moe has gone to a lottery system to get onto its build list. Apparently, they have slipped to fourteen months, and rather than raise prices or expand to a bigger operation, they have elected to limit new orders this way.
Nice problem to have but taking on one more builder like they did with Aaron a while ago would make more sense. They make a nice product but so do other builders. If you are not willing to expand due to demand you will suffer the consequences. Business is business be it nuts and bolts or instuments. I wish them all the best and I hope this works out for them and their customers. It will either create more demand or drive people away.
The demand for quality instruments cannot be over estimated, apparently. I guess the lottery is another alternative to 1) raising prices, 2) increasing the wait list, or 3) adding capacity. I don't think it would easy to add capacity, after watching their "Birth of a Mya-moe". Adding another luthier (or two) and building more space would change their process and their product. That could be a real problem, at least in the short term. Plus the expansion would be a distraction from normal instrument building. I learned in Econ 101 if demand outpaces supply, raising prices should reduce demand and give them a shorter wait list. Or they could just close the wait list until it is short enough.
But the lottery is an interesting approach to manage their wait list. It's kind of like a random wait list for their wait list.
I feel as though this is a sort of band-aid for the problem at hand... I like that Gordon doesn't want to recede from the front lines and become a guy who looks over his employees' shoulders, but at the same time, this only seems to draw out the problem longer until it gets worse. I agree with adding expert staff, especially because problems are bound to happen in any direction one takes. I bet Gordon, Char, and Aaron had a few hiccups they had to sort through when Aaron first started, so why not attempt the same now?
Besides, not all change is bad, right? Who knows? Maybe the changes from adding a new luthier (or two) may better the quality of future instruments...
I think this is probably the best solution given the limitations. One thing I respect is that Gordon and Char want to keep their hands on the build process rather than becoming shop managers. This is really a labor of love for them and not just a business. They want Mya Moe ukes to continue to be their own creations. And I like the egalitarian aspect of their decision to not raise prices. They actually add value to the instrument by reining in access to them, but do it in a fair way to everyone. I'd hate for their work to be going only to the more wealthy players.
By entering a lottery there's a chance that you may never get picked. That would be really sad for the potential buyer. I'm glad I got my orders in already before the change. If I want another one however I don't know if I could wait that long...
True, but your odds get better the longer you're in (if you reenter every month). But I find it hard to believe prices won't go up if demand is that high. Witness recent Moore Bettah sales.
Nice problem to have but taking on one more builder like they did with Aaron a while ago would make more sense. They make a nice product but so do other builders. If you are not willing to expand due to demand you will suffer the consequences. Business is business be it nuts and bolts or instuments. I wish them all the best and I hope this works out for them and their customers. It will either create more demand or drive people away.
What do you think are the consequences of not expanding to demand that Mya-Moe will suffer? If they were in it for the money they could just double their prices.
My guess is that Mya-Moe is happy with its current income stream and doesn't feel like it has to build any more instruments in a year than it's already building. The lottery system changes whose ukuleles get built, but it won't, by itself, reduce the number of ukuleles Mya-Moe makes in a year. I applaud Mya-Moe for not choosing to regulate demand by raising prices. For what it's worth, the new lottery system may be great news for people who already own Mya-Moes and are thinking about selling them. People who might be willing to wait 14 months for a firm build date but who might not like the uncertainty of not knowing whether they're even going to get a build date may look to the secondary market for a Mya-Moe.
. People who might be willing to wait 14 months for a firm build date but who might not like the uncertainty of not knowing whether they're even going to get a build date may look to the secondary market for a Mya-Moe.
I agree that resale prices may rise. People may be willing to pay as much or more for a "sure thing" used Mya-Moe as they would have to pay for a new one, but it's hard for me to believe that either (a) the price of a used Mya-Moe would exceed that of a new Mya-Moe by that much or (b) Mya-Moe will raise prices simply because it can. My sense is that although there's a crazy secondary market for Moore Bettahs, if Chuck has raised his prices for new MBs, he has done so to reflects the amount of work that he has put into the instrument, not because he can in light of secondary market prices
I don't get how it works. For anyone ordering a new instrument, they might get a build slot in fourteen months...or next month? Or they may not get a build slot at all?
My takeaway from the video is that a lottery winner gets the next available build slot, which he or she would have to secure with a down payment, and then waits for however long the wait time is from deposit time to build time (currently 14 months). I think the lottery is a prerequisite to the right to make a deposit (which, untilnow, anyone could do simply by going to the website), and after a person obtains the right to make a deposit through the lottery, everything else concerning wait times is as it was before the lottery system was put in place. One question not answered by the website is how frequently lottery slots will be awarded and how many will be awarded at a time.
That's just my understanding, though. I could be wrong.
"Since each ukulele takes a long time to make, and since we hand make every one, our production is very low while the demand is overwhelming. Originally, we kept a wait list, but the list got unbearably long. We decided to transform our ordering method in an effort to make a fair process that both honors people who have been waiting for a long time, while giving newer people a shot. We appreciate your support over the years."
Huh? What? A wait list with a customer choosing to order or not to order based on build date (the old method) is less fair than a lottery, where one never knows if they will ever get an instrument (the new system)?
So, yep,as Eric and Jon read into it, it specifically says, "We cannot guarantee that everyone on the list will be able to order an instrument." Huh? How is this fair?
They go on to ask that, outside and in addition to their online ordering system, a customer is to send them an email to get a lottery number. And they can do so every thirty days. HUH?
Shucks, and I just had to give up a build slot to keep the wife happy.
Good thing I have a preloved Mya tenor bought at a great price.
I'm just wondering why can't the wait just be extended for those who are willing to wait. Gordon has a lottery for earlier build dates anyway, for those who want to try their luck.
I totally agree. I don't get it at all. It seems like a terribly bad business decision and PR decision. Utterly unfair. But then I aint no businessman. Proof will be in the pudding.
Yeah. There's a lot of people that are going to feel stiffed--in a big way. If you're willing to wait, it shouldn't matter how long the list is. Shouldn't matter to them either. They would be turning out the same number of instruments either way. I would make the initial deposit non-refundable (if it already isn't), to ensure the customer is serious and wants to wait. To me, this would pretty much keep business, well, ad infinitum, if you know what I mean.
I waited five years on my custom build from KoAloha. I knew what I was getting into when I ordered it. Didn't know there would be a surprise ending (a whole other story).
What if by some stupid cowinkydink, everybody that gets pulled out of the 'hat' declines? Where are they then? Not gonna happen I'm sure, but at least the way they're doing it now, I would think that they know these people want to wait on their product.
Like Jon said, ain't no business man, but I just think there would have to be a better way.
Another option to the lottery system is a form of "tiered waiting list" system. Those who wants their instrument quicker pays a nominal fee to have their names on the express list. Those in the express list can have the instrument built between 3-6 months). On the other hand, those who prefer not to pay goes into the normal waiting list. All proceeds from this tiered system goes into charity under the payer's name.
Come and think of it, it is almost like the USPS delivery system. If you want it delivered faster, you gotta pay more.
I am not sure what's the ideal nominal fee for the express route...maybe $200, $500 per person?
The good thing about this tiered system is it eliminates the possibility of not getting an instrument under the lottery system. It also gives you the option of paying more to wait less. And it's also for a good cause too, since your money goes into charity. The bad thing is compared to the old waiting list system, those who aren't willing pay extra might have to wait a bit longer.
What do you think are the consequences of not expanding to demand that Mya-Moe will suffer? If they were in it for the money they could just double their prices.
The consequences are becoming quite evident as this thread evolves. More people displeased with it than pleased. I applaud them for not raising the prices, huge kudos to their high ethics. If they are not in it for the money and that is why they don't want to expand production just extent the wait list. If I am willing to pay $1200 - $2000 or more I want to know when I can expect delivery, even if it is 16 months. Not getting picked because of some random lottery leaves way too much uncertainty in the mind of the buyer. Having to continually reapply just in the hope they will pick you, I don't use that system for any other item I buy. Neither does anyone else.
They have a very successful business and I congratulate them on everything they have done for the ukulele community. As I said in my original post this is a nice problem to have. Lots of businesses struggle, starve and go under.
An argument for the lottery system is that there is a business "cost" associated with care and feeding of the wait list. For of all those, the price for those customers is locked in, so if you want/need to raise prices, you can't until 14 months (and growing) from now. Second, all those people have an expectation of communication now for picking woods, options, etc. I'm guessing they've done the math and figure the effort of managing the lottery will be less.
