Schiit Happened: The Story of the World's Most Improbable Start-Up
Jan 8, 2015 at 9:53 PM Post #4,756 of 164,988
If copyright expires, how come Disney still has rights over Mickey Mouse.

I mentioned in my post that art is different from physical product. Read it again.

There is much more to Intellectual property than just copyright. Mickey Mouse is probably also a registered mark. 
 
Anyway, who cares? None of us created Mickey Mouse so why should the inventors company (which is still in business) not be able to market their assets including copyrights, trademarks, registered marks etc as they see fit. 
 
Books, CD's, reports, digital products etc. eventually have their copyrights expire. Yes, there are ways around them expiring as well there should be if they are actively being promoted or used in business. 
 
Geez, how far we stray from the topic.
 
This conversation for me, is done. Let's move on. "These are not the droids you see".
 
Jan 8, 2015 at 10:07 PM Post #4,757 of 164,988
due to all these schitty posts, time to unsub again and only follow what Jason posts.
 
Jan 9, 2015 at 7:06 AM Post #4,759 of 164,988
I bought a chromecast from amazon as a gift for someone who already had one, so I arranged a return. Before sending it out, the intended recipient told me not to return it so he could regift it. When I sent amazon an email telling then to go ahead and charge my account, their email back said I could keep it at no charge. Love me some amazon, as long as i'm not a shareholder.


I recently ordered a foot jacuzzi thingy from Amazon that my wife wanted. It turned out to be a total piece of crap. Amazon did the same thing, they  credited my account and told me to put the item in the dumpster. It was a $30-$35 item. They said occasionally there are items that just don't warrant the expense to return.
 
Jan 9, 2015 at 8:35 AM Post #4,760 of 164,988
Until I worked with expensive products, I never really understood how much unethical and illegal actions by criminals parading as customers can cost a business. One of my first experiences with this at Schiit was a fairly unsophisticated fraud ring in Russia that used stolen credit cards to purchase several products from us. Only one product was shipped before we caught on. Over the last few years we have been the victim of several increasingly complex fraud rings that use stolen credit cards, spoofed IP addresses, and drop houses. Internally, we have gotten very good at spotting fraudulent orders and have been able to keep those costs to a minimum. Three people process orders and we are constantly checking with each other if we suspect an order is fraud. I've checked LinkedIn profiles, Facebook pages, company websites, Google Maps, Zillow, and just about everything else you can imagine to verify that an order is legitimate. Our vigilance saves the company money and keeps us from having to raise prices.

When it comes to Amazon, that company is in a whole different world when it comes to fraud. That is one of the main reasons that I love working with Amazon. For the most part, fraud isn't my problem any more. I think my favorite Amazon fraud case was the guy who purchased a Lyr and a Bifrost from Amazon's fulfillment warehouse, claimed that it wasn't delivered, and then a couple weeks later contacted Nick and Laura trying to get a new set of tubes because his were acting up. This guy had tricked Amazon in to giving him a Lyr and Bifrost for free. Laura takes fraud very personally. She is fiercely protective of her family and Schiit is part of her extended family. She goes into bloodhound mode and figures out that this guy is ripping us off. So I contact Amazon about it. I get a quick brush off that we are getting paid for the undelivered order and not to worry.

I have to admit a personal weakness. There are times when working with large bureaucratic companies or agencies that I just like to kick the hornet's nest and see what happens. This was one of those times. So I kept pushing and sent several emails to different Amazon departments hoping to find someone who cared about losing a thousand dollars to fraud. I finally found one person who was interested enough to at least listen to what I had to say. I made two decisions that day. The first was to never purchase Amazon stock. The second was to watch Amazon like a hawk. If they didn't care about losing $1000+ dollars of their money they sure as hell weren't going to care about Schiit's money.

Whenever anything comes back from Amazon we go over it very carefully and have been able to get reimbursed for some fairly good sized screwups on their end. You can make a ton of money on Amazon, just watch your back.
 
Jan 9, 2015 at 9:53 AM Post #4,761 of 164,988
If copyright expires, how come Disney still has rights over Mickey Mouse.

I mentioned in my post that art is different from physical product. Read it again.

Because 15 years ago Congress passed the Copyright Term Extension Act.
 
Jan 9, 2015 at 10:42 AM Post #4,763 of 164,988
If you want the convenience of purchasing via Amazon, there will be an incremental cost involved.

 
I think you've unintentionally sold yourself short here, Jason.  My purchase direct from you was as convenient as any physical item I've ever purchased from Amazon, and I speak as someone whose purchases from Amazon go back to using a text-mode browser (no WWW there at the time) at the local public library.
 
Jan 9, 2015 at 12:44 PM Post #4,764 of 164,988
Jason,
 
While I understand the reasons for your pricing and product changes on amazon, I am not sure it will have the effect you hope. 
 
A little about me and why I give Schiit.
 
Bought a set of Sennheiser  HD598 but was not happy with the sound quality from my computer.  Bought a Fiio e17 dac/amp and what difference.  Both purchased on amazon.  Since I purchased the Fiio amazon kept showing banners of Schiit products. So I looked.
 
My first piece of Schiit was a original model Lyr that I got on a amazon warehouse deal, it was complete and well packed.  As I was waiting for delivery of my Schiit I found head-fi and started reading about the incoming Schiit.  Great reviews on head-fi, hoped I would be happy. When I received my amp, all I could say was wow.  No more Fiio for me.
 
I am now the proud owner of several pieces of Schiit.  All bought on amazon.
 
The company I work for will only give branded gift certificates as Christmas gifts. Of course I chose amazon.  I had already planned on a new piece of Schiit, to upgrade to either new Modi 2 Uber direct from Schiit it was not available on amazon or a Bifrost USB b-stock from amazon.  Since I got the gift certificate, easy decision, Bifrost USB b-stock. But the gift certificate alone was not enough, so I had to wait for first paycheck of the month to have enough.  I had been watching amazon daily since deciding to make the purchase just before Christmas.  First their were 4 in stock, then 3, then 2.  But Friday was only two days away. I was going to make it. On Wednesday I look to make sure that no one has bought my Schiit and lo and behold my Shiit is gone.  Bummer, I thought somebody else bought both pieces of Schiit over night.  Then as I scan the rest of the Schiit on amazon I notice a large increase in overall Schiit prices. Hmm...
 
Later that morning I go on-line to head-fi and find a new chapter of Schiit to read.  Cool, I have loved the whole post, great inside info into business and audio.  Then I read the chapter title. Hmm, maybe the answer lies here.
 
Well it did.
 
You did not mention whether you tried to work with amazon regarding the serial returner?  That is clearly wrong and it would seem to be in amazons best interests to fight as it adds to their costs too.  Even Walmart reserves the right to limit returns in cases of abuse.
 
Again, Jason I understand your reasons.   However, those who would purchase thru fraud or intent to abuse return policies will not care if the price is $10.00, $20.00 or even $50.00 more.  They do not intend to pay for the product anyway.  As a legitimate amazon customer I do and charging me more will not fix the problem of serial return abuse.
 
Now I must decide again what to buy.  Modi 2 Uber or wait for the b-stock items you say will soon be on the Schiit site. Either way I won't be able to use my gift certificate or the benefits such as "free shipping" that I pay for as a part of amazon prime.  The other option is to buy something else from someone else. Not what I want to do because I still love my Schiit...
 
Thanks for reading.
 
Jan 9, 2015 at 2:02 PM Post #4,765 of 164,988
  Again, Jason I understand your reasons.   However, those who would purchase thru fraud or intent to abuse return policies will not care if the price is $10.00, $20.00 or even $50.00 more.  They do not intend to pay for the product anyway.  As a legitimate amazon customer I do and charging me more will not fix the problem of serial return abuse.

 
If I understood his prior posts correctly, the price increases are not related fraud, but greater costs associated with selling on Amazon and their 11nthybillion fees and surcharges.  There is no free lunch; someone has to bear the costs of their uber-liberal-hassle-free customer experience.
 
IIRC Amazon adds an additional 25-30% 'true' cost to comply with all their requirements (hopefully that's somewhat right...don't want to dig through posts).  So I assume price was increased to sustain their desired final margins.  If a person does not want to buy direct (such a Schiity business model =P), the convenience (additional cost) of using an outside distributor is passed onto them.
 
Please feel free to correct me if I got any of this wrong...
 
Jan 9, 2015 at 2:37 PM Post #4,766 of 164,988

Mr.LxJLthr,
 
Certainly, you are spot-on!  
 
Amazon sells stuff, they get a commission, just like all sales people, Amazon is a "Sales Company"! 
 
People seem to like Amazon but it's a Robot, it doesn't like anyone. 
 
Amazon charges Schiit a percentage that comes off the top of the Company's profit, it's another expensive rent, it reduces the capitol available to develop products, buy critical infastructure items for the Shop, pay employees.  
 
Amazon is almost like what the original colonists had with the British Government back in the 1700s, taxation without representation. 
 
Tony in Michigan
 
Jan 9, 2015 at 2:46 PM Post #4,767 of 164,988
 
Mr.LxJLthr,
 
Certainly, you are spot-on!  
 
Amazon sells stuff, they get a commission, just like all sales people, Amazon is a "Sales Company"! 
 
People seem to like Amazon but it's a Robot, it doesn't like anyone. 
 
Amazon charges Schiit a percentage that comes off the top of the Company's profit, it's another expensive rent, it reduces the capitol available to develop products, buy critical infastructure items for the Shop, pay employees.  
 
Amazon is almost like what the original colonists had with the British Government back in the 1700s, taxation without representation. 
 
Tony in Michigan

Except unlike being under British rule of that day, you can skip Amazon and buy direct. One now has choices, the colonists had no choice.
 
Jan 9, 2015 at 2:53 PM Post #4,768 of 164,988
If I understood his prior posts correctly, the price increases are not related fraud, but greater costs associated with selling on Amazon and their 11nthybillion fees and surcharges.  There is no free lunch; someone has to bear the costs of their uber-liberal-hassle-free customer experience.

IIRC Amazon adds an additional 25-30% 'true' cost to comply with all their requirements (hopefully that's somewhat right...don't want to dig through posts).  So I assume price was increased to sustain their desired final margins.  If a person does not want to buy direct (which is Schiit's main business model), the convenience (additional cost) of using an outside distributor is passed onto them.

Please feel free to correct me if I got any of this wrong...


FWIW, on the entry level products (Modi, Magni, Vali, etc.), the 'Amazon Fulfilled' way costs just a few bucks more when you 'run the numbers' because you get 'Free Shipping' from Amazon (over $35).

For instance, A Vali direct from Schiit to the Midwest US, the end cost ends up being $119 + ~$12 (shipping) for a total of ~$131
Same product from Amazon is $139 with 'Free Shipping'

For Magnis and Modis in the past, the delta was even smaller ($2-3 if I remember correctly).

The question in the past was 'what if I may not like this product?'. With, Amazon Fulfilled, you have 30 days to decide -- and NO Restocking Fee. With Schiit Direct, you have a 15% restocking fee AND only 15 days to decide.

That said, the recent change in policy to waive the Restocking Fee is a nice update to the policy!
 
Jan 9, 2015 at 3:19 PM Post #4,769 of 164,988

Mr.StanD,
 
Sort-of, now we pay Washington and still have no representation but it's our "no representation".  
 
You hit the Nail, we can buy from Schiit, which seems the ideal.  
 
Good point 
 
Tony in Michigan 
 
Jan 9, 2015 at 3:22 PM Post #4,770 of 164,988
 
Mr.StanD,
 
Sort-of, now we pay Washington and still have no representation but it's our "no representation".  
 
You hit the Nail, we can buy from Schiit, which seems the ideal.  
 
Good point 
 
Tony in Michigan 

The more taxes you send to DC, the more money goes out the window. It's like giving a teenager your credit card.
When the Gov't gets a job done, they never lower taxes.
 

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