by 
Electronics distributors are seeking to tap into the growing “do-it-yourself” (DIY) movement in electronics through some unique incentive programs. Starting today, Jameco Electronics will begin paying royalties on design kits. The program, dubbed “Club Jameco,” provides designers with the opportunity to generate revenue without taking traditional business risks associated with sourcing components, designing packages, and marketing new products.
Under the program, the designer develops and submits an idea, builds the bill-of-material requirements and provides step-by-step instructions for the device. Diagrams and photos are encouraged, along with a video to post on the Website or on YouTube.
Royalties will vary depending on quarterly sales. Kits generating sales of less than $200 per quarter receive 5 percent of sales; and those with more than $500 per quarter get 10 percent.
Quantifying the value of the project will depend on Jameco's ability to source components at a reasonable price, ensure the device works as intended, and determine whether the kit instructions are clear and concise. A crowdsourcing model, where developers in the Club Jameco community comment on the project, will provide feedback on the viability of the design. Once approved, the description and SKU for the kit will be posted online.
Jameco will source the components from more than 150 suppliers to create the kit, stock it in their warehouses, and promote it on their Websites, catalogues, and through social media.
Greg Harris, Jameco's vice president of sales and marketing, said both distributor and developer own the intellectual property rights. The creator retains the right to sell the design through other sites. The distributor takes the responsibility for pricing, based on costs for components, marketing, and other business-related issues.
The service isn't without challenges. The first: Jameco must recruit developers to design the kits. Harris isn't concerned. “By using the power of the crowd, we could have thousands of kits to offer hobbyists in a very short period of time.”
The crowdsourcing model lets the community vote for projects during the design phase to help designers create the best projects and ensure builders get what they want and need. This pay-for-projects concept, combined with crowdsourcing, creates engagement in the electronics hobbyist community.
Jameco will market each kit to hobbyists in magazines and newspapers ads, online banner ads, email marketing, Facebook, and through participation in the Maker Faire. The distributor also developed partnerships with other hobbyist organizations. Jameco already uses search engine marketing, paid search, affiliate marketing, and social media, such as YouTube, but has not yet tied these efforts into Club Jameco. Harris has no immediate plans to dive into promoting the kits on the social site, Pinterest.
Harris believes Club Jameco will assist the distributor that specializes in selling small quantities to hobbyists, to create a Mecca for thinkers. The effort is also targeting customers like high school and college students working through design challenges related to robotics and other sophisticated electronics.
One hobbyist at Jameco combined origami skills with LEDs to create a Mother's Day bouquet. The flowers, made with paper, light up with color LEDs. This kit provides an example of how people, other than engineers, can create designs and earn cash.
And while Harris declined to provide Jameco's investment for the project, he called it “significant.” The Website and royalty programs become the first projects in a long line to build out the Club Jameco. The distributor plans to launch the project at the Maker Faire on May 19, but the site goes live on May 18. Club Jameco membership is free.
That is wonderful concept. Designer will love it. I hope to many wonderful product coming out of this model.
Well, I agree with you, it seems also the trend started initially by our needs for customizing personal objects, including electronic devices and transfering similar attitude to microelectronics, right way for doing that should be to conceive special pack for delivering of gitfing. As Laurie reported, especially for young people, there are several possibilities for providing creations, ideas or attending contexts with the chance for receiving payments which could allow them some indipendency from parents, in a such way.
Hi, Laurie
“Harris has no immediate plans to dive into promoting the kits on the social site, Pinterest.”
I don't believe Pinterest is a good place for the kits. Of course I might be wrong. I am just skeptical about the usefulness of the site for this particular project.
-Susan
I think this is a pretty cool program as well; as is element14's efforts in DIY. In general, electronics distribution is bridging the gap betwwen the stuff you'd buy at Radio Shack and the 'industrial” side of things. There's no reason why hobbyists and modders shouldn't buy from this channel–I just don't think anyone really reached out to them before.
Kind of cool thing for all the interested electronics engineer out there looking to sell their ideas.
Hi Susan,
I was skeptical about Pinterest, too, until recently. Pinterest is a great place for kits because each pinboard would highlight the components that comprise the kit. The photos of the components click-through to the manufacturer's website to provide more information on specs. The site is purely a marketing machine. Once Pinterest integrates ad targeting, the boards will pretty much provide the data to create audience segments for targeting.
Hope this helps.
Laurie
It will be interesting to follow up and see the type of people interested in buying and building the kits — gender and age group. And, how Jameco markets the kits to the masses.
Well, in my opinion there is an additional aspect to consider and it is about on line distributors for customizing, at the beginning business cards and so on; as of today they are migrating in allowing the on line design and customization of friendly objects, especially kits for home or personal (micro-devices). I believe they could act as an additional player of this game.
This is a very interesting and fun idea. Encouraging a ground up swell of design involvement might just be that innovative idea to start a new trend. I look forward to seeing how others respond to this development.
It is a great way to identify new talent. Not every designer/developer gets recruited in a reputable firm. However, designing components is not an easy task. It requires considerable hardwork. Many will backout due to the risk that their design might remain unsold and their hardwork goes drowned. Plus there isnt long term job security in the task until many companies like Jameco step into crowdsourcing designs.
@Barbara:well, in a such way, we could outline buying on line allows bad and good; in addition to your personal story about retail and virtual store, on line resellers are in condition to advertise easily, people abroad. Each one assists for example to spam's blasts, every day. But at the end, on line resellers allow for endusers a realtime benchmark on the products they would like to buy. That said, I believe “bad and good” could potentially summarize the picture !
The message is clear. Keep it simple. Keep it direct and don't try to con the buyer. Of course, sellers offer you more than you want because they want to maximize the sale and grab more of your dollar. In this case, they lost.
@Laurie, thanks for the informative post. I feel this is an excellent community to learn, design, sell, teach electronics projects. I will definitely register with this community.
Plus there isnt long term job security in the task until many companies like Jameco step into crowdsourcing designs.
@Waqas, true. I feel this portal is win-win for both the designers and suppliers. Its helps designers to sell their idea and suppliers to sell their products. I hope we will see more innovative product being created by this portal.
@ tirlapur
It is a win-win situation for only the developers that get successful in selling their design. For those developers who put their hardwork in and dont get their designs to be sold, their hardwork is drowned. Nevertheless, we can be hopeful that many distributors and other members of supply chain will be able to step into the crowdsourcing projects and make this model a way for designers to get paid well without tolerating the painful process of recruitment at firms.
It is a win-win situation for only the developers that get successful in selling their design.
@ WaqasAltaf, I dont think success can only be measured by money earned. I am sure this portal will help many of the designers to improve their design skills because they can interact with other designers too.
From the marketing point of view, the lesson to be learnt is that if you promise more and under-deliver it is going to hurt your brand. Pretending to remember the customer when you dont, gives customer the feeling that he has been victimized by marketing shootout. When it comes to large-scale sales such as thousand units of component which are being re-ordered by the customer online and you tell him the same thing which Barbara was told, you might loose the business.
@ tirlapur
Ya you are right that money isnt the only measure. Designers will learn a lot too from the experience and competition. However, component designing while following extensive guidelines with a probable end result of your design being rejected can make you extremely disappointed when you are not rewarded. In case of a hobby, this might be acceptable as money wont be the only source of satisfaction.
Sometimes, its seems the bigger a company grow the lesser they improve on their customer relation
That's right and I am sharing your perspective; but at the end, one of the dimension for buying online was also the way for allowing savings and cut costs due to customer service that instead can really be provided a tangible by a real shop retail. Am I wrong?
I agree with you Bolaji, In their attempt to make more money, they lose more customers and eventually lose more money.
You are right, Saving cost is suppose to be the advantage but does it really save cost and time?
@ Adeniji
Smarter Customer Relationship Management systems and culture of treating customer as a boss is a basic ingredient to remain in an organization if it wants its customers to avoid the feeling that they are not valued as the organization grows bigger and customer-base grows. Whether it be electronic component industry or the most-discussed retail industry, the enterprise should learn to give respect to customers that were there since the premature phase. This is how you gain customer loyalty.
I totally agree with you on that, on the other hand could it that managing a customer relationship data base is a bit tedious because I feel every company that must sell well should know that.
@ mfbertozzi
Well you are right. The enterprise can cut costs in online business which were saved due to non-existent physical outlet. But its important to relocate those saved costs to managing customer information better as in online business, customers are more sensitive to leave the website without shopping than they would be when they are in an outlet. Its important to make customer feel that the basic characteristic of internet of remembering the data is present in the enterprise's online business.
Even though I still have to hop in the car, it's easier than shopping online.
@Barbara, I agree with you that shopping online is not easy but then I would prefer buying online rather than visit the shop because in shops most of the times you dont get the items you want to purchase. Moreover strategies like “Cash on delivery” is attracting more buyers towards online shopping.
This is a good point Adeniji and honestly I don't have right answer. I can also report to the community that I've collected bad and good experiences about buying on line. I've learned the quality of on line retailer is the key and usually, feedbacks coming from users from forums, could describe in a such way, how is realiable the seller. My suggestion is to deeply check feedbacks before to proceed in buying.
You are totally right, but in a situation whereby you changed your mind on the delivered item, what is the consequence, yet i,m still willing to buy from the shop?
Does it happen that what you ordered for on the internet is not the same that was delivered to you.
@mfbettozzi: Yes, I agree with you. but next time your mind is prepared for it and you may not be so much disturbed.
I also like to visit store and get accessories.
Thisis the kind of situations what generally designers will get into. But most of the times distributors will come to your rescue. If you are a bigger customer it's more easier to get the direct information from suppliers without much hassle.
A wise man once said when you stop chasing money, money will come to you. Maybe big business should try this approach. Focus on great products and services and customers will come to you!
I didn't get it how the company knew about your need for print oil but didn't know about your printer model?
Furthermore, the confusion of the existence of all these different types of cartridges has been made by the printer's manufacturers. That fact makes the on line buying process too difficult.
I know the same but instead of money with luck. Companies should always chase their customers (with the proper respect to their privacy) if not, the customers will fly away ….
Hi, pocharle,
“Focus on great products and services and customers will come to you!”
Very well said! Plus, great products and services don't need millions spent in marketing and adventising to attract and retain customers.
-Susan
This looks to be a good idea. The individual designers can get a platform weher they can generate business without the associated financial investment.
How will the intellectual property rights handled in such a scenario is however not clear
Hi, Barbara
There is something I don't seem to understand. If you already had a user name and password on that site, why didn't you log in with that user name and password at the beginning? It seems to me that you were trying to register again instead of logging in, that's why the site said the user already existed.
-Susan
Hi Praabhakar_deosthali: Jameco said both designer and the distributor would hold the rights. Greg (Harris, Jameco VP of sales and marketing), perhaps you can elaborate.
Best,
Laurie
Buying pattern should be designed and based Oma good strea Lined process. I feel digital signs are the key and it's the future for buying pattern decisions
I think retail sites like that should do frequent surveys and find a quick and easy way to get feedback from their customers to know how well they are serving them.
Websites are getting very personal these days, but most of it is just superficial, automated stuff just intended to make the computer look smart rather than really serve the customer.
@Susan
I feel the companies don,t really trust that their customers will remember their user names and passwords and then since printer cartridge is not what you buy until you have exhausted the privious one, so they might be careful of keeping so many passwords and user names when they are not even sure if and when you are coming back.
@susan, I agree with you that it will not cost a futune to make customers and to keep them coming back.
It only take a system, a working system that will follow-up customers even if you have not heard from them for some time
@Nemos,
probably because they are only concerned with the sales of print oil and not printers,
on the other hand, it may be a way to correct having to sent wrong printer oil for a wrong printer and moreso ,m most customers don,t know much about their printers as long as its working fine.
A very inovative idea i must say, and a great opportunity for young designers to have their products on the market.
Another great benefit is being able to get customized kits that makes it easier for a DIY enthusiast to find something very close to what they need.
On the part of hte designer, anyone coming here should understand that it is more than just cool designs, but meaningful designs. You can create anything that makes you feel good, but if its not relevant then no one will buy it. I think it would be a good lesson for designers, most of us think that once we've spend alot of effort in creating something, then everyone else must want it.
Hi, Adeniji
Companies keep a record of all their customers, especially those who have used their Website to make online purchases. This is part of their marketing startegy. Also part of their marketing strategy is to send reminders to customers, like this company sent to Barbara.
An ink cartridge lasts for X amount of time, once the date of purchase has been logged into the system an automated reminder will be sent to that customer at about the time the cartridge runs out of ink. Unless the customer deletes his/her account, and unsubscribe from the mailing list the company will retain and use the customer's login information, again, for marketing reasons.
-Susan
@pocharle,
you are right, any business that chase money at the expense of the customers will eventually lose money and customers. Actually, the customers are the custidian of the money, it will only become your on the table of exchange -products and services in exchange for the money.
Retaining customers is a major part of any business that must survive.
Sorry to hear about your experience. For that kind of stuff I love Ebay. I click on my ebay link, type in my password, search for HPxxxx replacement ink, click buy, type in my paypal password and 2 days later ink appears. Whole process takes about 2 minutes and is quicker than me trying to find my car keys. Some suppliers can do it well.
I have limited experince in online shopping because i like to go to a shop to get a feel (both visual and sensory) of the product, which is usually missing when doing shopping online. I also have someone to talk to about the alternative products and offers in shops. So, the human touch (or experience) is somehow missing.
One of the advantages of on line shopping as I see it is that we can visit and revisit and revisit an on line shop as many times as we wish till you are satisfied that you have got all the information.
Try to do the same thing at a physical shop and you sure are going to get a different look from those sales people at the counters. At the second or third reepat of the same question and they will surely get irritated.
Excellent point Susan, and for the most part, I do that. Some sites automatically lead you to the login box; this one did not. It was tucked away in a corner somewhere. At any rate, I have difficulty remembering my usersname and password for all the sites I use regularly and the ones I use the most have a “remember me” option. I don't use the same username or password for evey site I use–most don't allow that–so I have a mishmash of combinations. I write them down, but still, within my company alone I need three usersnames/passwords everyday; and a total of 10 to access the company sites for things like expense reports and vacations. Other than my credit card #, which usually is not automatically saved, I'm OK with sites retaining username and password so I can click through to make the purchase quickly. So in the case, I'd say I use this site every 6 months, and I drew a blank on username/password.
crowd sourcing, funding has been a big trend in the past year or two. The main reason is the amount of people that are willing to invest small amounts of money (starting with Obama's 2008 campaign).
This is a different approach but it also looks for the social aspect of the World we live in.
Very interesting case. They had great success with capturing your attention but they failed to deliver a great experience. It's probably a broken link between the marketing department and the web designers (etc.)
Great idea that offers people scope for creativity and a bit of profit.
@Mr.Roques,
That is a possibility and really a high one, moreover, i feel that may also be the side effect of online marketing.
While designing a user interface, a lot of companies tend to ignore the concept of usability engineering which defines how the user is supposed to interact with your system in the most effective way. It's not enough to have the features on your website that the users can use. It's more important to organize them in a way that the user doesn't have to enter any redundant information and gets through with the process with minimal effort.
I think if the system was smart enough to remember your name, email address and your ink cartridge status, there was no need for it to ask you for all these details again and create an account. It doesn't even make sense from a security angle as the system is not being expected to store any confidential info like CC number.
@Taimoor: I never really thought of the user interface being the thing that can ruin a shopper's day. Now that you point it out, though, it makes a tremendous amount of sense. I think on the back-end of things (tracking ink usage, prompting an order) this company is using its technology skills. But on the front end, not so much. Thanks for adding to my perspective on what can go wrong in an online shopping experience.
This model has helped me understand the concept of “crowdsourcing” better. Whne I first saw the term, it was very confusing on how the process actually works. This may be one of the simpler applications of crowdsourcing, but I get the idea.
Barabara, in most of the online shopping websites we need to have a user id and password for placing an order. This is a onetime process and will help us to keep a track for our previous orders and store the default payment details along with shipping address. So every time we won't need search for to the printer type and cartridge number. From order history we can know about our previous or specified orders. Some websites are also offerings guest logins without any user id or passwords, but the problem is we don't have the provision to track our previous orders or for storing any info's.
Himanshugupta, that's right. if you need a feel of the product and to know how it looks like, then obliviously you have to visit the retail shop. But for that you have to spend more time and ofcource the pricing is also on little bit higher side. Online shopping provides you a comfortablty of shopping from your house or office or on the go.
@Jacob: thanks for the additional info. I will plead to user error in this case. It's not an isolated incident, however. I don't think I really do that much online shopping, yet, when I bump up against a password/username I haven't used in 6 months, I guess I must.
It's not just shopping, either: it is access to sites to do stuff online (pay bills, get copies, check staus, etc.) I need to find a differetn system to keep track of these things (handwritten on paper doesn't seem to be working) 🙂
Susan,
To add to that, with little marketing necessary you can find out if people really want your offering BEFORE you go all in…
Agreed. But you must gain those customers before you have the opportunity to retain them!
I like that GAIN BEFORE YOU RETAIN!
Hi, pocharle
Yes! Fantastic add. 🙂
-Susan
I honestly didn't give a second thought to the term crowd sourcing in the article, had to go back to look it up.
It is my first time encountring the term too, and i think its just a great model, and yes this is a unique implementation of that model.
How about adding some buying patterns towards this ? I feel it will help generate something productive
Nimantha,
What kind of buying patterns do you want to add?
-Susan
I think this is one of the best uses of crowdsourcing that I have seen. Great idea, indeed. This will certainly help the company come up with out-of-the-box ideas that their paid engineers may not have been able to think about.
I think intellectual rights management will be important. If the original designers do not get to keep the patents and do not get the royalty for their products, they may not find it attractive enough to participate. They may want to launch the finished product themselves because that may be a better option financially.
Thanks. Who knows, this might be the start of a new marketing career…
pocharle,
It's never late when there is still life. Just let us know. I am a fan of career changes myself. I believe they add so much knowledge and experience into your life.
-Susan
Any thing. Theres a lot but if you can add one then its obvious that the other pattern can follow suit isnt it ?
Tracking buying patterns is one of the things online companies do really well–it's easy to “capture” trends online. In retail, companies are giving out rewards cards for the same reason. I'm actually tired of pulling out two cards every time I make a purchase, but the savings are pretty good. That is, if they are savings: most of the time, the incentive is buy one get one free, and I don't need two…
Some of my friends call me Mr. Pivot. Not because of sports but I've tried so many different things just for the sake of trying. Some things have been fun and so far, IT is the king. But I am still experimenting..
pocharle,
Maybe marketing is the next one in the experimentation.
-Susan
Hi, Laurie
Do you believe that people are going to log in to Pinterest to click-through to the manufacturers Websites?
-Susan
Hi Susan,
I don't believe people will specifically log into Pinterest to click on an image, but yes I do believe if they're in the site they will click on an image they like. Marketers and businesses need to prepare for that click through by developing well optimized landing pages attached to those images.
Laurie
Laurie,
What makes me skeptical about all this Pinterest issue is that the site started as a place where people could have “collections” of their favorite things all grouped under categories, but still a hobby place. If marketers start tranforming the place in a marketing arena, is the meaning of the site going to change? Of course it wouldn't be the first place a site transforms from its original idea.
-Susan
I don't believe that was Pinterest's original plan. Not after researching the company's investors. I believe the original plan was to turn the site into a marketing platform after they ramped up adoption, similar to Twitter and Facebook.
Barbara,
“I have difficulty remembering my usersname and password for all the sites I use regularly and the ones I use the most have a “remember me” option. I don't use the same username or password for evey site I use-“
It sounds really complicated. What about using the same user name at least? -this is possible. You should write down all your user names and passwords somewhere and keep them handy, too.
-Susan
Hi Susan–thanks for the sound advice! Here's the wrinkle: several of the sites I have to use won't accept the username or password I prefer to use: some don't accept repeating letters, some want one numeral, some want two…so I end up using variables of my “universal” username and password for these sites. And I do write them down…and frequently misplace the master password sheet. I am actually an organizational nightmare in everything except my work (where I am able to appear organized in spite of everything)
Hi, Barbara
“And I do write them down…and frequently misplace the master password sheet.” For this, what about keeping your master password sheet in your favorite book? You can also pick a page number to have it always in the same place.
Time ago I used to have different user names and passwords for every different site. The problem became when the sites I log in started to be too many. Then it was when I simplified everything. If you keep it simple you have less chances to forget your log in info. And keep all that info in your favorite book. 🙂
-Susan
Laurie,
In that case, I will wait and see how it evolves. Sometimes the original plans have to be changed according to the response of the users, though.
-Susan
I am all for simplicity. A favorite book is a good idea.
I won't dispute that. I have a few app ideas that should do pretty well if the marketing is done right.
I truly is a great way. It helps people who don't have access to much funds. The risk of posting their idea is very low, so I will expect it to grow significantly over the years.
Well, sometimes programmers try to do more than asked and capture every single bit of information without noticing that users really don't want to, or have already entered it somewhere else.