Buying a mining machine is not a particularly easy task. Inexperienced people are always worried about a few questions, whether they will be cheated, whether they will buy fakes, shoddy goods, whether the price is pitted, How to calculate the warranty... I have this thing
Many people asked me, and I was surprised at first why so many people asked this question, and then I realized that the process was really messy.
The answers to these questions include the mining machine sales network/channel. This network is not designed by a company, but spontaneously formed. It is spontaneously formed by a decentralized community, whether it is a Bitcoin mining machine or Graphics card miners are similar.
Chapter 1 Roles of Various Mining Machine Sellers
The most upstream selling mining machine is the mining machine manufacturer, the most famous is Bitmain. Mining machine manufacturers are at the top of the mining machine sales network, but mining machine manufacturers generally only do wholesale business and rarely do retail. This is similar to any product manufacturer, and manufacturers generally do not engage in retail.
Although mining machine manufacturers are mainly engaged in wholesale business, there is still a small amount of retail. Each mining machine manufacturer has its own official website and regularly releases some retail shares for buyers to snap up purchases. But the amount is very small. Basically, no manufacturer will set up offline physical stores to retail mining machines.
The main shipping channel of mining machine manufacturers is distributors. Distributors are not employees of mining machine manufacturers themselves. Distributors are often a company, and some are individuals. Distributors are the second major role in the mining machine sales network. This type of role has to be richer, buying hundreds of mining machines at once.
Distributors generally sell the mining machines they buy, and some distributors are mine owners, and they mine themselves when they buy mining machines. Distributors generally sell mining machines online and offline.
Distributors selling mining machines online are basically selling on WeChat and QQ. Although some online mining machine malls do not do well, the traffic is small. The most popular offline mining machines in 2017 were mainly electronic shopping malls in major cities, such as SEG in Shenzhen Huaqiangbei. In the past, electronic malls sold computers, digital products, and various electronic accessories, but after JD.com and Taobao became more powerful, the business of electronic malls became worse and worse. Since 2017, many e-commerce stores have been rented out by people selling mining machines. The SEG in Huaqiangbei, Shenzhen has three floors almost all selling mining machines.
In the manufacturing sector, this type of two-level sales network of manufacturers and distributors is very common, but there are often one or more official distributors, and we also have reputations such as JD, Tmall, Suning, and Gome Very good professional dealers, so the equipment purchased in our daily life and work often does not have as many questions as mentioned in the introduction. But the manufacturing and distribution of mining machines are different. The first is that the reputation of digital currency and blockchain assets is not good. There are still many stupid people in the society. They all think that we are doing bad things, and the people who engage in digital currency are also very stupid. The matter of mining is wrong. The second reason is that the manufacturing and sales of mining machines are still short after all, and they are not mature enough to be advertised. The third is that the mining machine is too specialized. Therefore, the mining machine sales network confuses the current buyers.
Mining machine manufacturing is not like a mobile phone that can produce countless units sold in the warehouse, but has a certain delivery cycle. Often the mining machine of a mining machine manufacturer will be sold out as soon as it is sold. But distributors are a profession. They can't say that I only work a few days a year. In addition, all kinds of users need to buy mining machines for 365 days. Therefore, in addition to buying first-hand goods from mining machine manufacturers, distributors often also sell second-hand goods.
There will also be a process of getting goods between distributors. For example, if a distributor’s customer has a demand, but he is out of stock, he will find another distributor to get the goods, and the profit will be divided among others.
Distributors will also have different sizes. For example, if there is a large distributor who has been selling mining machines for a long time, he has his own brand and customers, and then he will set up offline branches in various cities, and some branches are just to join. Way to organize. There are also individuals who use their online influence to become distributors, but they cannot bear the pressure of logistics and warehousing, so he will be named under other major distributor brands and become a sales manager for that brand. , Talk about points and accomplish things. Many of the advertisements for selling mining machines that we often see in Moments are issued by these small distributors.
Another role in the mining machine sales network is the mining machine speculators. The price of the mining machine itself is still very volatile. Some people will buy it at a low price and sell it at a high price. This type of role is generally a personal behavior. You can buy and sell mining machines by sending your friends circle to speak in the group through WeChat.
The last terminal of the mining machine sales network is the miners, who bought them for mining. Large miners or miners who have a good relationship with mining machine vendors can directly wholesale from the manufacturers. But most miners can only buy mining machines from distributors and speculators.
In summary, there are several roles in the mining machine sales network: mining machine manufacturers; distributors; speculators; buyers. Mining machine manufacturers often only do wholesale business. Distributors are divided into large and small, wired online and offline.
Chapter 2 Logistics of Mining Machines
After all, the mining machine is a physical thing. It is necessary to understand that the mining machine sales network must involve logistics and capital flow.
The first stop of the logistics of mining machine sales is the warehouse of the mining machine manufacturer, which is the same for any product. Mining machines are electronic products, and generally there is a step of aging, that is, manufacturers will plug in the electricity to connect to the Internet for mining, and all mining machines will go through this process. The aging process is often the mining machine manufacturer’s own mine. The manufacturer’s warehouse may have two types, one is our common warehouse, and then neatly put the packed whole mining machine. Another type of warehouse is the manufacturer’s own mine, where the mining machine is working, or in the process of aging. Factory shipments generally refer to these two warehouses, and large trucks will load in these two warehouses.
The second stop of the mining machine logistics is the process of the distributors purchasing the mining machine. The distributor purchases the mining machine from the manufacturer in the form of wholesale, and the manufacturer delivers it. The logistics of this process is to move the mining machine from the manufacturer’s warehouse to the distributor’s warehouse.
There are often two types of warehouses for distributors, one is warehouse and the other is mine. Distributors often do not have factories and rented stores cannot hold so many mining machines, so large distributors often rent a warehouse with logistics companies. For example, companies like Debon Logistics will have dedicated warehouses for rent. A small distributor may directly rent a larger storefront and store the mining machine in the store. In offline stores like Huaqiangbei SEG Electronic Mall, they will also have warehouses. In addition to shops for rent, SEG Mall also has warehouses for rent.
Distributors with mining farms often send the purchased mining machines directly to the mining farm for direct mining, and sell while digging.
The third stop of logistics is the process of purchase by the miner from the distributor, which is the process from the distributor’s warehouse to the buyer’s mine. The easiest way is to buy and sell mining machines offline. For example, if you go to Huaqiangbei to buy a mining machine, the two parties negotiate a good price, give money, and deliver. The logistics can be pulled away by the miners themselves by renting a car, or by the sellers providing the vehicles. For online transactions, the distributor finds a logistics company to deliver the goods to the location designated by the buyer.
In summary, the logistics of the mining machine sales process is the movement of the mining machine in the following locations, the warehouse or mine of the mining machine manufacturer, the warehouse or storefront or mine of the distributor, and the buyer's home or mine.
Chapter 3 Capital Flow, Profit and Risk Distribution of Purchasing Mining Machines
The flow of funds in the mining machine sales network is very simple, but the profits and risks are the most confusing. Because the price volatility of the mining machine itself is close to that of Bitcoin, and the length of the warranty period, it extremely affects the price.
The flow of funds for the sale is simple, the buyer pays the seller.
There is a difference between spot and futures in the buying process. Spot goods can be shipped after payment. For futures, you pay first, and after the agreement expires, for example, two months later, the seller will ship the goods.
The price here is easy to misunderstand. First of all, because mining machine manufacturers will publish their prices on the official website, almost everyone knows their prices. But after passing through the hands of distributors, prices tend to be higher. Distributors have to make money and bear the risk of volatility. Distributors also have operating costs. If the buyer cannot buy the product directly from the mining machine manufacturer, he can only ask a few more distributors to negotiate a good price.
The price of the mining machine is basically positively correlated with the price of the coin. When the price of the coin rises, the price of the mining machine rises, and vice versa.
The price of the mining machine has a great relationship with the warranty period. The warranty time of the mining machine is set according to the date of manufacture, generally half a year. The warranty period you buy from a distributor will only be less than half a year. Warranty or factory date is an important parameter for bargaining.
Chapter 4 The basic method of buying the right mining machine at a reasonable price
I haven't bought a mining machine for a long time, and the method I can think of is the most commonly used method in our lives.
The basic parameters for evaluating mining machines are brand, computing power, power consumption, and the date of manufacture to measure warranty and second-hand goods. The sooner they leave the factory, the cheaper it is. When you make an inquiry, follow these four parameters to make an inquiry, and you will know the market by asking more. You will know which brand is good after asking a few of the brand's pros and cons. If not, add a WeChat group to ask. Hash power is a parameter that measures the output of a mining machine. The calculation of how many coins can be mined in a day is calculated. Then you can check the price of the coins to know how much money your machine can mine. Power consumption is a measure of how much electricity your mining machine consumes and is the biggest cost after you buy a mining machine. The earlier the factory date, the cheaper it is.
The best thing is to go directly to the manufacturer to buy. Of course, you have to have the strength, money, or time to guard the official website to snap up.
Buy from a distributor. If you are a pure novice, it is best not to buy futures. Start with the spot purchase, and the spot in the offline store. Mining machine scammers basically sell futures, and they don’t ship your goods if they collect your money.
Shop around is a must. But where can I find a distributor? Going directly to an offline store is the most reliable. Generally, offline stores must be online stores, but not vice versa. Online stores are not in places like Taobao Jingdong, and now mining machines are not allowed to be sold on Taobao. Online stores are all WeChat accounts. So first go to the electronic mall in your city, where you can collect information. Ask a few more and you will know the approximate price.
If you want to buy directly online, look for large distributors, well-known people in the community. But if you are an outsider and you don’t know these people at all, there are vests scammers all over the Internet.
The inspection of the mining machine is relatively simple, all have the factory serial number, the seller will teach you, don't buy it if you don't teach you.
The appearance, fineness and dust of the mining machine are also a bargaining standard. Of course, the ugly and dirty ones cannot be sold at a good price.