What is a Preorder and How Does It Work?

KAUTE is launching its first product via a preorder sale.  More specifically, KAUTE is launching its first product via a “founder-funded” preorder sale.

What is a "founder-funded" preorder?

First, let’s start with the term preorder…

A preorder (n.) is an order for a product that has not yet been made commercially available. Preorders are placed during a limited order window (e.g. 7-21 days) and ship out weeks after the order date. Customers typically pay up front for a preorder and payment is collected like a normal purchase. It’s a standard sale with an extended fulfillment time, so customers receive regular updates about when to expect to receive their preordered products. 

A “founder-funded” preorder (n.) is a specific kind of preorder. Our “founder-funded” preorder invites customers to become the first, key supporters of the brand. These “founding supporters” are the ones that truly help the brand launch, as brands often have to meet a minimum order quantity (MOQ) before production of their product(s) can begin. KAUTE’s MOQ is 100 preorders.  

What is KAUTE’s estimated “founder-funded” preorder timeline?

(DAY 1*) KAUTE launches its “founder-funded preorder” sale on its website!  Customers place their preorders for KAUTE’s product, vying to become one of KAUTE’s initial “Founding Supporters.”

(DAYS 1-14*) KAUTE receives 100** preorders from their “Founding Supporters,” and the production of its shirt is given an initial “thumbs up”! KAUTE continues to take preorders (beyond the initial 100 orders) until the preorder sale window closes.   

(DAYS 15-45*) KAUTE places purchase orders with their fabric and trims suppliers and with their Los Angeles production partner. Fabric and trims are then shipped to the production partner, who then cuts and sews the materials into KAUTE shirts. 

(DAYS 45-60*) Finished KAUTE shirts go through a quality check in Los Angeles before being shipped to Victor, Idaho. KAUTE then does its own inspection of the shirts.   

(DAYS 60+*) KAUTE begins shipping its shirts to all its supporters, who receive the packages and celebrate!  Any necessary accommodations/returns are initiated within 14 days of the receipt of a KAUTE shirt.

*These are only estimated timelines -- not guaranteed dates -- and they can vary widely depending upon many factors associated with the purchase order, production and delivery processes.

**If KAUTE does not reach a minimum of 100 preorders during its preorder sale, then it will cancel the entire order. All monies initially designated for the KAUTE preorder would then be refunded to customers/supporters and KAUTE would go back to the “drawing board,” so to speak.

Why is KAUTE launching a “founder-funded” preorder?

  1. It's important for us to test the viability of our first product before we produce it in larger quantities. 
  2. A preorder sale allows us to make good on our promise to be more sustainable. We only produce what is ordered, thus we negate overproduction and waste.
  3. The bulk of the money generated from our preorder will go towards manufacturing the product itself. This sale enables KAUTE to launch and to grow a thoughtful business.

What are the benefits of preordering with KAUTE now?

  • You have an opportunity to become a founding supporter of KAUTE!   
  • Your preorder product will be produced in small batches in Los Angeles, California. This means that each product is carefully sewn with you in mind.
  • Your preorder will support independent, more sustainable fashion made in the USA!

What consumer protections are in place if I place a preorder with KAUTE?

Preorders are governed by the U.S. Federal Trade Commission (FTC) via its 1975 “Mail, Internet, or Telephone Order Merchandise Trade Regulation Rule.”  To comply, KAUTE must…

  1. Provide our customers with a “reasonable” estimate of when we will be able to ship our product.
  2. Communicate any shipping delays to our customers, as soon as “reasonably possible.”
  3. In the event of a shipping delay, provide customers with the option to cancel their preorder immediately and receive a full refund.  

Are there any additional protections for consumers who support a “founder-funded” preorder?

As explained above, KAUTE must meet a minimum number of orders (MOQ) before it can begin production of its shirt. If KAUTE does not reach a minimum of 100 preorders during its preorder sale, it will have to cancel the entire order. All monies initially designated for the KAUTE preorder would then be refunded to customers/supporters and KAUTE would go back to the “drawing board,” so to speak.