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From the technical side barcode equipment looked like a good business. The biggest issue was whether the future partners could manufacture it for a low enough cost. After months of research they determined it could be done. Soon after the Christmas meeting, the six partners put up NT$ 1.2 million in capital and quit their jobs at Acer. "To get the initial investment together, some of us took out mortgages, sold a house, or cashed in stocks. I even sold my wife's wedding bracelet," recalls Carlson, one of the founders.
It was a tough beginning. By the end of 1996, they had designed and started to manufacture their first product, the OS-214 barcode printer. But to their dismay, the printer would not sell. Question marks began to appear as the six partners discussed whether it was a sales problem, a marketing problem, or if there was something wrong with the product. "It turns out the number one reason was that no one dared to buy anything from a new company, which we found out two years later," explained Carlson.
While they could master the technical aspects of the product, they discovered they had neglected certain needs of the market. One end-user requirement they had overlooked was the use of 2-inch and 3-inch labels, which they soon remedied with an adjustable guide. But product and market information were in short supply and the partners were too busy to attend trade shows. It was like the Chinese proverb: "Every industry is a mountain to climb," which means it always takes time to learn any new business.
The OS-214 eventually became the company's best selling printer, as it is today. But during that first year, Argox was a question mark with a product that wouldn't sell.
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