Group Buying?

How exactly do group buys work?

Are we all putting money together and sharing it or something? I dont see how this works... :-?

This is how group buys work:

1. Someone contacts a large manufacturer or reseller and asks for prices, things are way cheaper when you buy a few hundred of them
2. Because they don't have the large outlay to buy everything at once then they post here and everybody chips in and wallah - you have your cheap laser parts.