"I have no choice but to pull the order from someone else who doesnt mind waiting."
Not telling someone upfront that their purchase is going to be used to fund the completion of someone else's unit is definitely cause for concern if not outright fraud/ponzi.
From your website, "SOME ORDERS CAN TAKE 8 TO 12 WEEKS. BE SURE YOU CAN WAIT, BEFORE YOU ORDER. WE WILL NOT GIVE REFUNDS BASED ON THE WAIT."
Sorry, but business doesn't work this way. People can issue a charge-back on their credit card through the bank for up two years later. I don't see how anyone that has waited 4-8 months. (16-32 weeks) will have issues getting a refund whether or not you agree to it. You have clearly gone against your advertised terms of delivery.
- I would suggest you switch to some sort of bulk buy model, where if enough people sign up you order parts.
- Or take out a small business loan so that you can order enough inventory to have on hand to meet demand.
- Or double your prices so that your profit is enough to fund the next one built. etc..
I wonder how much of the delay is due to availability of refurbished medical supplies though? I would imagine they are auction style items with multiple bidders. This might not be a factor, or it may be a huge factor. No idea.
You may have a great product but if you piss off enough people with admitted practices like this...new customers like me will be very hesitant.