[sdiy] Re: [AH] Good read

[Steve Begin]

That was pretty much the same thing as what I was going to write, but I decided against it since I have no experience whatsoever in the field of manafacture and/or sales.  :)  Good to see I wasn't too far off.

I think it is unfair to tell the manafacturers that they are to blame for the developmental stagnation of the modular synth, I think if there was a large demand for unconventional modules, manafacturers would be able to justify the cost of developing them.  
Its also think it is unfair to imply that manafacturers are just sitting on their profits, getting rich off of designs they learned from textbooks in the 60s.  I think if the market could support the development costs of non-standard modules (meaning the cost of development would be paid off through sales in say 5 years) they'd be out there.  It's not reasonable to ask somebody to invest money into something that wont turn a profit.  

> Steve Begin


-----Original Message-----
From: Paul Schreiber [mailto:synth1 at airmail.net]
Sent: Tuesday, August 06, 2002 10:27 AM
To: Peter Grenader; analogue heaven; Synth DIY
Subject: [sdiy] Re: [AH] Good read


Although the article doesn't really say all that much, here is my take from a manufacturer's
slant:

1) It's getting harder and harder to even *find* people that are good (if not great) analog
design engineers

2) Analog design is more of a "system" challange, and requires a huge amount of mundane tasks.
Parts ordering is a good example.

3) It takes a large $$$ investment to provide the "plain vanilla" modules just to get up and
running in the beep and boop department, then you have to support the "esoteric" stuff that may
sell 30 a year at best. You have to charge more for them, when in turn reduces the TAM (Total
Available Market). The manufacturers then have to decide how to balance the boring VCA/LFO/EG
sales with the "SuperDuper WiggleMarfer" that appeals to 16 people.

4) End-users (NEVER the manufacturers) protest that "all you care about is the money" and "what
about the advancement of the art"?  Well, you have to *stay in business* to *advance* in the
first place. How do you do that? By sell the boring, 30yr old "technology" to generate a cash
flow that *enables* the other stuff (the famed "loss leader"). However, if your module line-up is
narrow from the start, or if your profit margins are low, then you have to resign yourself to the
fact that your are just happy to be in the game. This is where MOST of us are (including me).
Just happy to be able to be on the field.

5) Electronics is EXPENSIVE. Sorry, if you think differently. I spent $157,000 last year on
*parts*. Thankfully I generated slighty more in sales, with the emphasis on SLIGHTLY. Guess what?
My 2 most "esoteric" modules were the 2 at the bottom in sales. The #1 seller: EGs.

6) I and the other folks are always open to suggestions. If you can think it up, I can design it.
You may not like the COST, but that's the issue, isn't it :)

Paul S.