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Junior Varsity
X32 Discussion
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<blockquote data-quote="John Roberts" data-source="post: 60272" data-attributes="member: 126"><p>re: X32 Discussion</p><p></p><p></p><p>A useful thing to keep in mind.</p><p></p><p>I first heard that explained as "more is always more" ,,, but this simplistic analysis ignores the opportunity cost from diverting engineering resources away from more profitable activity. Engineering resources are not a variable cost or commodity*** that can be easily expanded and contracted as needed, but more of a corporate asset that must be cultivated and managed for best return (Silas' ROI comment) and grown over time around a core, or several core engineering groups. </p><p></p><p>Listening to what the man himself has said, I expect him to focus his near term engineering effort into turning this X32 platform technology into several other derivative SKUs that could fall out of this design effort and would be more profitable than chasing some marginal incremental sales for the X32, that seems to already be selling quite well. </p><p></p><p>So more is more, but even more is even more. </p><p></p><p>The visible evidence suggests that they have shown good business sense so far. </p><p></p><p></p><p>Now you've opened up another can of worms. This new lower price point will appeal to many weekend warriors and sound guys who do not actually make a living from selling their sound services? I'll let Silas explain that calculus. </p><p></p><p>JR</p><p></p><p>** there are some recent trends in "commodity" like contracting out of specific engineering design projects. I remain more than a little apprehensive about how effective this could be, where the out of house engineering team first needs to be brought up to speed, and then cut loose after that time/effort investment. Ironically the Android application may actually be a narrow enough unique technology project that could make sense to be farmed out to contract engineers. After all it's only money***. </p><p></p><p>*** money, or capital, is also a finite resource. While it looks like Uli has pretty deep pockets, nobody has infinite capital. I suspect he has a great deal of capital already tied up in things like this new product (WIP, inventory on the water, etc), and new buildings, and new hires. The dealers don't pay in advance, or even at purchase, like customers do, so dramatically increasing sales require more working capital. </p><p></p><p>Now that's how business works. <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":-)" title="Smile :-)" data-smilie="1"data-shortname=":-)" /></p></blockquote><p></p>
[QUOTE="John Roberts, post: 60272, member: 126"] re: X32 Discussion A useful thing to keep in mind. I first heard that explained as "more is always more" ,,, but this simplistic analysis ignores the opportunity cost from diverting engineering resources away from more profitable activity. Engineering resources are not a variable cost or commodity*** that can be easily expanded and contracted as needed, but more of a corporate asset that must be cultivated and managed for best return (Silas' ROI comment) and grown over time around a core, or several core engineering groups. Listening to what the man himself has said, I expect him to focus his near term engineering effort into turning this X32 platform technology into several other derivative SKUs that could fall out of this design effort and would be more profitable than chasing some marginal incremental sales for the X32, that seems to already be selling quite well. So more is more, but even more is even more. The visible evidence suggests that they have shown good business sense so far. Now you've opened up another can of worms. This new lower price point will appeal to many weekend warriors and sound guys who do not actually make a living from selling their sound services? I'll let Silas explain that calculus. JR ** there are some recent trends in "commodity" like contracting out of specific engineering design projects. I remain more than a little apprehensive about how effective this could be, where the out of house engineering team first needs to be brought up to speed, and then cut loose after that time/effort investment. Ironically the Android application may actually be a narrow enough unique technology project that could make sense to be farmed out to contract engineers. After all it's only money***. *** money, or capital, is also a finite resource. While it looks like Uli has pretty deep pockets, nobody has infinite capital. I suspect he has a great deal of capital already tied up in things like this new product (WIP, inventory on the water, etc), and new buildings, and new hires. The dealers don't pay in advance, or even at purchase, like customers do, so dramatically increasing sales require more working capital. Now that's how business works. :-) [/QUOTE]
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