All companies use a formula that basically says the sell price is X times the cost to

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paullypj

Inspired
Quote Originally Posted by FractalAudio View Post
All companies use a formula that basically says the sell price is X times the cost to make the unit. X is known as the "multiplier" (oddly enough). Our multiplier is actually quite low. The reason I can set the multiplier low is because we sell direct, our overhead is low (I own the office space rather than rent), we have no loans and I do the work of five people.


I dont think most of you are getting "it" That is :the situation FAS is in, And I might not be getting it either but here are some economic principals garnered from econ 101.

And this is only a guess

1) Cliff has to be careful with his multiplier if it is to high and he is selling a lot of units the big companies with unlimited resources will seek to enter this market. (Rack mount gear has been dead since the 80's and maybe cliff's thing will end up being the new thing and then all bets will be off. all the patents and copy rights wont hold up to fat R&D pockets that the big boys have.) They will tear his unit apart and reverse engineer it. If they are not doing so already.

2) surely they are waiting to see how he does before they take the risk and enter this market we are the early adapters there is a lag time be fore the non believers will start to buy axfx products.

3) Right now the fact that cilff is small scale , has small multiplier, owns the manufacturing facility and is marketing directly to the consumer (carvin has been doing it since the 80's) all the rest... are Fractals barriers to entry.

4) In time he will be approached by bigger companies to sell out. Good for him bad for us. Who knows maybe he will hold and do what carvin has done.

5) I think I can say this with certainty, Cliff has reinvented the wheel and who knows where this is headed , industry shake up no doubt. Cliff is doing to the guitar amplifier industry what the internet did to the global economy.

6) He has to play his cards right and be smart because all the big companies will jump on the band wagon as soon as they smell the money.
 
This is a reply to my own post Screw the fact that cliff might have made the 1st gen simi obsolete. I think these axfx products will leave a very very long list of products obsolete. I have an engl midi tube pre amp and mesa boogie 2 100 and I am like whats the point Im not selling the stuff... but I would not have bought it if I had known about fas. The question is how many more will say the same thing FAs or mesa...Fas or marshall or fas or...fender or...
 
They can reverse engineer to their hearts content. The genius and $$ is in the algorithms IMO. Good luck getting those! :)
 
mickdoo22 said:
Exactly what aren't we "getting"? Not much insight in your post. Please educate us more.
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This came from another thread and people were complaining about the pricing...They were complaining it was either to high or to low. I hear that everyone is all in a tizzy over how great the products are i just think its much bigger than just another great product. I think it will change the industry its just an opinion I could be wrong.

And I am guessing that you dont think that the fas products have the potential to revolutionize guitar amplification industry from the ground up ( I am using the word revolutionize).
 
I can't think of ONE product that has gotten better (or even stayed as great) when the original company was bought out by a larger company.
 
cob666 said:
I can't think of ONE product that has gotten better (or even stayed as great) when the original company was bought out by a larger company.
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Thats why I said I hope cliff holds out But his product is too damn good for it not to create a stir in the industry.
 
I've never heard of a customer complaining about something they're buying being too cheap.

You guys are insane.

Sent from my SPH-D700 using Tapatalk
 
Old news.

The axe-FX already IS the big thing, and it's also the NEXT big thing as well.

If the "others" where going to release a competing product, they would have done so already, they've had over 5 years.

Sad thing is, I think many of the "others" already believe they have products that can directly compete.

But I guess if you hype up your products long enough, you start believe in your own crap.
 
Guitar-Tiz said:
Old news.

The axe-FX already IS the big thing, and it's also the NEXT big thing as well.

If the "others" where going to release a competing product, they would have done so already, they've had over 5 years.

Sad thing is, I think many of the "others" already believe they have products that can directly compete.

But I guess if you hype up your products long enough, you start believe in your own crap.
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U sure about that? If a company like TC electronics set their minds and money to it they would get it done. The question for them is how much can we make if we spend x (in other words what would be their ROI)

And right now I think these big companies might not think the market is big enough for them to invest x to create a truly competitive product. It will only pique their interest if they think they can make money.

The other thing is that FAS has not even begun to tap into the potential market share for the simple fact that they lack the distribution and advertising resources to get the product out there.

this is not a criticism I m very glad that the owner of this company is testing is own products and if you call at the right time you can actually get cliff on the phone. I dont want every one else to have this product only the people who truly appreciate the risk and the hard work this guy has done should own one. Am I making any sense. This is a compliment to cliff.
 
paullypj said:
U sure about that? If a company like TC electronics set their minds and money to it they would get it done. The question for them is how much can we make if we spend x (in other words what would be their ROI)

And right now I think these big companies might not think the market is big enough for them to invest x to create a truly competitive product. It will only pique their interest if they think they can make money.

The other thing is that FAS has not even begun to tap into the potential market share for the simple fact that they lack the distribution and advertising resources to get the product out there.

this is not a criticism I m very glad that the owner of this company is testing is own products and if you call at the right time you can actually get cliff on the phone. I dont want every one else to have this product only the people who truly appreciate the risk and the hard work this guy has done should own one. Am I making any sense. This is a compliment to cliff.
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I don't think there's much profit for a large company to make an axe competitor right now because they'd have to put money into r&d and what not and if the expenses put into a product. vs product price and how well it stacks up vs axe 1&2 and overall sales don't exceed than what they invested into, It's a failure and they get laughed at, lose money and reputation and no big company wants to lose ANY money. Or anyone for that matter.
 
They will tear his unit apart
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We were the club house band for the local motorcycle club (a real one).Well, I knew these biker chicks at this gig we used to do...you know, the kind of chicks you tell to "put it back on". Girls, at some point in your life you have to realize that time and gravity always win. It doesn't diminish love, but this wasn't love; it was rock'n roll. This one chick called "Alabama", worked on a horse ranch, and by all accounts she could 'handle' a horse, was sitting right in front of the stage at an outdoor gig. Unlike the others, time had been more kind and the rigors of ranch work had been beneficial also. At least it appeared so from the stage. They say she is mostly Indian and the long jet black hair bears witness, as did an enthusiasm to party hard. While we were jamming out ZZ’s “nationwide”, she was grabbing her crotch with one hand and man handling a bottle of jack with the other when all of a sudden she turns her head to the side and power pukes. With out missing a beat (neither did the band) and totally ignoring the outraged people beside her, she screeches a "hell yeh, M...F..." and washes it all down with another swig of that insanity that has a black label on it. Later, when "Alabama" passed out on the couch in the clubhouse, one leg over the back and the other dragging the floor, the question of does the carpet match the drapes took on dimensions it was never meant to have. Yes, Alabama wore a short skirt and nothing else under it. Now, as 'we' fall prey to lustful curiosity and position ourselves at the precise angle to best view the cootch...or what ever it was, 'we' all feel the urge to power puke followed by a resounding "what the f...". Curiosity killed the cat and left an indelible image in my mind that haunts to this day. I believe I have seen the cat that curiosity killed ...stuffed between Alabama’s legs. It might have been a cat, I don't know. What I do know is… “That girl could've have torn my unit apart”... true story #7.

Oh yeh, economics…right, sounds good.
 
guitarmike said:
We were the club house band for the local motorcycle club (a real one).Well, I knew these biker chicks at this gig we used to do...you know, the kind of chicks you tell to "put it back on". Girls, at some point in your life you have to realize that time and gravity always win. It doesn't diminish love, but this wasn't love; it was rock'n roll. This one chick called "Alabama", worked on a horse ranch, and by all accounts she could 'handle' a horse, was sitting right in front of the stage at an outdoor gig. Unlike the others, time had been more kind and the rigors of ranch work had been beneficial also. At least it appeared so from the stage. They say she is mostly Indian and the long jet black hair bears witness, as did an enthusiasm to party hard. While we were jamming out ZZ’s “nationwide”, she was grabbing her crotch with one hand and man handling a bottle of jack with the other when all of a sudden she turns her head to the side and power pukes. With out missing a beat (neither did the band) and totally ignoring the outraged people beside her, she screeches a "hell yeh, M...F..." and washes it all down with another swig of that insanity that has a black label on it. Later, when "Alabama" passed out on the couch in the clubhouse, one leg over the back and the other dragging the floor, the question of does the carpet match the drapes took on dimensions it was never meant to have. Yes, Alabama wore a short skirt and nothing else under it. Now, as 'we' fall prey to lustful curiosity and position ourselves at the precise angle to best view the cootch...or what ever it was, 'we' all feel the urge to power puke followed by a resounding "what the f...". Curiosity killed the cat and left an indelible image in my mind that haunts to this day. I believe I have seen the cat that curiosity killed ...stuffed between Alabama’s legs. It might have been a cat, I don't know. What I do know is… “That girl could've have torn my unit apart”... true story #7.

Oh yeh, economics…right, sounds good.
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lawlz
 
cob666 said:
I can't think of ONE product that has gotten better (or even stayed as great) when the original company was bought out by a larger company.
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Line6 bought X2 and at least from my point of view the Relay series is better than the X2 wireless units.
 
guitarmike said:
We were the club house band for the local motorcycle club (a real one).Well, I knew these biker chicks at this gig we used to do...you know, the kind of chicks you tell to "put it back on". Girls, at some point in your life you have to realize that time and gravity always win. It doesn't diminish love, but this wasn't love; it was rock'n roll. This one chick called "Alabama", worked on a horse ranch, and by all accounts she could 'handle' a horse, was sitting right in front of the stage at an outdoor gig. Unlike the others, time had been more kind and the rigors of ranch work had been beneficial also. At least it appeared so from the stage. They say she is mostly Indian and the long jet black hair bears witness, as did an enthusiasm to party hard. While we were jamming out ZZ’s “nationwide”, she was grabbing her crotch with one hand and man handling a bottle of jack with the other when all of a sudden she turns her head to the side and power pukes. With out missing a beat (neither did the band) and totally ignoring the outraged people beside her, she screeches a "hell yeh, M...F..." and washes it all down with another swig of that insanity that has a black label on it. Later, when "Alabama" passed out on the couch in the clubhouse, one leg over the back and the other dragging the floor, the question of does the carpet match the drapes took on dimensions it was never meant to have. Yes, Alabama wore a short skirt and nothing else under it. Now, as 'we' fall prey to lustful curiosity and position ourselves at the precise angle to best view the cootch...or what ever it was, 'we' all feel the urge to power puke followed by a resounding "what the f...". Curiosity killed the cat and left an indelible image in my mind that haunts to this day. I believe I have seen the cat that curiosity killed ...stuffed between Alabama’s legs. It might have been a cat, I don't know. What I do know is… “That girl could've have torn my unit apart”... true story #7.

Oh yeh, economics…right, sounds good.
Click to expand...

It's the end of a long and terrible day at the office, I've had a ridiculous headache all day, and now I am very, VERY confused. :lol
 
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