How Does Fractal Make Money...

socalguitar said:
How does Fractal make a profit? I don't know...maybe he can build a axe fx for 1000 dollars and sell it for 2300?
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I doubt his margins are that high. And my original post was in error. Fractal isn't out of stock. They simply don't have enough to meet immediate demand. That tells me they are doing things right.
 
Well they just got nearly $800 bucks from me for a new MFC-101. I have been waiting to get my hands on one for over a year.

I got one now...yeah!!!!!!!!!!!!!!!!!!!!!! :anonymous:
 
Got my money not once, but twice. That doesn't happen very often and when it does I'm rarely this satisfied....especially years later.

But to the more serious side of the discussion I think that it has a lot to do with a lack of overhead costs. Not a ton of employees, no shareholders, no bean counters pushing R&D into stupid directions and the biggest thing....instead of retooling a factory every year to introduce a new improved model he just builds a bullet proof, legacy resistant platform and continuously updates it to keep it fresh. There is a lot to be said for not having tons of last years stock on warehouse taking up space (and cost) and then having to blow them all out in order to make room for the next incrementally improved disposable piece of shit (no disrespect to companies who sell incrementally improved disposable pieces of shit intended).

I mean if you think about it he reduces loss and wasted resources by maximizing efficiency by just meeting the needs of the market rather than trying to take the whole damn thing over by overgrowth and saturation. That means quality and vision remains intact. That means repeat customers.

But at the end of the day the damn thing just sells itself.
 
People also tend to forget how small Fractal really are. It's a micro-boutique direct-to-consumer company with virtually no retail distribution and world wide distribution is handled by companies that you could count with one hand.

Yet other companies - ones that have world-wide retail distribution - have been chasing since 2006. And still are, trying to create the illusion that Fractal is the evil empire. Yet, it's just a handful of people.

Supply and demand is a bitch; but frankly I'm a longtime sucker for a David vs. Goliath that sticks to their guns and does it their way.

No one's done what Fractal is doing the way Fractal is doing it. That's saying a lot, frustration with product availability or not.
 
Scott Peterson said:
People also tend to forget how small Fractal really are. It's a micro-boutique direct-to-consumer company with virtually no retail distribution and world wide distribution is handled by companies that you could count with one hand.

Yet other companies - ones that have world-wide retail distribution - have been chasing since 2006. And still are, trying to create the illusion that Fractal is the evil empire. Yet, it's just a handful of people.

Supply and demand is a bitch; but frankly I'm a longtime sucker for a David vs. Goliath that sticks to their guns and does it their way.

No one's done what Fractal is doing the way Fractal is doing it. That's saying a lot, frustration with product availability or not.
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I was frustrated. Now I'm as happy as a pig in shit.
 
Nobody is doing what fractal does is absolutely correct. I first was drawn to the ultra when I was changing up my rig. I was considering multiple analog pedals, even tide units, g system, gt-10, not line 6 but of course a competitor...etc. once the ultra arrived I was blown away. It does everything these units does and better for the most part.


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I've been a working musician for over 30 years. I have had artist endorsements from other companies, which meant low (or sometimes even zero) cost on equipment. I got on the Fractal Audio wait list, and paid full price for my AxeFX II XL + MFC-101 Mk III, like every customer. I'm delighted with my new setup. It was completely worth the money, and I'm happy to be a supporter of the company. I think of it as making an investment in them, which pays dividends in terms of firmware updates and amazing customer support. When you buy Fractal Audio gear, you get a top-notch product with huge benefits.

If you have ever been an artist endorsee, you have some idea of the preferential treatment this gets you, and believe me: it's damned nice. Also believe this: I'm just a "regular old" customer of Fractal Audio, and their "regular old" customer support is on par with the best artist endorsee treatment I've ever had*

* OK, so FA hasn't ever sent me a lovely case of wine as a tour kickoff gift. But then again, THAT company hasn't ever updated the firmware in their $1000+ "top of the line" processor that I've owned for over ten years. I'll gladly take Fractal Audio's awesome customer service and stock the wine fridge on my own. :)
 
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