From dougsloan@neo.rr.com Thu Jul 15 09:53:32 2004
Subject:Re: New B-3 Price- was, Musings on the XK-3 brouhaha / lack of posts

OK - after reading through subsequent discussions as to whether the
New B-3 is a reasonable price, several points have been made on a very
subjective concept.

I maintain that R&D cost has little to do with reasonable. Consumers
do. One consumer may perceive $100,000 to be reasonable for a new B3
and buy it. More consumers will judge it reasonable at $20k, and
still more at $2k. If they find enough buyers at $20k to cover their
variable and fixed costs, including R&D recapture and target profit,
then good for them. If too many of these consumers balk and say they
can get a very nicely restored B3 for $10k and can't justify paying
$20k, they may have to cut expenses, including payroll or else go
under. Those consumers who balked at $20k aren't going to care if
HS's breakeven point, driven in part by R&D, requires $20k. It may be
reasonable for HS to ask $20k, but it is not reasonable, in these
consumers minds, to pay $20k when they can get a mint restored one for
thousands less.

Using general inflation as a measure, as flawed as it is, is an
interesting starting point as to what is reasonable to expect the
market to pay, nothing more and nothing less. Its just one test of
reasonable in the mind of what consumers may perceive, because it
relates to demonstrated accepted prices in another era. Although the
responses varied, it appears that $20k for JUST a B3 in 2004, is more
than JUST a B3 cost in 1973, adjusted for GENERAL inflation. Yes,
that is a very flawed comparison, but given that competing consumer
electronics, including most electronic musical instruments, in turn
including most competing clones that sound much closer to a B3 than
the competition did in 1973, ... it is reasonable to expect that MANY
interested buyers would conclude that $20k is NOT reasonable for them
to PAY, even if it is reasonable for HS to ASK, given their cost
structure.

Now to the XK3 ... I am 100% happy with my Windows version EVB3, very
nicely controlled with a CX3 via MIDI-OX. There is very, very little
room for improvement, which is why, for me, I couldn't justify paying
more than a couple hundred $s for a XK3, even if it did everything my
rig does, plus a few other bonuses. To the extent it has a major flaw
that my rig doesn't, I wouldn't even trade it straight up, and that is
assuming it sounds equivalent to my rig (which indeed I would bet it
does based primarily on posts, and also a couple of MP3's). That flaw
is the lack of split V/C. To me, this is like a big Mercedes without
windshield wipers. It might be slightly superior overall to, say , a
BMW most of the time, but a such a bitch when it rains. If you're
musical tastes don't require split V/C (think Tucson), it's a
non-issue. If you like a lot of straight-jazz for instance (think
Seattle, or even Cleveland), you better have wipers! I doubt that
given what they put into the XK3, including 93 adjustable very
authentic-sounding virtual tonewheels, they could have easily put in
one more parameter to split the upper/lower C/V without much more
cost. But in the end, their cost isn't what matters to me. Its their
price and what they provide that determines what I am willing to pay.

S__t! I made a couple of observations about HS that weren't
flattering. I sense that some of you will conclude that I am ripping
HS. Wrong! Or that I am jealous. Wrong! I just think it is very
reasonable for many CLONEWHEELERS to feel that $20k for a new B3 is
unreasonable for them to pay. What HS charges is entirely up to them.
And if they can find enough churches to pay that, I'm happy for them.
Really, its nice to see a modern version of the classic carry the
torch. At the same time, a lot of Clonewheelers are justified in
viewing the new B3 prices as totally unreasonable for their lot in
life. As for the XK3, I just see little to gain compared to my
awesome rig, and something serious to loose. Believe me, if a friend
was interested in buying a hardware clone, I would tell him/her to
make sure that they check out the XK3 before they buy anything. If
they said they had to order something today, I'd say order the XK3 -
but make sure that you will be able to live with that one
minor-yet-serious flaw.

Regards,

Doug