From rgafner@comcast.net Mon Aug 28 14:46:28 2006
Subject:Re: Roadbox III - Is it too expensive....?

A few thoughts,

the old method of business involved advertising in publications that
can be become pricey, endorsers can be a source of unsold units.
Distribution of product through retail outlets with built inventory
setting on the show floor means lots of units made and either still
owned by SVM (like a consignment) or purchased and owned by a retail
outlet. BTW, eg. Restoration Hardware got into big financial
trouble some years ago when they tried to have many stores all over
the US and then stock them with nearly every product. There was lots
of merchandise owned by Rest Hardware setting in stores not being
sold. The alternative is to have one piece of a dining room suite
and then order the other parts allowing for build time. And then ship
it.

Instead, the new century rewards a new ( why would this be new?)
business model where ongoing innovation, allowance for customization,
integrity of the built product, forward thinking communication, a
higher respect for customers, word of mouth endorsements by the
users AND a very competitive price will tip the scales to the new
business model. This should be no surprise to harried consumers who
are tired of products that don't measure up from companies that are
unresponsive who put you on hold or force you into an answering
queue. And then remain silent. The market tells us all where to
go. The challenge for manufacturing is how to "read" it.

These are different times for manufacturers. Assembly lines in China
are for high volume (numbers) products where customization options
disappears. Tooling up and training an assembly group adds cost for
short production runs. Building to a higher standard, with inventory
sold before it's constructed, is a legitimate business model as
well. All this with little or no print advertisement, no box store
affiliation and still a powerful force in the marketplace. Niche as
it is. Small is adaptable and can change direction quickly which
might be an asset. Large has inertia and momentum which in a rapidly
changing marketplace might become a liability.

You go Steve. You are shaming the larger manufacturing universe with
your attention to detail, attention to customers, attention to price
point, adherence to promises made about upgrades, new products to
meet needs and at appropriate prices.

RG

On Aug 28, 2006, at 2:44 PM, JdH wrote: