On Dealers
12-Jan-94 19:53:03
Sb: #75773-On Dealers
Fm: Conrad Stolze 72110,1263
To: David Cohn, CADalyst 73417,167
Yes, I was talking about the "Chinese Firedrill".
>>Just a thought.<<
Well, I must say a pretty well composed one! <G> I agree on the fact
that Autodesk did not start out with a dealer channel in mind, and
that this channel has become a "liability" in the sense of an
immovable mass (inertia you would call it! <BG>).
BUT, I must disagree with one basic thought of your response, the idea
of CAD consultants. While I agree that it would be possible for a
"good dealership" to maintain a profitable existence as an
integration consultant. With margins the way they are now, I think
several dealers (especially those on this forum, including myself)
would admit that a significant portion of their financial resources
comes from consulting services. I do feel that this overlooks one
invaluable asset of the dealer channel – Marketing.
I think all dealer have felt the "firedrill" effects recently. You
should be the one that receives AutoSurf R2, AutoCAD ADE, AutoVision,
and 3D Studio R3 in a three week period! Talk about a learning
curve! It was the dealer channel, however, that bore the
responsibility for learning, demonstrating, and SELLING these
products. Autodesk could not have provided the resources required to
generate the early market interest and success that these products
have enjoyed. People may buy a wordprocessor or spreadsheet
mailorder, but they want to "get their hands on" products from which
they generate their livelyhood. Let me explain…..
I think you may have struck a personal cord on this one, because of
my experiences as a frustrated end user. I was not always a dealer,
I am an Architect by trade (you are also, aren't you?) and was the
Manager CAD Services and a Project Manager for a local Wichita firm
for seven years. My frustration was that I was in charge of making
decisions regarding software that would ultimately affect the bottom
line. It didn't matter whether the software was $50.00 or $5,000.00,
I had to evaluate its potential cost-effectiveness. The most
expensive software the firm ever purchased was AutoCAD, but it was
the easiest decision I had to make. Why? The dealer channel!!! I
was able to go to a local dealership and perform a "detailed"
analysis on AutoCAD before we purchased.
The final point I would like to make deals with geography. If
Autodesk would make a move away from the dealer channel and toward a
wider distribution channel, who would carry the torch for "marginal"
market areas such as Wichita. "Resellers" in these areas would not
have the resources to sponsor the seminars and other events that the
current "dealers" do. I feel that Autodesk would suffer greatly in
these "outlying" areas, and that would ultimately have an negative
impact on their gross revenues.
Well, just a return thought <BG>!