#Welcome to the Jungle!
26-Oct-94 21:18:31
Sb: #Welcome to the Jungle!
Fm: Kevin C. Gibson 75313,620
To: James M. Murphy 71165,1321
Hi ya James Murphy. Long time.
While lurking hereabouts recently, I caught this thread
from you to James Coulter.
JM > I'd tell you to save your money and
JM > wait for the Render/Garden/Farm/Jungle to hit the streets. <g>
JM > That would be the most economical means of putting together a very
JM > powerful set of optimized Pentiums with less investment in hardware,
JM > ram, and H.D. space…plus it would be optimized to outperform anything
JM > else with a similiar hardware/software configuration.
Render Jungle? Ya know, I try to keep up J.M.
So what's this Render _Jungle_ you're on about?
Is this a new product or a feature of Rel. 4 ?
JM> I love 3D Studio and the people that work with the product,
JM> I love working in 3D Studio on projects and creating all this neat "Stuff"
JM> I love the unbelievable fast pace of this industry.
JM> Business would be much better if people were content to have a level
JM> playing ground.
James, Sounds like a mantra that's been running through my head.
You been reading my mind?
Fact is, I've thought about you recently. Interesting developments taking
place. Autodesk is doing a major restructuring of the dealer channels.
You've been a big advocate and cheerleader.
I trust you'll pull through the changes.
Lower margins / Higher quotas.
A push through mail-order houses and educational channels.
A multimedia resource guide in the box stripping away from your add-on sales.
Geographical limits on the reach of your advertisements.
Loss of a dealership if you engage in a sale that's not "face-to-face."
Medallion dealers who participate in co-op dollars while others do not.
And a mail-order house that acts in defiance with apparent impunity.
Seems like the writing is on the wall. Even though it's not consistent.
I've asked for some answers quietly behind the scenes,
but I haven't gotten any replies.
For years I've been a big cheerleader and promoter of the great work that
has issued forth from Autodesk, the Yost Group and Jim Kent.
Autodesk has impressed me so much that I've considered becoming a dealer
even though I originally became involved with the company's products as
an artist and video producer. But from what I can discern, it
appears that part of the new "plug-in" environment is the ability to
plug-in and unplug dealers. Unless you have the resources of the big
distribution, volume / discount houses you're going to find the
"playing field" difficult to negotiate. It is __not__ level…..!
Smaller dealers aren't the only ones facing a struggle.
Autodesk is facing some major challenges in the marketplace.
Intergraph, who managed to sneak a couple of pages of advertising into
the Autodesk Multimedia Resource Guide that ships with 3D Studio,
is now offering a full-blown package of Microstation (no hardware lock)
for $195! to students through bookstores at colleges where the program is
taught. With Caligari trueSpace, Microsoft? and other software vendors
chipping away at our favorite company, the landscape is looking trickier
everyday. 3D Studio still rules! For now.
Hard-core devotees will argue that nothing can touch 3D Studio.
But a company has to remain economically viable in order to continue
to ship product. Autodesk is being attacked on all sides, including
right here in this forum. When you're number one, everybody wants
what you've got. And they'll fight you for it.
Don't expect Autodesk to take it resting on their laurels.
Autodesk contemplated marketing their products in a number of ways, before
they decided on establishing their authorized dealer channels.
But they decided. Now the marketplace demands they re-think that decision.
Everybody is capable of making questionable decisions.
It doesn't stop us from making decisions. We just need to re-evaluate every
now and then. I'm sure Autodesk is looking twice at the Resource Guide.
Dealers have been expected to attend annual training and support the product.
Yet the revenues they believed they would generate from add-on sales when
they bought-in, continue to erode as mail-order companies and manufacturers
market direct to the end-user.
The lower prices are benefitting the end-user up front, but leaving them
high and dry when they start looking for support. Though some of the
complaints about dealers not being able to support the products they sell
are justified, even the knowledgeable dealers, such as yourself, who can and
do support the products they sell are going to have to deal with the imapct
of competition. New alliances will result. New forms of dealerships will
emerge. Look for companies with centralized technical support backing
remote sales offices with minimum overhead as one alternative.
The definition of "employee" will expand to take on new meaning.
This is all part of the change, the mutating landscape.
I expect some of these radical shifts in the marketplace will produce a
substantial number of victims. The aforementioned Resource Guide
will "disappear" from some boxes of 3D Studio before they reach the
consumer. Advertisers will complain. Dealers will complain.
End-users will continue to complain.
The transience demands that you remain flexible and think on your feet.
Let's hope Autodesk recognizes the friendly faces in the midst of fire.
Keep plugging, Jim. Ya got my vote.
Good guys can and do win. Not always. But they can.
Even in the Jungle.
Kevin Gibson
Animation Nation <tm>
P.S. I'm getting ready to plunk down a chunk of change for a new system.
Feel like making some recommendations with little chance of
making a sale? <BFG> Best wishes.