CompuServe Thread

The Dealer's Dilemna

2 messages in this thread
#131937From: Kevin C. GibsonOct 28, 1994 10:06 PM
Hi ya John, I've been meaning to call and thank you for the free subscription to Morph's Digital Outpost. In addition to being a real treat, I think it's an excellent public relations ploy. Tell me something Mr. Foust. What exactly is Interchange Plus? And do you guys at Syndesis have any other products available now or in development? ( Insert Advertisement Here ) Regarding the MM guide, here's what you said: JF > Considering the insanely high advertising rates for that, JF > I'm going to be p-o'd if it's going to be yanked, JF > either officially or un-officially by dealers who don't like what's JF > inside. JF > As for mail order sales stealing from walk-in dealer sales, JF > hey, as you said, it's the way the software business has been turning. Okay John. Read again, the words above, that you wrote. Let me get this straight. A dealer spends $9,000 or more to become an authorized Autodesk representative. They spend more on buy-ins for related hardware and software dealerships. They allocate expensive hardware to demonstrate all of these products. They hire sales and technical personnel to make the business go. ( Autodesk requires they have at least one employee. ) They spend lots of money on yellow page ads and other advertising. Throw in a little for the overhead, you know, office space, telephone lines, fax machines, signs, electricity, etc. They are required to attend training once a year to retain their dealership. They travel to trade shows to meet with people such as yourself and stay abreast of the latest developments. They are limited to a geographical area wherein they can market their wares under the threat of loss of their dealership if they go beyond an area they can serve through face-to-face sales. They support user groups in their vicinity. They belong to civic organizations that support the local community. You know, like the Chamber of Commerce, Kiwanis, Rotarians, etc. Some even run a BBS. A potential customer comes in. The dealer helps them identify solutions that meet their specific needs. The dealer spends time demonstrating the product. Answers technical questions. Puts together a system recommendation. And offers the package at a price he considers fair and will allow him to keep his doors open. And you expect them to hand the customer advertising for a source where he can get everything 20% cheaper??? from a remote location that has no interest in the lifeblood of his community?!! When he signed on, he expected to sell, not only 3D Studio, but the products that 3D Studio users need. Why would he cooperate in handing over those sales to a mail-order firm? ( I am not referring to Syndesis or distributors who have programs in place to protect the dealer. ) John, if you want to get p-o'd, you may have a right. But don't blame the dealer. Maybe you should think this through. Even if the software industry is turning this way, I don't think you can expect the dealers who have brought it this far, to stand by and let it roll over them without at least _trying_ to keep food on the family table. I'm not taking sides on this, John. I know there are some dealers who haven't lived up to people's expectations. ( "Real stinkeroos" comes a whisper from across the way. ) And I know that some people will always shop price, even when they don't really understand the true costs involved in making their purchase. There's a place for Syndesis. Dealers aren't everywhere. But I have plenty of friends around the country who are dealers who have promoted and supported the products, who are knowledgeable and fair. My comments were addressed to one of them. Some dealers live in small towns. They can't possibly push the quantities that dealers in the cities can. They knew that getting into the program. They made career choices based on their optimism and their bank account. The waves of change that are sweeping the landscape aren't distinguishing between the "good" dealers and the "bad." It just may be up to the people in the lifeboats to extend a hand and pull a friendly face to safety. My remarks were partly motivated by the fact that I have become deeply concerned that there's been far too much negativity floating around in the forum. My message "Welcome to the Jungle" was an attempt to put things into perspective. At least from this person's vantage point. I have also tried to inject a little entertainment and humor here and lighten things up. Animating is a real kick for me. A natural high. And chatting with fellow animators is sometimes even more exciting. But I must confess, my humor pales in comparison to the wit displayed by the likes of Mr. Martin Foster and others who have had me laughing out loud as CompuServe deducts a few more dollars from my VISA account. Let me get one more thing straight. I come to the Autodesk Forum because their product, Animator Pro, has allowed me to make a living doing what I did in kindergarten. Cutting, pasting, coloring, painting and having fun. I've been hanging out in the 3D Studio area lately because I'm looking for some talented people for projects I'm working on. Sometimes I feel like the guy in that American Express commercial who says, "You probably don't know me, that's why I carry this card." My card would have an Autodesk Logo on it. Kevin Gibson Animation Nation <tm> -=It's a state of Mind=-
#132014From: SyndesisOct 29, 1994 11:22 AM
I'm glad you like Morph's. I thought it was a good opportunity. We advertise there, and they offered a free six-month subscription if we sent our mailing list to a blind mailing house. That means we didn't "sell" our list, and more people will see a cool magazine and our advertisement in it! As for advertising in the Autodesk MM Guide, here's my perspective. We already advertise InterChange, our 3D translation product, in the AutoCAD Resource Guide. Side-by-side, I had no doubt that the MM guide would be a better place for us to advertise. Autodesk hands over the production of these guides to a third party. When compared with other advertising venues in a cost-per-thousand- customers basis, the MM Guide's rates were several times higher. Why? We were over a barrel because they had the monopoly of getting this book in every box. As for overhead, software developers have all that, too, so I'm very familiar. Dealers can be just as bad as consumers when it comes to shaving percentage points off the price of product: they can play both sides of the dealer / distributor coin, asking for distributor quantity discounts (like 60% off) instead of dealer discounts (40%) yet selling directly to consumers, they can ask for comp "in-store" copies and then sell them, they can engage in a half-dozen pre-sale phone calls with the developer before arranging a sale, and then buy from another distributor instead of buying direct. As for why the mom-and-pop dealership is doomed? I'd suggest you stop by your local CompUSA and just watch what happens for several hours: lots of people appreciating the endless selection, the good prices (10-20% over mail order), lots of impulse purchases, plenty of salespeople, and little sales pressure. Speaking as someone who pressed their nose against the glass of the display cases to lust at the IMSAI and Apple motherboards, I too will regret the passing of the mom-and-pop computer store. It sounds like you have some complaints about Autodesk's dealer policies. As a company that's depended heavily on dealer sales for their success, I hope they can fine-tune their policies. I'd recommend talking at length with your dealer representatives at Autodesk.