cparmerlee
I worked over 20 years in a marketing organization for one of the largest computer manufacturers in the world, reporting directly to the VP of marketing for the last 8 years of my career there. This was a company that did $2 billion - $3 billion of sales each year in the product areas I was involved with. I had direct reports on every continent except Antarctica.
I actually do have a little experience in this field.
And I assure you, we never let $10 get between us and a customer. Customers are more valuable than that.
Okay, now I
totally get where you're coming from. So, I thank you very much for giving
specifics instead of speaking in denigrating generalities about Cakewalk's alleged incompetence and insensitivity to the needs of its consumers.
Given a company that you say did
$2 to $3 billion of sales each year (and apparently with greater grosses than that, considering that you limited your statement to product areas in which you were involved), I can completely understand why you think $10 spread over tens of thousands of pieces of software is trivial.
In this industry, it is NOT even close to trivial. Global sales of the
entire musical instrument industry for 2013 (the last year for which I have figures) - including DJ gear, electric guitars, acoustic guitars, PAs, ukuleles, recording gear, software, interfaces, headphones, microphones, studio monitors, power amplifiers, pianos, synthesizers, strings and accessories, tuners, brass, woodwinds, sitars, drums, etc. - is estimated at under $17 billion dollars and under $8 billion in the US, the world's largest market. According to the best data I've been able to gather (correct me if I'm wrong, please) Avid, by far the market leader for DAW software, tops out at quite a bit less than $900K/month during the two-month holiday season spike and goes as low as under $500K during other months. I can assure you that no other music software company, including Cakewalk, is even close to that.
So, given your expertise, I remain interested in how you propose that Cakewalk cover this expense given the constraints imposed by the size of this market. Except now I am
very interested in your answer, because perhaps you have
do something of value you can contribute if you can fully grasp the disparity between your frame of reference of what a company makes, and that of companies in this industry. So ultimately, the question remains...who's going to pay the $10 per unit sold, which in the case of a company the size of Cakewalk's,
literally means the difference between firing and keeping an employee if Cakewalk has to absorb that cost?
And it's not like Cakewalk has employees sitting around doing nothing that the company could easily afford to shed. In fact the company needs to hire more employees.
Consider this not a lecture about marketing, but straight talk about the realities of a tiny industry, which has been the context of
everything I've said. If you have meaningful answers to the questions I have asked that are relevant to the constraints of this industry, believe me, I'm all ears.
I have
zero doubt that if Cakewalk was pulling in $2-$3
billion a year, they could indeed "eat" the costs of including a $10 encoder...because
each copy of SONAR Platinum would have to cost several
hundred thousand dollars in order to bring in that kind of revenue. Unfortunately, I do think that pricing strategy would limit the size of the customer base