Hi again Dave,
I've read this thread carefully; this is a topic near and dear for two reasons:
1) I almost had enough saved for a kit (just noticed the price increase). I'm going to keep saving and get it eventually anyway. I'm doing this penny ante because I have a family, and that how my priorities work out. I’m happy to pay because it means you’ll be staying around a while longer.
2) I run my own business and have to make a living doing it.
If this seems terse or preachy, its just so I can get to the point clearly.
As far as 1), I can save a little longer and still get what I want, which is an 1801b that I can enjoy building and take pride in when they are complete.
And for 2), Success is an outcome that begins with a goal. If I understand, your goals are 1) Enjoy a hobby for now, while breaking even in $, learning a lot, and enjoying a community and 2) Eventually having a business that 'makes money'.
These are really different goals. Getting from one to the other means changes.
I've also noticed you have a backlog that keeps you from growing (new products, being more effective getting reviews, etc). I had a plumber friend with the exact same problem.
He raised his prices until he had free time. He did not compromise the quality of his work, or do the "over promise and under deliver thing". He just began asking for compensation that was in line with the value he was providing. Then, he had time to step back, make some good decisions, and act on them. Now his business is back up, but he can afford to subcontract some things (where quality is not compromised), and can afford to reach out with some new goals.
Cash flow is the heart and soul of a business, obviously. The goals and foundations of a business can be whatever the owner makes them, but they are academic without the resources to implement them.
I've watched this forum for a while, and its clear that few people are doing business with more integrity. It would be an absolute shame if this were lost because you get tired of making $0.36 / hour in a good year. If your circumstances can stand this, you may be able to go on like this for a long time, but not forever, I suspect.
Eventually, Ellis Audio 1801b speakers might become a cult item, and won't need any 'marketing' to sell on ebay for multiples of what you charge. I don't know about you, but Van Gogh dying in poverty seems like a hell of an injustice to me. All really worthwhile endeavors have something of art in them.
I've seen lots of comments in this thread, some good, some bad, and since most of it has been covered, I'm not going to suggest much.
I would however suggest first you have a clear understanding of when you goals are going to change, so there is no confusion about what you might need to change (and when) to accomplish a new goal.
Second I would suggest that since your goal seems to be to pursue a hobby now, ask yourself if the time you put into it is equal to the satisfaction you get out of it. Your time is the one resource I see that you spend here in abundance (and thank you for that), but I'm also learning, having got to early middle age, that its damn precious.
I am an engineer, and also sell semiconductor process equipment as a representative for a very small company with very high standards of quality and integrity. Why does this small manufacturing company need my small engineering / sales company? Because the two jobs are just damn difficult to keep under one hat.
We don't sell in a way that compromises any of the standards of the company we represent, but we do something they can't. To be perfectly honest, I'm not sure why this works, but representative (and distributor) arrangements have a long history of working well and being mutually beneficial. I must agree wholeheartedly with the persons who suggest making the message about your product more accessible; if you want to turn to a goal of making money, your (admirable) humility is at odds with reaching a wider world of potential customers.
So, in short, I believe you should consider:
Keeping the kits, at least at the beginning of a product cycle- This provides you excellent close feedback, rewards early adopters, and attracts interest among newer audiophiles.
Look at your pricing structure- Opportunities for cash flow to fund new offerings, keep your curiosity fresh, and most of all, free some of your precious time.
Broaden you product offerings- New products, aiming upmarket, which should be no problem, considering your standards. Also an opportunity for some pricing differentiation.
Consider finding working partners who share your values- Opportunities abound for cabinet makers, folks who know sales channels that might fit your product, publicists that understand media relations, press releases, etc.
Word of mouth is a fine but small stepping stone. Broader horizons for Ellis Audio, most deserving of such, IMHO.
Best Regards,
Bryan
