ralphpnj wrote: 
> I'm not sure about that Southern Seas voyage but I am pretty sure that
> no matter hard we tried we could not build and sell a audiophile music
> server for $3,000 that would be a success.
> 
> Here's why:
> 
> Let's say the cost to design and manufacture each music server comes up
> to roughly $1,500 and we set the retail price at $3,000 which leaves a
> hefty 50% profit.
> 
> So far so good but....
> 
> Now we have to add in the cost of advertising in the various high end
> audio magazines and web sites
> 
> plus the cost of providing long term loans of the music server (i.e.
> free units) to the same magazines and web sites
> 
> plus the cost of visiting each reviewer at each magazine and web site to
> set up music server and buy them dinner (this could run into serious
> money with air fare and hotels)
> 
> plus the cost of exhibiting at all the various high end audio shows
> (this could run into serious money with air fare and hotels)
> 
> plus the cost of developing and listing both an iPhone and android app
> 
> As you can see even with a what appears to be a hefty 50% profit margin
> we would barely break even, if not actually lose money. I think in order
> to be safe we need to sell the music server for at least $10,000

True... There is the issue with the marketing budget. But I wouldn't
worry too much! When it comes to the audio reviewers I don't think it's
the same as entertaining Wallstreet bankers. A flight here and there to
a domestic audio show, a few tickets to the local symphony, domestic
wine with dinner; I don't think that's a problem.

We could enjoy visiting a few reviewer's homes (a server computer isn't
too bad to lug around)... Check out the quality of the acoustics, enjoy
some LPs played back with He-Man-weight turntables and compare the sound
to our glorious server-based digital audio, chat about the "golden
years" of hi-fi, test their hearing ability with a few choice MP3 tracks
and marvel at their remarkable ability to differentiate Red Book from
24/192. All on the company's corporate account!

As for audio shows: We don't need to get our own room as a start. Share
a room with a decent speaker and amp startup, talk to some cable company
to share the cost.

Finally, no worries about the iPhone/Android app. Remember, we're
running Vortexbox and LMS! The apps are there already... Heck, we should
even a gift certificate for $10 to either iTunes store or Google Play
for them to buy whatever app they want!

-Pssst... One last thing, I'm trying to build mystique around you with
that South Seas voyage. This way when you're a zillionaire, we can
invite Madonna over to dry hump your audio rack. :-) Of course, that
could be a few year from now and maybe she wouldn't titillate you in the
same fashion...-



Archimago's Musings: (archimago.blogspot.com) A 'more objective'
audiophile blog.
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