Can someone explain Cliff's role regarding the Axe-FX?

[romanianreaper]

Specifically I'm trying to understand the manufacturing process. I saw one of his posts and he mentioned that he ordered a bunch of units based on expectations, etc. and was going to have a bigger order after that. Does he order the units from another company and just put the parts together at his location?

Based on sales, he could easily sell thousands of Axe-FX II units in an hour. If I were them, I would do a poll, etc. and ask "are you going to purchase an Axe-FX II? They would be able to get an idea of expectations.

 

[crwnedblasphemy]

less supply, more demand

 

[jkdsteve]

Presumably he's placing orders from a contract manufacturer.....can only order so many based on cashflow in the company or his credit line with the bank/manufacturer right?

 

[BSRIAudio]

Presumably he's placing orders from a contract manufacturer.....can only order so many based on cashflow in the company or his credit line with the bank/manufacturer right?

I've always thought that was the case. At the very least he is contracting the motherboard assemblies and then maybe doing final manufacturing wherever he is located. You cant just pop up with a product like the axefx and be doing 100% of the manufacturing yourself. It would take way too much capital for an unproven product release.

 

[daveg62]

I don't agree that he would be able to sell thousands right of the bat. First of all I don't think there are thousands of people with $2200 waiting to spend on an Axe-fx. Sure i do think that there are thousands of people interested, most of them already have an ultra or a standard. Are they willing to sell their current model and buy a new axe-fx II? Sure they are. Are they willing to take a big loss? Maybe, maybe not. This thing is going to take time. There might be somewhat of a demand at first but there are plenty of axe-fx users who are very happy with the current models. The listings on ebay for the most part are people just testing the waters, seeing if they can sell now before the prices drop somewhat, which they will, but not as much as some people are thinking. Bottom line is the Ultra and Standard are very good, the best out there right now. It doesn't matter if the II is better or not, it's still not gonna make the Ultras and Standards worthless, they are awesome on their own. Less supply, more demand has been the MO for fractal in the past. Why would that change now?

 

[jkdsteve]

Presumably he's placing orders from a contract manufacturer.....can only order so many based on cashflow in the company or his credit line with the bank/manufacturer right?

I've always thought that was the case. At the very least he is contracting the motherboard assemblies and then maybe doing final manufacturing wherever he is located. You cant just pop up with a product like the axefx and be doing 100% of the manufacturing yourself. It would take way too much capital for an unproven product release.

Yup..and if he's building/assembling himself then it's worse..since he owns the parts before they can even be sold...well, assuming he buys in low quantities and not able to negotiate NET payment terms with any of the vendors.

 

[TeleBlaster]

No doubt he has one company stamping cases, another building boards, another doing the packaging.
The biggest pain is making sure the boards are made to your spec. Lotsa these guys want to switch components to make it easier for the p&p machines.
So he'll get a couple sample boards and have to make sure everything is as he designed it, then OK production.
Then he's gotta QC the first lot really tight to make sure. I've seen new amps fail to make the release date because the PC board guy subbed components and they were not what the designer specified.
So the short answer is there are a lot of little hurdles to get the first production run together and shipped.
I have zero insider info into Fractal to know where they are production-wise, but there is absolutely no way it's manufactured "in house".

 

[TeleBlaster]

PS - It's not about the hardware. The value of the Axe is the software. That's what he's selling. The box is just means of accessing it.

 

[jkdsteve]

PS - It's not about the hardware. The value of the Axe is the software. That's what he's selling. The box is just means of accessing it.

Yup..it's a rather large dongle

Who knows how well the real time DSP stuff would work if it was de-coupled from the platform...?

 

[TeleBlaster]

I've thought about that. Would he ever sell it on a DVD with a GUI? Then it would become really handy in a studio situation, depending on how well it plays with others.

 

[Nico]

less supply, more demand

the demand is the same... if the supply is less then the prices are affected, not the demand!

 

[thiswaythatway]

He patrols the internet and airways stamping out any non-believers with an iron fist.

 

[snowdog]

Anyone hear a number as to how many Standards/Ultras they have sold ?

 

[Ventura]

less supply, more demand

the demand is the same... if the supply is less then the prices are affected, not the demand!

Interesting spin on relativity and universality.

I like that
V.

 

[Spaceboy]

I wouldn't think that the Axe FX isn't popular enough to have thousands of people waiting to purchase a new model in the same hour. Outside of the big names, most Axe FX owners are gear/forum dorks like the rest of us, while the average everyday guitarist (target for most companies) has never even heard of it.

 

[romanianreaper]

I don't agree that he would be able to sell thousands right of the bat. First of all I don't think there are thousands of people with $2200 waiting to spend on an Axe-fx.

I'm not sure I agree with you. Years ago, I would have but I live in a country where people wait weeks in line for the IPhone. Not sure if you have been over to the Fractal Audio Forum but it is like a scene out of Planet of the Apes over there.

Who knows though. Maybe you are right. There might be alot of talk and no action when they start shipping but I know people on this forum buy Diezel amps like I buy a gallon of milk.

 

[Shark Diver]

less supply, more demand

the demand is the same... if the supply is less then the prices are affected, not the demand!

Interesting spin on relativity and universality.

I like that
V.

Except when the prices are then affected, then demand will change as well. Until an equilibrium is reached.

 

[TeleBlaster]

Ummm... wow. Demand for Axe II is nowhere near the demand for iphone.
Really.

 

[lespaul3013]

I feel like I'm in Economics class....

 

[daveg62]

I don't agree that he would be able to sell thousands right of the bat. First of all I don't think there are thousands of people with $2200 waiting to spend on an Axe-fx.

I'm not sure I agree with you. Years ago, I would have but I live in a country where people wait weeks in line for the IPhone. Not sure if you have been over to the Fractal Audio Forum but it is like a scene out of Planet of the Apes over there.

Who knows though. Maybe you are right. There might be alot of talk and no action when they start shipping but I know people on this forum buy Diezel amps like I buy a gallon of milk.

My point is that I think the majority are probably in the same situation I am in. I own an axe-fx. I am very happy with what it does. Do I have money to just buy the Axe-fx II when it comes out? No, I would surely rather buy a new guitar if I had the cash. Would I sell my axe-fx and upgrade? Sure if I could and not loose a lot of money. So you see if I really like the version I have now, why would I take a huge loss, sell, just to buy the newest model? I wouldn't. I do have mine on ebay, I will sell it if someone buys it but really don't care that much if they don't. I actually feel very confident that the prices of standards and ultras will not drop all that much for awhile. And who's to say there won't be problems with axe-fx II. Maybe even people will prefer the standards and the ultras, you never know. And check out ebay..I don't see anyone giving them away because they probably feel exactly the way I do. You might see a few, and those people aren't very smart if you ask me, or maybe they can afford to take the loss, or are buying into the hype that the release of the II will make theirs worthless. I just can't see everyone dropping them all at once just to upgrade. Doesn't make much sense to me.