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Preface - Please Read
First!
The first thing I want to say, because this is what some people will think
(and I'm sure what will turn up across the net) is that I am NOT GOING
OUT OF BUSINESS OR SHUTTING DOWN THE BUSINESS.
What I am doing is restructuring the business and changing the
products I offer and how these products are brought to market.
Part #1 - Phasing out of some
MOTM modules (both kit and assembled)
MOTM is now a mature product line, having been in business 8 years. I am
approaching 7000 modules shipped (over 7000 have been sold) to almost 600
different customers around the world. The biggest sellers as a group are
the filters. This is what MOTM is known for and we are fortunate to have
the best analog filter designer on the planet, Juergen Haible, allowing me
to license his work. The MOTM-480/485 work by Scott Rider has been my
biggest selling modules the last 18 months.
However, as in any business, there are
some modules that recently have been in decline. It's not that they
are a bad design, or the pricing is too high. It's just that most people
need only 1 module per system, there are many other alternatives, or the
function is not that popular. Therefore, I am going to build one more batch
of kits, set aside a certain number for assembled modules (reserving pc
boards and front panels) and when these modules are sold out, they will not
be restocked.
The following modules will be
discontinued when stocks are sold out:
- MOTM-120 Suboctave Mux
- MOTM-380 Quad LFO
- MOTM-510 WaveWarper
- MOTM-700 Dual 2:1 Mux
- MOTM-820 VC Lag
- MOTM-850 Pedal Interface
- MOTM-890 MicroMixer
The MOTM-510 WaveWarper will be offered
in Frac Rack later this year.
Part #2 - No more MOTM kits after Dec. 31, 2006
MOTM was founded on providing high-quality kits that were better than any
commercially produced synthesizer. Over the years, the kits have outsold
the assembled modules 94% to 6%. Some of this is cost, some of this is
delivery times. But mainly it was addressing a market segment that no one
else covered.
Around kit #5000, the task was just too
much for me to handle. One of my customers, Paul Haneberg, stepped in and
took over most of the kitting and shipping. He charged me a low (too low)
fee for each kit shipped, bought all the parts, paid all the bills. It was never
intended to be a money-making proposition. Paul did this because he
wanted to help. He even went out on his own to buy a used turret punch for
making Stooge panels one day.
However, several months ago, Paul
suffered a stroke. He has recovered greatly, but the last thing he or his
family needs is to be stuffing resistors into little plastic bags as a
favor to me. However, I want it to be very clear that this is not
the reason I am discontinuing kits sales. The reason is purely a business
one: the market has shifted to assembled modules from over 12 suppliers.
For the first 6 months of 2006, my kits sales are down 44% and my assembled
sales are up 75%.
Therefore, at the end of this calendar
year, I am discontinuing all MOTM kits. Starting Jan. 1 2007, all MOTM
modules will only be available in assembled form. This is the part that
will upset the most people, and cause all the speculation. Again, this does
NOT mean I am quitting and shutting down! Quite the opposite: I have
at least 10 more modules I want to release. But these modules will be
assembled only, and they will all be SMT.
Part #3 - MOTM is moving to SMT technology for all new modules
Synthesis Technology is currently selling, through Analogue Haven, a series
of SMT modules in Frac rack format. Due to the success of the technology
(thanks Shawn!) and the ease of manufacture, all future MOTM modules will
be SMT only, and not sold as kits. This is true even for new modules
released this year.
Please read this part carefully, because
again this will get misquoted all over the web. I am NOT going to
redesign existing modules into SMT. The modules that will remain for sale
of the existing line will remain through-hole. However all NEW DESIGNS will
be SMT. Essentially, the modules will resemble giant Frac modules internally.
I will continue to offer the remaining assembled MOTM modules exactly
like they are today.
The new MOTM modules, beginning with the
MOTM-730 VC Pulse Divider, will still use the same panels, paint and
graphics. When you look behind the panel, what will be different is how
they are put together. If you have one of Encore's wonderful Frequency
Shifters (and if you do not, get one!), that will give you an idea what
future MOTM modules will look like. Am I reducing quality? NO!
Lastly, moving to SMT technology assures
that customers in Europe will be able to receive them due to RoHS laws (SMT
allows easy RoHS compatibility).
Part #4 - Delivery times: past versus future
It's no secret that delivery times on assembled modules have been
embarrassing. But look at the statistics above: it's hard to justify
spending a lot of time for 6% of your revenue. So it's reasonable to think
that MOTM going to a fully assembled model in 2007 is a huge mistake.
Actually, it will make things much
easier to deal with. For older modules, there will be a controllable
expectation of orders, and I will be able to stock. The current assembled
module backlog is 43 modules, and all 43 of these modules will be shipped
by Sept. 1st. In fact, over the last 2 weeks I have shipped 19 assembled
modules (not including MOTM-650s). I want nothing more right now that to
get all of these modules into the hands of waiting customers.
Future modules, being SMT, will be able
to ship in volume the day I place them for sale. I will not take
pre-orders or down payments. I'm going to build 75 to 100 of them all at
once, place them in shipping boxes with instructions, and ship them
starting the next day. This is how the Frac business is run, and this is
how MOTM will be run. Over the last 8 years, the expectation of service has
risen not just for me, but for everyone. Customers want their stuff now and
the reality is, the market for kits is over. I cannot sell to musicians,
who in many cases are facing a deadline, if they have to wait or build
them. I have lost untold dollars because of this. Well, no longer.
Part #5 - Stocking Levels and the BIG SALE
It will take me a few days to do inventory of panels and pc boards and
figure out what stocking levels I will use for the rest of the year. I will
send out an announcement when these have been loaded into the shopping cart
database. I will also at that time place all of this information on the
website for public viewing. I have always believed in full disclosure of
what I am doing, and giving 6 months of time before the phase-out.
In order to help move the modules out
the door, I am going to have a sale beginning July 10th and running to Sept.
1st. All modules will be 15% off. Kits or assembled. The shopping cart
can be set up for this automatically (I just have to figure it out!).
I will load the shopping cart this week
with the kit inventory for the entire year. This will allow you to
see if a module is about to go 'vintage'. If I sell out of MOTM-380 in
October, then that's it. If I have 11 kits leftover on Dec. 31st, then they
go into the assembled inventory (I know some of you are hoping for a fire
sale in December to flush out all the remaining kits. Nope.) The inventory
today, if you look at the cart, is just what is in stock today. But beginning
July 10th, the numbers in the cart are for 'real' for the entire year
, and gone will mean just that: gone.
Part #6 - New modules
The first SMT assembled module will be the MOTM-730 VC Pulse Divider. I'm
starting CAD pcb layout tomorrow. I have all the parts, I will order front
panels next week. I expect to be shipping mid-September.
After that will be the MOTM-810 VC
Looping ADSR EG. This is a 2U wide MOTM version of the MOTM-1800 Frac
Looping ADSR with added VC inputs. This will ship in mid-October, early
Nov.
I have hired an outstanding Xilinx FPGA
programmer to assist in the MOTM-520 Cloud Generator. In about 6 hours of
code time, he demonstrated a 4-voice Blacet Mini-Wave type module (quad VCO
with programmable wavetables). And this uses 7% of the IC (the Xilinx part
can easily do 256 individual wavetable VCOs at once).
What the 2 of us are developing is an
AudioEngine sub-module, that can be used in all sorts of things. This
credit-card sized module can be plugged into a main pcb and be programmed
as needed (it has FLASH, just like the MOTM-650). The point is not to make
a 'Universal Do Everything' MOTM module. The point is to have a common
hardware platform that I can use in different modules. Stay tuned for more
AudioEngine announcements.
Summary
By now emotions are running all over
the map. Take a deep breath and read the summary:
- Synthesis Technology/MOTM is not
shutting down
- Synthesis Technology/MOTM is changing the
product mix
- MOTM kits are being discontinued Dec. 31,
2006
- Some MOTM modules will be discontinued as
stocks are depleted (both kits and assembled)
- Future MOTM modules will be assembled only,
and will be shipped from stock (zero wait time)
- Existing MOTM modules, that will be offered
only assembled beginning 2007, will be shipped from stock (zero wait
time). There are no plans to discontinue these modules.
- The AudioEngine will allow unheard of
(literally!) modules to exist that combine CV/MIDI control with 32-bit
RISC processors and vast digital logic.
Please feel free to call me at
817-281-7776 or email me (not the list) synth1@airmail.net if you need
clarification. I want to personally thank everyone for reading this and
selecting MOTM as your modular supplier. All of these decisions are
designed to improve the MOTM family of modules, and to continue MOTM's
standard of excellence.
Paul Schreiber
Synthesis Technology
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