[ThePianoMan]

[/IMG]

 

[ThePianoMan]

My writing teachers at college are hooked on this blog after I introduced them to it. Jason could write the next block buster HBO series.

 

[GBechz]

I once did framing/drywall/insulation work with a "Ten Thumbs." I ended up having to redo most of his work, which in his opinion was "good enough."

 

[wine-fi]

As to what Jason had mentioned in the last chapter (Perspective), "Start worrying when you say it's good enough"...  Exactly right.  Because eventually, it won't be.  This can be applied to all aspects of life, and should be.  Another great chapter Jason.

 

[drez]

 
Things that need to be considered when setting a price:
 
1.  Cost to purchase the device components
2.  Labor to stuff the board, test and program the board, assemble the board in to the chassis, burn in the unit, final testing, cleaning and bagging
3.  Cost to package and ship the item
4.  Warranty service costs
5.  Overhead that is not directly related to the cost of the individual unit: Lease on the warehouse, liability insurance, customer service, advertising
6.  Price theory: AKA why does every product cost end with a 9
7.  Distribution model:  B&M, Direct, some hybrid of the two- each of these models has costs that impact price.
8.  R & D  (Thanks judmarc)
9.  Risk & Profit: Every product that is manufactured at the most essential level is a bet that someone will want to purchase what you produce.  You risk losing your investment if you get it wrong. There needs to be a reward when you get it right.  Without this, we'd still be a subsistence level species hunting with our hand-made spear chuckers.  When James Watt invented the steam engine he wasn't doing it because his wife was out of town and he didn't have anything better to do with his time.

 
But it's more fun to pretend [pricing] is a conspiracy against my experiencing ultimate music experience (or my wallet) 

 

[wine-fi]

Once again many thanks to Jason for sharing his story about making Schiit happen.  It just goes to show that making something for one's self and maybe a few friends is one thing.  But, designing a product for production with intent to sell at a good price is a totally different animal.  So many are quick to judge and say, "hey I can buy the parts for x and build it myself for less..." Well, as Jason pointed out in an earlier chapter, if you factor in making a product that will be reliable, come with a warranty and be attractive to perspective buyers, does require some good design and manufacturing abilities and experience.  The fact the Jason and Mike have done this with a great price point and value for a whole product line which let alone is made in the USA, while enduring the ups and downs of building a successful business is fantastic.
 
This whole story about Schiit Happened has been great.  It talks about the many aspects of making a business grow and turning into something.  All of the important things like incorporating to protect personal assets, leasing space when it is time and hiring employees.  Not trivial tasks.  It takes a very special person to be able to start, run and grow a business.  There is an old saying, "If being in business was easy, everybody would be doing it."  So next time you're looking a Schiit amp or any product for that matter, think about what just might have been involved in making that product happen...
 
Hats off to Jason, Mike and the whole team at Schiit!

 

[judmarc]

  As of summer 2012, everyone was still a contractor. Since nobody had set hours (and everyone came in at fairly bizarre times…hell, Eddie frequently worked from 1AM to dawn), we could kinda squint and get away with it. But I knew that, very soon, someone would say something about it, and we’d be in trouble. We also really, really needed to provide healthcare and all the normal job perks, since we were starting to have employees with families and such. Sounds simple, doesn’t it? Well, stepping into full-boat employee status, tax reporting, and benefits is a very big step. We didn’t make it until January 1, 2013.

 
Yup.  Used to surprise me the number of companies that cratered due to not accomplishing the step from contractors to employees, and the benefit and tax record keeping and reporting that goes along with it.  I thought everyone with a business would know how essential it is and make sure it was done, even though PITA doesn't begin to describe the level of additional time and work involved.  So kudos to Alex for getting it done.

 

[catspaw]

Alex tried to combat the heat with a portable air conditioning unit, but it really struggled in the uninsulated space. We mostly used it to keep the products on the burn-in racks from going full Chernobyl. Indoor temperatures of 90+ were common.

 
I assume if those managed it, ppl can stop to worry about their asgards getting a bit hot >D.

 

[kothganesh]

"Now, we only had part of the Schiithole (about 1000 square feet) at the time, not the entire building. It was just as crappy, dusty, and miserable as I’ve described. And, as an added bonus, the Santa Clarita summer was on us, bringing 100-110 degree temperatures during the day to a building with no air conditioning and no insulation.
 
Yeah, Alex pretty much cooked. Eddie, Tony, and I only came in during the evening when we could prop the doors open and run some big industrial fans to circulate the cooler air outside. Alex stayed there pretty much all day, to keep the shipping going.
 
Alex tried to combat the heat with a portable air conditioning unit, but it really struggled in the uninsulated space. We mostly used it to keep the products on the burn-in racks from going full Chernobyl. Indoor temperatures of 90+ were common."

 
Jason, I can see Alex thriving in Indian conditions

. The freaking rent is not that cheap here anymore !!

 

[scolaiw]

  …and sometimes you get a big surprise.
 
Like the one that came next. 

What came next?

What came next?

WHAT CAME NEXT!?

 

[SoupRKnowva]

I think that it's pretty easy to figure out...having seen the coverage of the great schiit flood...what product came out after magni/modi...that had the opposite of a massive undershot in presumed demand?
 

Spoiler: spoiler

Loki

 

[Matias]

  I think that it's pretty easy to figure out...having seen the coverage of the great schiit flood...what product came out after magni/modi...that had the opposite of a massive undershot in presumed demand?
 

Spoiler: spoiler

Loki

 
Nope, I think Loki and DSD are saved for "Chapter 32: Name Me One Non-Standard Format That’s Succeeded, Ever, Or, A Trickster Cometh".

 

[superjawes]

I'm not familiar enough with the Schiit storyto say for sure, but my guess is that it has something to do with a printed article from one of the largest newspapers.

 

[ThePianoMan]

New York Times does have an article about the audiophile community on its website - the schiit asgard and headphone community are mentioned. Perhaps the mentioning of the schiit product had some unforeseen effects when they got put in touch with an audience that's decidedly more mainstream about its music gear?

 

[wine-fi]

It's always interesting when I have non-audiophiles come over and listen to my audio rig.  Normally they can't believe how good music (and in most cases their music selections that they're familiar with) can sound.  Then there are the occasional flat-earthers... who have a tin ear and really can't discern the difference between listening to music through a great audio setup or a table-top radio.
 
Of course, us audiophiles are a unique bunch that are dedicated to the hobby.  But for those who really don't care about what they listen to their music through as long as it works, hey that's cool too.  However, it's always great to see someone discover that there is a difference between mass mid-fi gear and high-end gear.  That's why it is refreshing to see a hand full of companies out there making some really good affordable personal and 2-channel high-end gear to get more people into listening to music through much more better sounding equipment.
 
We all started somewhere with something...