Dan,

I know you qualified that as *development* tool, but I am just thinking *tool*. I don't look at Dream Card differently than Elements, or a low end CAD tool, or an outliner... All are "consumer" tools to me. I look at the utility of each to me to solve one type of problem. Being a hobbyist, I use a lot of different tools, but not at the same time. In fact, the reason I buy a tool is because I have just one project that I need the tool for. I might use Rev like crazy for a few months, then not use it at all for a year, then back at it again. I also have a lot of woodworking tools. I buy the lowest cost tool that will do a reasonable job, then If I wear it out, or find it is the most used tool, I will replace it with a professional grade one. If I were to go for the professional grade software, or wood working tool in everything I have, I would have to spend $100K in tools and if it were all software tools, $30K/year in upgrades --that isn't going to happen! However, If I really got into Rev and was going to generate income with it, I would upgrade to a Professional version --just as I would with any other tool that warranted it.

I see examples of the multi price point tool products from successful companies everywhere.

When I buy a table saw, darned if they don't all have a similar user interface. Expectations also change with the size of the investment. If my cheap $100 saw (which lacks some features of the expensive one and comes with a short warranty) breaks, I try to fix it, or junk it. Whereas, if my expensive saw breaks, the manufacture better damn sure get their asses in gear and get this tool fixed now --and they do!

In the case of RR, I think they are taking the right approach. They primarily listen to and support the professional customers --exactly right, that gives them focus. They maintain one interface and code base across their products --essential for limiting the incremental work involved in the lower priced products, since the company is too small to support multiple efforts. Since Rev is complex to fully learn all the features, Hobby programmers that grow into professionals, do not have to start over in the learning curve. I just can't think of a better planned way of doing this with the size that RR is now.

Being the type of customer that (if I weren't retired) could potentially turn Pro, I can speak from how I view these products. I view the RR product line in a favorable light, but Transcript is rich and complex. The biggest roadblock I see is making the documentation into something that captures the wisdom of this list that can be searched with only a concept of the problem to be solved instead of what the solution is called by someone else. It is too big a project for RR to tackle. It can only be done by this list. But that is another thread on another list.

BTW, in the early 70's I was a freelance consultant for early Intel 8008 based product developers. I wrote an 8008 emulator for a minicomputer that I designed, and ran Intel's development tools on it. I could turn around compiles 10 times faster than my customers using Intel's native development tools. I provided hardware or software consulting. The thrust of my consulting was to provide initial solutions, then provide the training to the customer's engineers to take over the project as soon as possible (I had my own products to develop, but needed to generate additional cash from consulting). So my perspective does span a broader range than just the inventive hobbyist.

Dennis

On Nov 26, 2005, at 3:24 PM, Dan Shafer wrote:

Dennis....

A well-thought-out and appreciated post.

But, as with others who have offered this viewpoint, I am compelled to ask you to provide even one example of a development tool company following the strategy you describe below that you say is "being used by the most successful companies today." And I'll expand on that a bit. Not only can I not think of a single *development tool* company following the strategy of trying to serve two markets with a single product, I can't even come up with a single successful software company doing that. When I think of successful software companies in the desktop universe, I think of:

Microsoft
Adobe
Macromedia (about to be swallowed by Adobe if that hasn't been finalized yet)
Apple (partly)
Real
Maybe Oracle (which is a dev tools vendor in large part, but not much on the desktop)

Adobe doesn't have a low-cost entry version of Acrobat or inDesign. A trial version, yes, but when it expires you pay through the nose to keep using it. Same with Macromedia. Apple supports low- and high-end users in a couple of its strategic markets, but with two separate products, not a low-cost version of the high-priced one. Real has a free player but if you want to start creating Real media streams you're gonna pay a bundle.

So where are these software companies that are following this two- market strategy successfully? To the contrary, I think the secret to a successful company -- in any sphere -- is focus. Do what you do well and let others do the stuff you don't do well. If RunRev had a couple hundred people, *maybe* they could figure out how to serve both markets with great success. Short of that, I am unconvinced.

On Nov 26, 2005, at 8:52 AM, Dennis Brown wrote:

I think that they are more likely to stay in business with the current model --it is the model being used by the most successful companies today. They are growing (I assume) slowly as the product matures. At some point I expect this model is going to propel them forward into a larger company that can offer better general support and product bug fixes (I think bugs cost more to fix than adding minor new features), while continuing to support the professionals needs.

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