Moderators: If this is a taboo topic please freeze or delete.
Clearly over the last couple of years Elektron has been going through a growth phase, moving from a small manufacturer of relatively niche instruments to one with a larger line of products and a greater visibility in the market.
I’ve been somewhat surprised by the what appears to be a disconnect between this expanded footprint, and the availability of their products in the wider retail market. For the last 6 months the three new machines, AK, A4 and AR, are only available directly from Elektron (with occasional orders dribbling out to retailers), and even more surprising, more than half of Elektron’s product line isn’t available at all (even directly from them).
I’m curious if this is a reflection of a small company trying to expand too fast, and whether that might be reflected in financial info… Here’s what I was able to find on performance that last few years:
You’re right not yo try to interpret such a small amount of data! As a CA I can safely say that analysing any such data is difficult in any case. It’s historic and as such out of date. It gives little indication of the current state of affairs.
Elektrons expansion is clear to see (presuming the data is accurate of course) and from a simple, quick look I would say they are handling things fine enough from these variables.
16 FTEs seems low to me! But head count figures often don’t include part timers and contractors.
Disclaimer: I have no contact with Elektron and this is merely my opinion.
Speaking as someone who has run my own businesses, this seems completely normal. The problem is not “expanding too fast”, it is one of demand. Quite simply, they have come up with amazing new things and the demand has outstripped the supply.
People outside of business often think that the solution is to “simply make more product”. In Elektron’s case this is not so simple. These are boutique products, carefully made with high quality to exacting specs by a small group of extremely passionate people. Can’t just throw a “bigger factory” at that problem and frankly I don’t want them to.
My current company has this same issue. We put out an amazing product and the passion of our employees makes it possible. We have had the “hiring” sign out 24/7 for years but it is nearly impossible to find these unique people so expansion and growth are slow. I can’t even imagine how difficult new hires must be for Elektron.
I have ridden the Elektron bus longer than most of you and I have experienced astonishing game-changers one after another. They update operating systems long after it makes financial sense and have not stopped making amazing new musical instruments.
To be clear, I am as frustrated as anyone by the lack of availability but I feel like I have an understanding of the current situation that allows me to give them some rope because the one thing they consistently do is surprise me with something amazing. We have not seen the end of that.
I too had a frustrating experience while waiting on my product. I’d bet part of it does have to do with managing growth, but in large part communicating with dealers effectively seems to be a bit of an issue. Based on the feedback I got from the dealer, the distribution system in the US does seem a bit odd. I would likely just encourage Elektron to be more transparent with dealers about how they get from manufacture to customer. It’s kind of odd to say something is available and then wait 6 weeks for the distributor to “sell” the "available"product to the dealer and then ship it.
Having worked for an American distributor of European goods I do know properly handling logistics can be challenging as well as the disconnect between the American vs. European consumer and how needy Americans are for data. We’re impatient and we like to know stuff. It just is what it is.
Elektron makes great product. An the customer service seems to be pretty good considering everything I’ve read and seen. There’s just that tiny hole you all have to fill.
Disclaimer: I have no contact with Elektron and this is merely my opinion.
Speaking as someone who has run my own businesses, this seems completely normal. The problem is not “expanding too fast”, it is one of demand. Quite simply, they have come up with amazing new things and the demand has outstripped the supply.
People outside of business often think that the solution is to “simply make more product”. In Elektron’s case this is not so simple. These are boutique products, carefully made with high quality to exacting specs by a small group of extremely passionate people. Can’t just throw a “bigger factory” at that problem and frankly I don’t want them to.
My current company has this same issue. We put out an amazing product and the passion of our employees makes it possible. We have had the “hiring” sign out 24/7 for years but it is nearly impossible to find these unique people so expansion and growth are slow. I can’t even imagine how difficult new hires must be for Elektron.
I have ridden the Elektron bus longer than most of you and I have experienced astonishing game-changers one after another. They update operating systems long after it makes financial sense and have not stopped making amazing new musical instruments.
To be clear, I am as frustrated as anyone by the lack of availability but I feel like I have an understanding of the current situation that allows me to give them some rope because the one thing they consistently do is surprise me with something amazing. We have not seen the end of that.[/quote]
Truly excellent post. Thank you for your insight.
I’ve certainly aired some complaints about Elektron’s business approach over the last year on this forum, after waiting for a very long time for my Octatrack with lots of silence from Sweden. I feel a bit bad about that to be honest, but I’ve also encouraged many people to buy them here and in other forums, because they make instruments like no other that have taken me to places musically I never thought I’d reach and continue to inspire me. I’d love to see this company succeed, and I’m sure that they will be able to ride out the growing pains of their rising profile. If they can take the next year to work out the production and communication issues, I’m sure the frustration will wear off in the marketplace, although they obviously have a need to keep creating new things to attract more sales.