So I took some of the advice from forum buds and shot CS a note about my 4 records that have been hanging out “In Stock” 4eva, and sure enough...no answer to my email, but 3 rapid fire shipping confirmations today. It’s been a strange day, I work in a niche apparel industry, and several friends of mine lost their jobs today because one of the Top 3 companies in our small industry had to shut their doors. They were a competent company with leadership that I liked and respected. Which leads me to VMP.....IF I do decide to take this “sweet” $89.75 deal for the next 3 months, what are the chances my gamble pays off with getting “Stankonia” in Oct or Nov?? I had the RSD version, but gave it to my daughter who had missed out on it that RSD morning....Have wanted a good pressing since then. So, a quick poll:
1. Odds of VMP delivering Stankonia before Christmas
2. Odds of VMP(company leadership I no longer like or respect) still being in business by Christmas
And I truly wish all of the VMP team I’ve met along the way, the very best through all of this....I mean I’ve been rubbed wrong by pretty much everything they’ve done since shutting down the forum, but it’s ONLY records. It’s been extremely tough watching friends lose their jobs today, I don’t wish that on anyone, but I just don’t see how this business can continue to operate like this, and have any customer base left.
I'm not sure on Stankonia, but my condolences on the jobs lost across your friends and in the industry. It's stressful to watch and go through both personally and generally.
As for VMP: While I've no direct knowledge, my guess is that the pricing changes, etc. do reflect risk in their model. Their churn has to have increased across the percentage of people that experienced job insecurity, or just aren't happy with the service, and that has to have combined with lower new sign-ups as it is a non-essential good (well, for the folks outside this forum...). Depending on their board meeting schedule/ cycle they've had pressure to provide an answer on costs, yield per customers, efficiency, and importantly some level of net recurring revenue relative to (or in excess) of their churn. Their costs have risen with mastering, pressing. They also clearly have a mountain of operational inefficiency and costs. They needed to present a plan in this last meeting (or just prior to the next) because execs like to be seen as people that take action, have confidence in their decisions -- and hey, if you are right, why haven't you out it into implementation? (and that's a lot better than explaining that you've been actually managing the business poorly) -- which explains the sudden poor rollout of the announcements and changes.
They are in trouble or at least underperforming the key metrics their investors care about...
Will they stay in business? Subscription calendars can be powerful and give you time to recover.
Will it be valuable for the subscriber? It would take a lot of courage and management strength to drive quality as a strategy vs tricks on margins. (You can determine if the leadership has shown that courage) Also, fixing fundamental problems often has to do with culture, management -- real change can take time.
Flip side: The valuable exits for this business are largely dependent on acquisition -- which is tough and narrow for their investors because the range of potential buyers is really small. That's tough because investors aren't super excited about carry costs, but also provides some protection as long as they can get the metrics in line -- no one likes to believe that they be thrown away (or gotten wrong) a call and the tendency is to push the business to find a path. The original founders get heavily diluted, maybe replaced, but the business sticks around for a while.
I expire in May. Id have to see a lot of change and improvement in the service, the economy, etc to renew -- but I would like to renew. I love the idea and moments of the execution have been great -- they scream for a need of stronger management fundamentals and a stronger view of accountability, pride in excellence, and integrity in the leadership -- which seems to be squandering great promise.
Wow. That was long.