ORIGINALLY PUBLISHED IN MICROpendium February 1984

Many User Groups See Unprecedented Growth Coming Their Way

by Laura Burns

If TI knew as much about marketing as it does about making home computers, assembly lines would be turning out the 99/4A today, and when E.F. Hutton talks people would be listening to the advice, “Buy TI.” This viewpoint was universally agreed upon by nine users’ group presidents across the country interviewed by Home Computer Compendium. Both advertising and pricing strategies were criticized as marketing mistakes of TI.

“Some very poor marketing of a very good computer,” is the way Diane Kavanaugh, president of the MSP 99 User Group in Minnesota describes it, criticizing TI for “starting the whole price war.

Grayson Hudspeth, president of the Big Sky 99er’s Computer Users Group in Montana says TI’s biggest mistake was “trying to sell the computer as a game machine against the Commodore, the Vic 20 and the Atari. They weren’t trying to point out the features it has as against the Apple or the IBM-PC until recently.” As a result, he notes, “nobody realized the computer was as much a computer as it was.”

“Bill Cosby is neat. I like him personally,” Bill Mills of the King’s 99cr User’s Group in Hanford, California. says, while criticizing TI’s “very, very poor ads” with their game machine orientation. He feels that the machines were not available in enough stores and “when they finally got in in enough stores, they went out of business.

In addition to marketing, Ron Kuseski, of the Rocky Mountain 99ers, in the Denver, Colorado, area, feels that TI should have released the specifications on its software, disk operating system and the basic operations of the computer so that third party vendors could build up the computer system. “I hope that now that TI’s out they will release them so other people can keep it going,” he says.

TI has been “not very consumer-oriented.’’ comments Bob Utter, president of the Central Iowa 99/4A Users Group. ‘‘They produce a very good product, they just don’t relate well with the product. Most of what they did right was too late.’’

"That computer is so good, people can’t believe TI is going to do it,’’ says Ota Jiroutek. president of MUNCH in the Worcester, Massachusetts. area, who comments that selling the computers for $50 was ‘ridiculous.’’

Don Donlan, president of the Hoosier Users Group in Indianapolis, Indiana says he works with a man who bought a 99/4A for $25. By giving rebates and reducing the Computer's price. TI ‘‘gave the image that this was a very cheap piece of hardware.’’ Donlan says. He suggests that "instead of discounting the hardware, TI would have done better discounting some of its software.’’

Reducing the price below $300 was a mistake.’’ comments Rik Papagolos, president of the Tri-State Users Group. He also believes the firm ‘‘pushed the command module too heavily.‘‘ giving the impression that the computer was merely a machine into which to plug cartridges, like an Atari game machine. “It was marketed as a game machine and as an educational machine, but not as a computer.” “They spent enough money on advertising,” he notes. “Their advertising budget was adequate. They just had terrible commercials. The only thing they did right was hiring Bill Cosby, but hiring him and giving him terrible commercials wasn’t right.” He says that the Texas Instruments user group coordinator has not been in contact with his group since TI announced it was quitting the home computer market. “I think they’re missing the ball,” he says.

Charles D. Bathman. president of NET 99er in Hurst, Texas, believes that TI should have “gone out and proved that they were better than Apple. They should have advertised how good it is and more capable than machines that were more expensive.” He also believes TI was “too stingy with allowing third party manufacturers to produce software.” TI “tried to get all the gravy,” he says.

TI’s final advertising campaign. which emphasized educational uses of the computer, was praised by many of those interviewed.

Shocked By Withdrawal

“Shock” was the word most used by the presidents to describe their reactions to TI’s decision to pull out of the home computer market. Kavanaugh notes that a month before the move was announced, a TI representative attended the MSP 99 User Group meeting. “We got a lot of assurance on TI staying in the market,” she recalls. “We have a good computer and want to continue to use it,” Bathman says. “If TI wants to get out, fine.” “It was rather shocking but people are still rather hopeful,” Jiroutek says. Since the computers were selling “like candy bars” during the Christmas season, he notes, many don’t believe TI will completely drop the machine. He has heard rumors of another company gearing up to produce the 99/4A. “We feel kind of like orphans now,” he says. “Primarily the main response was concern with what was going to happen with the club,” Kuseski says. “We reassured everybody that the club will continue and may be even stronger.”

“There was a marked increase in purchasing both software and hardware,” Papagolos says. Initial “panic,” he says, was “followed by an intellectual evaluation that TI was dong the only thing it could.” Donlan sees the announcement as drawing more persons to user groups. The Hoosier group, he says, has become “more close-knit and goal-oriented.” He points out that, because of the “dramatic price reduction,” there are “literally millions of people looking for support and direction in the use of home computers.” Utter sees the reaction to the announcement as “probably not a lot of surprise—probably more concern whether they were going to be able to get equipment.” He notes that “everyone went out and started buying everything up.” Mills says reactions varied from “Why did I buy it? Why did I waste my money?” to “Now’s the time to take advantage” of the low prices.

He sees “a rush for everybody that can to buy a computer or add to the system,” noting that there was a lot of “panic” and a feeling of ‘ ‘we’d better buy now while we can.” Mills feels that TI “could have waited to see what Christmas sales might have done. It could have made a world of difference.” Hudspeth says the move doesn’t bother most members of the Big Sky group any more, noting that the user group alone has several hundred programs in its library and that “support for software, if not from TI, from other vendors, is going to coninue.” He adds, “We’re not sure TI’s not going to come back next year with, what is it, the 99/8? Some people really got a deal when they cut the price and I still feel we have the finest computer on the market.” He compares the 99/4A favorably with the IBM-PC, which he uses at work.

Some user groups have changed their emphasis since the announcement. Papagolos reports making more long-distance calls, trying to gather information, along with relying on more third party vendors for hardware and software. Bathman says that little has changed for his group. “We were always out there trying tofindthebestdeals,” he says. “TI’s prices were relatively high compared to things you can get in the third party market.” His conclusion is that “the only people who really got hurt are TI” as a result of the decision to stop manufacture of the home computer. Donlan says the Hoosier club is purchasing hardware to provide a backup for members faced with a temporary loss of their system and is working toward developing an electronic bulletin board. Currently, the club is using one for all computer users in Indianapolis.

User Groups Grow

Mills says his group is going into “a lot more back-to-basics.” In his capacity as editor of the group newsletter, he is rewriting a lot of articles, he says, because the group is growing by “leaps and bounds” and he estimates that 75 percent of the new members don’t know the basics. Another recent development is an adventure game subgroup for both players and programmers. Kavanaugh says a command module swap, ‘sort of a garage sale- style swap,” is planned for the January MSP 99 meeting and the group plans to start classes in BASIC programming this year. She notes that people are “buying the computer and knowing nothing about what they want to do with it.” As a result, the MSP group is expanding very rapidly, she says. Other presidents report similar growth or indications that it will occur. Utter reports “a rather large jump in membership,” with 35 or 40 joining at the last meeting.

Jiroutek says that about 100 perSons attended the December MUNCH meeting and noted that according to the local newspaper’s article on Worcester-area computer groups, the TI group is the largest one there. The president of the Worcester TRS group attended the last MUNCH meeting, Jiroutek says, and told him, “I’m not coming to spy on you, but I bought my son a TI.” He says a ‘real invasion” is expected in January because of the hundreds of TIs sold during December, many of which, he predicted, “were under the Christmas tree.” Kuseski says that the winter holiday months are always “big months” for recruiting, hut that he hasn’t compared growth to last year to see if it is greater. He notes 50 guests at the December meeting, in addition to regular members. Mills says that his group has tripled its membership “inside 60 days.”

Members are concerned, Mills says, about how long support will be available for the comuuier, particularly software availability. He notes concern about publication support - whether 99er Magazine, for instance, will become just another general purpose computer publication. Hudspeth says the greatest concern is whether third party vendors will produce peripheral equipment for the TI. Kavanaugh also says that buyers are concerned as to whether they will be able to expand their systems in the future. Utter notes that “the TI peripherals have pretty much disappeared around here.” “Getting their money’s worth,” is listed as the top user concern by DonIan, “by at least being able to use the computer as a tool for learning more about the information age and applications of a computer as a home and business tool.” Jiroutek says concern has surfaced about spare parts and about repair if something goes wrong with the computer.

Papagolos says that concern about being able to find, for instance, a particular program has lessened because people are coming to realize “there are third party sources.” He notes that there is “a lot of junk software” on the market. “Some of it borders on the fraudulent.” He notes that some third party manufacturers have supplied the users group with software to evaluate and that members have passed on information about others. “As such, I think TI is not going to be missed,” Bathman says. “What people miss are some of the things TI promised for the future,” such as the 99/8. He says users are concerned about repair capability if they haven’t bought a spare console. He notes that his group has found a place in Dallas that will repair TI products. He says users are also concerned about expansion cards and chip replacement in the future. He says that “if members don’t want to stay in TI we’re thinking about selling their equipment for them.” So far, he says, no one has expressed interest in selling their equipment. Because of the price reduction, he says, many members have just gotten into the TI computer.

User Groups Fill Needs

Utter typifies those interviewed in his opinion that user groups will grow in importance because people are looking for applications and education regarding their computers. He notes, however, that trying to get discount purchasing for the group through stores has become more difficult. Utter comments that “it seems like most third party software coming out in module form is games. That’s “only good for a while,” he says, citing a need for educational and home management modules to achieve a better balance in software. Donlan says third party vendors should realize that the installed base of TI home computers is the largest in the nation and the user groups could be used for marketing research “A lot of hardware will go unused unless third party vendors take the initiative to develop programs and applications,” he says.

Donlan says many persons who have “whetted their appetite with the TI computer” would be “willing to migrate” to a more powerful system compatible with the TI. Batflman says that hardware repairs is a concern along with the availability of such items as graphics tablets and interfaces ‘that allow you to turn on lights and stuff.” He sees a need for good business and technical software—’ ‘There’s enough games out there to satisfy the world.” Kavanaugh says her group will do “more with classes” and with trying to find equipment. Members wonder what is going to happen, she notes. “The warranties are going to run out,” she points out.

Papagolos feels that third party vendors could provide user groups with detailed information on whatever they develop, along with perhaps samples or loans of their products or opportunities for members to purchase them at a lower than retail price.

A Great Computer

The TI computer and several of the company s policies came in for high praise from the user group presidents. Papagolos commends ‘‘an exchange policy that is very favorable.” Utter notes that the computer is “powerful even though it’s only 16K.” Hudspeth characterizes the computer schools set up for buyers as “excellent. It came a little bit late. They did things right at the end.” The cartridge “makes the computer a multipurpose tool,” Donlan said. Kavanaugh says a selling point for her was that a small child could use the computer without damaging it.

Hard To Predict

Though the clouded crystal ball, most presidents see their groups continuing and growing for at least the short run. “I anticipate a minimum of three years,” Mills says, “but who can predict in all honesty what the computer world is going to be like in three years?” LB