Hi Guys,
First of all my sincere apologies for delay in replying to you.
Referring to your questions about our theme release schedule, as the last release was TechNews several months ago; I'd like to take the time to explain the business situation GavickPro currently faces, and what are our plans for the future.
Having previously been relatively successful in the Joomla! template space, over the last 2 years we've experienced a steady decline in sales; something that many other template providers have been experiencing too. This general downturn can be attributed to two key factors; one, the Joomla! CMS is simply not as popular as it was in past years, and two, the amount of competition (at least in terms of quantity) has grown by a large margin.
There can be no doubt that Joomla! is still an excellent choice for any website owner, but pressure from WordPress' growth as well as the uncertainty that came with the multiple change in development structure after the release of Joomla! 3.2 has taken some of the wind out of its sails. It still does a great job, and the change in the roadmap looks to be a great decision from the user point of view, yet there may be a long time before it can recover its userbase; something that negatively affects the number of eyes on our products.
Competition in this limited space has also seen major growth; when Gavick first started we were only the fourth or fifth company offering such services, but now it'd take a couple of days to count up how may providers there are. This isn't a negative in and of itself; more competition can lead to improved services for users, however in this case the issue is that the market has been flooded with quantity over quality, negatively affecting new customer perceptions of the Joomla! space.
We've have taken many actions to expand the scope of our business to help offset the downturn; four years ago we started by introducing WordPress versions of our templates to the market, but even after this time there has been little profitability in this area due to the severe competition provided by the large number of theme sellers, and in particular due to the proliferation of a single theme marketplace, which effectively strangleholds smaller developers; we've seen more than one theme club go under as a direct result of this competition.
There have also been some external factors to the theme business in general that have had some major effects on us; in particular, our company's location in Poland is detrimental due to the high costs associated with running a business. As a comparison, the same business in Asia generates only a third of the associated costs as running within the EU does.
Let me give you a prime example; in December 2014 a new regulation was introduced in the EU regarding payments for electronic services, and specifically, VAT (MOSS) - sellers of digital goods were now obliged to pay VAT in the buyer's country. This may be a fair ruling by the EU, but in practice the obligation to detect where the buyer comes from falls to the seller. This might seem a trivial check; the IP tells us all we need to know. However, this isn't in-depth enough; what if I'm a Polish man living in France, but when I make the purchase I'm on holiday in Spain? Because in order to comply with these regulations we needed to take more information from users our checkout process had to be expanded, making it more unwieldy and frustrating for users who would often jump to alternative companies that were not based in the EU and didn't have these requirements to meet; this directly affected our customer experience and directly impacted sales.
Google's ever-updating search algorithms also caused an insurmountable number of headaches; instead of focusing on quality and effectiveness of content related to the business, it expects us to post constantly with unique, sophisticated content like we're exclusively a blog, rather than offering a product. With the majority of our staff engaged in the creation, support and management of our templates it isn't viable to expect them to be writing articles about Joomla! daily. Also, though older but still relevant content could be ignored by Google, duplicate content would not; frequently we would encounter black-hat-style tactics where our articles, theme descriptions and other website content would be cloned & mirrored across a number of websites, which Google would flag as duplicate, and we all know what Google thinks of duplicate content...
So, with the combination of a general downturn in Joomla's popularity, increased competition from larger companies (along with some unregulated providers using some rather unsavoury tactics), and the need for huge spending to achieve relevant Google results placing, we decided to shift to a pure sales rather than a subscription model; on June 1st 2014 we moved to selling each of our themes individually, or as a complete package.
Increasingly since then, with the introduction of the new VAT rules and continued drops in earnings, we've had to stagger our release schedule as it was not possible to maintain the staffing levels required for a monthly release without a drop in quality of the themes, which is something we did not want to compromise. Many of our team members that previously worked on developing our themes have moved on and created their own company,
Tidycustoms, focused on providing high-quality bespoke customization and optimization services for websites directly rather than building and selling individual templates due to the uncertainty in the theme market; they'll also be introducing an additional writing, translation and proofreading service shortly, expanding their services even further.
At this point, our monthly turnover is extremely low, which makes maintaining a regular release schedule an impossibility for the time being. For now, we are operating with a small team focusing mainly on maintenance releases for our existing projects and support for these current templates for our existing customers; later in February we will be releasing updates for all our current releases to make them compatible with Joomla! 3.5. However, that is not to say we are not working on new templates at all; we are still working on new releases, but as you might imagine nailing down an exact release window is tricky. We intend for our next release to become available somewhere between the end of February/beginning of March, though this is of course subject to change as the current business climate prevents us from setting release dates in stone.
I want to be honest about our situation and not hide anything from you - it's not good. But at the same time, it's not completely bad; we are still here, still doing what we can to make improvements, and I do hope that we will be here with you for some time yet.
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Robert