Yeah, it's DEFINITELY not an easy business. And there is a crazy amount of competition coming at you from all sides, and from large corporations that have big marketing and advertising budgets.
Unfortunately, from my experience with these types of product categories and in this segment of the marketplace, it's important to maintain several lines at different quality levels & pricepoints, for a variety of reasons.
A) The High-End Product Line...to show that you are a serious contender and that all of your products are based on a foundation of high-end technology & engineering, and that you can compete with the "big boys". For those that want the best, you have that category covered. (And still at reasonable price points compared to the competition).
B) At least one "point of entry" product line that "gets people in the door" and offers really good performance, but at an accessible price for the masses. Something on the order of, "Our 'Performance' line offers nearly all of our proprietary, trickle-down technology from our "Expert" line, but using soft parts & hardware that allow us to offer an excellent level of performance at substantial savings. The 'Performance' line is our absolute best value for excellent SQ without the 'High-End' price tag!"
C) But you also need to have "B" as a "stepping stone" to "A". And you need to maintain "B" as a supplementary line to "A". For instance, I have the ''Expert" line as my front stage, and the "Performance" line for rear fill, or to cover the rear passengers. Or I have the "Expert" line in my main "fun" vehicle, and the "Performance" line in the family SUV or minivan, etc. "But when money permits, I'll switch everything over to the 'Expert' line". This allows for more potential sales overall.
Look at how Hybrid Audio Technologies and Audiofrog have developed their lineup over time and continue to maintain them. You'll see the same across most brands, and in all of the products they offer.
Obviously, producing and maintaining the multiple lineups requires a huge investment and commitment! But I know of several companies that maintain a "break-even" product that helps to support their "money maker" product(s) just so that "on the books" they can acquire better investment financing and can show and project increased sales numbers. Or vice-versa.
I know that it might not make sense, but if I can show the bank that there is potential for several thousand orders of my "break-even" product line, with future potential for increased profits as economies of scale grow (lower manufacturing cost with increased quantities over time in the future), this looks better for sustained business and income growth compared to coming to the table with just 100 potential orders for my "premier" product.
So the "break-even" product supports the financing to manufacture & produce the "money maker" product line, where otherwise you might not be able to obtain or create the capital to get ANY of your products manufactured.
One thing is for sure...
It takes money to make money. It's rough out there!
Yes, it seems logical to just produce a Passive Crossover network for the TM65-III/M3/M25 since all of the R&D and tooling for the drivers is already in place. And I would LOVE to see that happen.
But, as Jason said, those still might be at too high of a price point for the potential customers he is targeting. He needs that "point of entry" or general consumer product line first.