I think you're getting confused. They would sell to the dealer at the
same price they sell to us minus the small percentage the returns program
costs them. At the current margin rates in the dealer/mfgr arrangement
of ~10%, you'd be paying at least 10% more each for a TT rig. With no
return priviledges. The reason they went direct was so they could be
more competitive. The returns policy was to balance out that you
couldn't go to a dealer and spin the dials to see if you liked it.
That's funny because almost none of those dealers are left because us
cheap hams would rather save a few bucks and buy from HRO.
73, Duane (risking being called a TT koolaid drinker! Color of
koolaid? Red dot, of course.)
On Sat, 23 Jul 2005 16:45:47 -0400 "Martin, AA6E"
<martin.ewing@gmail.com> writes:
> My 2c worth
>
> When thinking about TT's loss on these deals, we might keep in mind
> that TT decided to go with the direct sales strategy. If they were
> still using dealers, they'd "lose" xx% (?) on each unit to keep the
> dealer happy. I expect the average cost of returns is well less
> than
> xx%.
>
> I suppose the return policy is meant to be a cost-effective
> alternative to having a showroom and demos at a dealer. It
> certainly
> made me more confident when ordering my Orion.
>
> 73 Martin AA6E
>
> On 7/23/05, Toby Pennington <toby423@earthlink.net> wrote:
> > Perhaps this new policy by Ten- Tec should be layed out for all to
> see, so
> > there are no misunderstandings. If you purchase a rig and return
> it for
> > credit which is a part of their advertising and company policy,
> then you
> > are doing what they are allowing you to do.
> >
> ...
> _______________________________________________
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> TenTec@contesting.com
> http://lists.contesting.com/mailman/listinfo/tentec
>
>
--------------------------------------
Duane Calvin, AC5AA
Austin, Texas
http://home.austin.rr.com/ac5aa
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