And I believe the kill spot for a contest / dx transceiver is $3k.... but it
needs to be good and not just a dressed up $1k starter unit.
73 & DX,
Gary - AB9M
-----Original Message-----
From: Bob McGraw - K4TAX
Sent: Tuesday, May 20, 2014 7:41 PM
To: Discussion of Ten-Tec Equipment
Subject: Re: [TenTec] Merger
I for one believe that a $500 to $1000 dollar radio packed with reasonable
features and functions and with a accessories would kill the market. Money
is to be made on quantity/volume production. Plus it would need to be
prefaced with about $200K of effective hype!
In other words, 10,000 units @ $550 ea at 10% margin is $550K. That
produces more money than 1000 units @ $750 at 30% margin which is $225K.
This does not include any advantage of parts qty purchases with the larger
manufacturing qty. Although the larger qty does require more initial
investment. Of course one could argue that production of 10 lots of 1000
would produce more money. But, how many buyers would be lost with the price
differential between $550 and $750. I'd say 30% or more.
Although FOX news had a nice piece on ham radio, it is a small or very
narrow market.
http://www.foxnews.com/tech/2014/05/19/ham-radio-old-technology-gets-new-respect/?intcmp=obnetwork
This is for you marketing gurus to discuss. I'm only a lowly engineer that
only knows ohms, volts, amps and watts.
73
Bob K4TAX
----- Original Message -----
From: "geoffrey mendelson" <geoffreymendelson@gmail.com>
To: "R. Eric Sluder-W9WLW" <resluder@yahoo.com>; "Discussion of Ten-Tec
Equipment" <tentec@contesting.com>
Sent: Tuesday, May 20, 2014 6:56 PM
Subject: Re: [TenTec] Merger
On 5/21/2014 2:11 AM, R. Eric Sluder-W9WLW via TenTec wrote:
Highest margin per unit = Hacker/Maker/Kit e.g., Rebel, Patriot, etc.
(caveat, to do this they'll have to upgrade their way of socializing the
community development effort) <Why the Sales Manager mentioned Facebook,
and other social media>
Eric,
The problem I see with that is the cost of the units. While they seem
cheap enough, since they are open design, and sold to a community with no
brand loyalty, someone in China will duplicate them, and sell them as a
kit on eBay.
A great example of that was the 3 band CW only rigs sold from China. They
appeared in the US as a complete kit of parts (no case), sold from Canada.
The important point is that they were not sold from the US, bypassing FCC
regulations.
Ten-Tec bought a licenses to sell them and had to make modifications and a
significant investment.
Ironically, MFJ did the same thing, and they and Ten-Tec were (are?) in
direct competition selling different versions of the same radio.
Since they were developed in China, they did not have sufficient output
filtering, which is why neither radio sold in the US has 3 band transmit.
What worries me is that with the low cost ($20? $50? $100?) of a kit
consisting of a circuit board and a bag of parts, will people buy the
Ten-Tec? My fear is that the brand loyalty is part of the generation that
won't be buying the radios in the first place.
Geoff.
--
Geoffrey S. Mendelson 4X1GM/N3OWJ
Jerusalem Israel.
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