Bob, it is a bit more complex than that.
If you were to give each of those 4 radios (a, b, c, d) a different brand
name and try to sell them independently of each other, then you are 100%
correct; the bulk would be with c and d. The revenue and even total profit
(not profit per box) will be with those two categories.
Now introduce "brand" into the scenario.
IMO, Yaesu has figured this out the best.
They start by building an expensive high end box, migrate some of the
features downwards, then advertise it as "FTdx5000 Heritage". And Joe Ham
swallows that hook, line and sinker - even though often a is indeed a good
box and c is a piece of crap.
This tactic increases (slightly) the amount of money Joe is willing to pay
for c and d. Multiply that increase times volume and you're in business!
In order to make c and d attractive, it helps to have good brand recognition
in a and b, even if that's not where you make the money. I'm not sure you
need 4 classes of radios, but you do need 3.
EXAMPLE: Alinco; they are really only active in category d. How many
Alinco hf transceivers do we hear on the air? There is no sex and glory in
an Alinco, even though they are just as good as the FT-450. The difference
is brand recognition.
73 - Rick, DJ0IP
(Nr. Frankfurt am Main)
-----Original Message-----
From: TenTec [mailto:tentec-bounces@contesting.com] On Behalf Of Bob McGraw
- K4TAX
Sent: Monday, April 14, 2014 5:06 PM
To: Discussion of Ten-Tec Equipment
Subject: Re: [TenTec] How much for an Orion III?
Having been on vacation for a few days etc., I've monitored the chat on this
topic via the wife's Kindle Fire. It's proven to be interesting to read the
comments and suggestions. A few have actually been quite good.
>From my perspective, the real questions to be satisfied are:
(a) how many hams are willing or able to buy a radio selling for over $10K?
(b) how many hams are willing or able to buy a radio selling for over/under
$5K?
(c) how many hams are willing or able to buy a radio selling for over/
under $2.5K?
(d) how many hams are willing or able to buy a radio selling for over/under
$1K?
So exactly where is the market?
But to extremes, hams seem to want a radio that has all the performance,
whistles and bells and features of a radio selling for $10K or so, but it
seems they only want to pay about $1K to $3K. In other words there is not 1
radio that fits all, nor is there likely 5 radios that fit all. Everybody
seems to have different ideas and wants and needs. The key operative here
is NEEDS. Just what does one NEED in terms of a radio? Well that depends
largely on one's budget and preference of operations. Contesters have one
set of needs, rag chewers have a different set of needs, CW ops have a
different set of needs and then the braggers.........a totally different
set of needs. Just sit down and identify your specific needs for your
station and operations for the next 5 years. Write them down and try to
find a radio on the market today that fills all of them. Trust me, it isn't
that easy.
>From a manufacturing point, quantity makes money. In other words, would you
prefer to make a single product that sells for $1 million dollars each, or
would you prefer to make a million pieces that sell for $1 each? Well, the
fewer headaches and the better profit is in the latter. Same for ham
radios. If you doubt it, look at the history of MFJ as an example. They
have filled most ham shacks with lots of inexpensive, by comparison,
goodies.
Personally I would like to see the modular concept implemented where one can
add features and options based on their needs, their wants and their
budgets. Yes, budgets are very important as every ham ticket issued did
not come with a $10K or so line of credit. If yours did I want to know
about it as mine didn't.
And let me make it clear, I want a radio with knobs and buttons, not a box
attached to a computer, although I do want the capability to operate the
system under computer control. More importantly, I want the display large
enough for the old eyes to read and knobs and buttons large enough for old
fingers to handle.
How much am I willing to pay, well that answer is yet to be determined. As
'tis often said "money talks and BS walks"; show me the goods and I'll show
you the money.
73
Bob, K4TAX
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