On 1/2/17 11:38 AM, Jim Brown wrote:
Great response, Jim. BUT -- the increase noted by the original poster
was that the increase was overnight!
Several possible reasons for this. One is that business operations for
the ham market are often supported by higher volume and higher margin
operations for other markets. When those other markets fall apart, they
no longer support the ham market, or contribute to economies of scale
that allow lower prices.
Another is corporate mergers, which can change business priorities,
change where products are manufactured.
But assuming corporate greed as the reason for all such price increases
is unreasonable. It certainly can be, but there are many other reasons.
yes, I agree.. usually it's a "it's not economic to sell at that price
any more, compared to other products". I was more commenting on the
"back in 85" comment.
I know someone who is buying 50 tower trailers with 100+ ft towers on
them. That's a much better sale proposition than onsie, twosie sales to
individuals. Whether through distribution or not, the support costs
tend to be "per customer" not "per tower".
As for the overnight x3... That's a "we don't really want to be in this
business" or "our cost structure radically changed" kind of increase.
I've also seen that when you have a business founder of a family
operated business retires/sells out: the founder didn't have any debt
service costs, was willing to live out whatever margin there was. The
new owner had to get a loan to buy the business and actually has to pay
employees a wage and benefits - all of a sudden instead of "my wife does
the assembly and we're on the same insurance" it's "I've got to pay a
reasonable wage and provide vacation, insurance, etc.", I've got to pay
rent and storage costs, I've got to pay for the "cost of money".
A similar phenomenon occurs when a partner retires/dies/leaves and the
remaining partners have to buy them out.
Or, it's just - we don't want to leave existing customers totally in the
lurch, but we can't subsidize them either - we'll be responsible and at
least make parts available, but at cost that is basically "fabricate
from scratch individually"
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