I don't think you realize how razor thin the margins are in ham gear. I
worked at HRO Denver for a long time and the margins on radios is in the
dollars range.
I am sure that DXE has better margins on their name band labels,
accessories and aluminum etc.
On the other hand is the tree/plant market where the markups are in the
400 to 500 percent...Yes 4 to 5 times cost if not more so a 10 percent
coupon is a no brainer.
I agree with you that nearly every ham website is awful compared with
other retail sites. DXE website is ok but I have run into some weird
things and the searching is awful. HRO updated recently but it is still
meh and their catalog other than color has not really changed much.
Maybe they subscribe to the if it is working don't fix it theory?
The problem is that old farts like us are driving those ham sites and
they are not hiring or getting the advice of the younger generation on
what the sites should look and feel like. But then again we do nothing
to attract people to the hobby, especially young people so maybe they
are just riding it out.
W0MU
On 3/25/2017 1:14 PM, Rudy Bakalov via TowerTalk wrote:
Yes, the retail world has changed, but the ham radio market is trying to ignore
the changes and pretend the 21 century does not apply to them.
Products do indeed have slim to non-existing margins and this is precisely why
ham merchants must look into services, cross and upselling, and much better
customer service. Again, technology makes this possible and affordable for
anyone.
Today's example- earlier in the week I had been pricing a 80m 4SQ system off
the DX Engineering site. Between the aluminum needed for full size elements and
the controller itself, we are talking a decent sale. When I came back to the
DXE site today my shopping cart still had the bill of materials, but I was not
presented with any incentive to actually buy.
I'm comparison, I placed $100 worth of Stella de Oro plants in my shopping cart
and then took my son to his lacrosse practice. 3 hours later I got an email
reminding me to come back and check out, plus a 10% discount. Keep in mind
that this is a small family nursery in MI, not a giant retailer. If they can do
it, so could DXE.
And yes, Jim, I have had P&L responsibilities for decades. I know how to run a
business, albeit in professional services. $2.7M YTD, $750 in unearned revenue,
and a pipeline of $4M. But my professional experience is irrelevant here, what's
relevant is my experience as a consumer.
Rudy N2WQ
Sent using a tiny keyboard. Please excuse brevity, typos, or inappropriate
autocorrect.
On Mar 25, 2017, at 2:29 PM, Jim Brown <jim@audiosystemsgroup.com> wrote:
On Sat,3/25/2017 9:34 AM, Rudy Bakalov via TowerTalk wrote:
Let me offer some examples:
Good suggestions, Rudy. But have you ever run a biz with employees? Ever done
retail? I've done both, and I can say that it's cut-throat, both with vendors
of the products you sell and with other sellers like you. Profit margins have
gotten smaller and smaller, the vast majority of buyers seem to look far beyond
price.
If all a vendor is doing is handing (or shipping) me a box and taking my money,
I don't consider that worthy of much profit margin, so I'm likely to buy from a
known reliable vendor with the lowest price, shipping included. OTOH, if that
vendor is adding value, as in some of what you've suggested, or with in-store
displays or an operating setup with the gear, I will buy from that vendor if
they're selling what I want to buy, even if they're more expensive.
The recently closed ham store in Sunnyvale that started this thread DID have a
station setup with a tribander on the roof, but I didn't want to buy the HF
gear they sold (my HF gear is Elecraft) and I never found their sales staff
particularly helpful. I did buy incidental accessories from them that were in
stock, and one or two FM rigs. And in one transaction early on, I was treated
badly with respect to warranty. As a result, the only thing I felt badly about
when this store closed is that the staff lost their part time jobs.
As to those extra services -- those are functions that, in the great ham tradition have always been provided
by other local hams. Some call it "elmering," others mentoring, others call it "paying
back" or "passing it on" for how we were helped when we started out. As a teenager with a new
General ticket, I was given my first rig by an older ham, was taught CW and electronics/radio by the local
ham club, got help with antennas, was mentored in contesting, all by local hams. The technical writing and
teaching that I do is payback for all the help I've received over the years.
73, Jim K9YC
_______________________________________________
_______________________________________________
TowerTalk mailing list
TowerTalk@contesting.com
http://lists.contesting.com/mailman/listinfo/towertalk
_______________________________________________
_______________________________________________
TowerTalk mailing list
TowerTalk@contesting.com
http://lists.contesting.com/mailman/listinfo/towertalk
_______________________________________________
_______________________________________________
TowerTalk mailing list
TowerTalk@contesting.com
http://lists.contesting.com/mailman/listinfo/towertalk
|