[TenTec] Tax on Inventory

Fri Sep 16 06:08:20 PDT 2011

I certainly do not think Ten Tec wants to go out of business.  Their issues
may have to do with a parts supplier or various other issues in regard to
having "everything" to make a finished product all the way down to shipping
containers.  I would think giving Stan a call rather than just re-looking at
the website for a change in availability would be a better route.  I think
Ten Tec like a lot of other smaller companies puts their website updates
behind direct customer responses through phone, mail, and email.  Lastly, I
certainly do not think Ten Tec is "...forcing hams to buy rice boxes".
Personally I do not buy things based on unavailability and would not think
most hams would not buy another brand or model because the one they really
want is unavailable- perhaps discontinued but we all know there is a huge
used market so you can still have your dream radio that was manufactured 30
years ago.

73, Paul K4BWG

-----Original Message-----
From: tentec-bounces at contesting.com [mailto:tentec-bounces at contesting.com]
On Behalf Of matthew martin
Sent: Thursday, September 15, 2011 11:32 PM
To: tentec at contesting.com
Subject: [TenTec] (no subject)

It appears that Ten Tec wants to go out of business. On their web site they
have been out of stock on the Omni 7 for over a month and now they are out
of stock on the Eagle with a tuner. They are forcing hams to buy rice
boxes.
Matt, W8MJM

On Fri, Sep 16, 2011 at 7:23 AM, Kris Merschrod <Kris at merschrod.net> wrote:

> There were many "no subject" subject lines today!  So I'll pick up on a
> thread that is probably crucial for small raido companies in general.
>
> The inventory problem (and I did the first inventory in about fifty years
> at
> my family company and decided to drop it!)
>
> For those not involved with this issue.  If a company assembles radios but
> does not sell them in that fiscal year, then the value of those unsold rigs
> is considered an accumulated asset and the difference between cost and
> value
> is taxed.  The same appies to having more, say, inductors in your supply
> room than you had at the beginning of the year.
>
> That keeps folks from squirring away profits in inventories!   Well, you
> would think that this idea would be one of the areas for reform especially
> if you want companies to demand down the line to stimulate the economy.  In
> the longer run, those inventories will eventually be sold and profits made
> (or lost) that then can be taxed.
>
> So this all comes back to the cycle of construction and sales - who wants
> to
> be stuck at the end of the fiscal year with radios ready to go out the door
> but not sold?  Think of that cash flow problem - you have your working
> capital tied up in radios and now you need to take some of that working
> capital to pay taxes.
>
> I am not crabbing about taxes - that is the pet peeve of the businessman -
> just commenting on the working capital issue.
>
> Kris KM2KM
>
>
> Merschrod
> 123 Warren Road
> Ithaca, NY 14850
> 607 - 257-1734
> www.merschrod.net
> ----- Original Message -----
> From: "Jerry Haigwood" <jerry at w5jh.net>
> To: "'Discussion of Ten-Tec Equipment'" <tentec at contesting.com>
> Sent: Thursday, September 15, 2011 11:53 PM
> Subject: Re: [TenTec] (no subject)
>
>
> Rick,
>   Having run a small company, I can tell you predicting what your sales are
> going to be is more of an art than a skill.  Most companies will base their
> predicted sales on past sales.  But, many times that is a problem.  I am
> sure TenTec is no different than any other company operating today.  All
> companies are running really lean.  They do not want to pay a lot of tax on
> inventory so they try to get by with the smallest amount of inventory as
> possible.  Many times that means they run out of things.  The good
> companies
> still run out but they usually can tell you very accurately when something
> will be back in stock.  I am sure all we need to do is call TenTec and they
> can tell us when the product will be available again.  Unless, they are
> dependent upon some other company that has went belly up or is having
> financial problems, I would expect them to be accurate within a day or so.
> I like TenTec radios I want them to succeed.  I can't afford their new
> radios so I have to wait and buy someone's used radio.  If TenTec goes
> under, I lose my source of used radios!  No one will be buying new ones.
> Jerry W5JH
>
> -----Original Message-----
> From: tentec-bounces at contesting.com [mailto:tentec-bounces at contesting.com]
> On Behalf Of Rick - DJ0IP / NJ0IP
> Sent: Thursday, September 15, 2011 10:30 PM
> To: 'Discussion of Ten-Tec Equipment'
> Subject: Re: [TenTec] (no subject)
>
> There's been a lot of speculation.
> Here's my own wild guess.
>
> TT is a relatively small company, especially if you just look at their ham
> radio business.
> The tool up their line and produce just one kind of radio for a specific
> length of time.  Perhaps a few weeks.
> Then they retool their line and produce another radio.
> Then they retool and reproduce the next, etc.
>
> If business peaks on any particular radio which is not currently in the
> production run, it's going to be a while until these radios are back in
> stock.
>
> So my guess is, marketing's crystal ball may need re-calibrating, but their
> business is still healthy.
>
> 73
> Rick, DJ0IP
>
>
> -----Original Message-----
> From: tentec-bounces at contesting.com [mailto:tentec-bounces at contesting.com]
> On Behalf Of matthew martin
> Sent: Thursday, September 15, 2011 11:32 PM
> To: tentec at contesting.com
> Subject: [TenTec] (no subject)
>
> It appears that Ten Tec wants to go out of business. On their web site they
> have been out of stock on the Omni 7 for over a month and now they are out
> of stock on the Eagle with a tuner. They are forcing hams to buy rice
> boxes.
> Matt, W8MJM
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-- 
Paul Gentry
K4BWG