[TenTec] Orion 2 situation

[GARY HUBER]

Although I'm not an ORION owner, I do agree with Eric. In manufacturing or 
purchasing of electronic components, volume has everything to do with 
keeping per unit costs down (way down). Ten years ago I was involved in 
purchasing Motorola Land Mobile systems including the repeaters and 
portables, also cell phones, and pagers in large volume and at one third the 
cost of recommended retail..... NOT thirty-three percent discount but rather 
sixty-six percent discount. I was buying by the skid, pallet, or thousand 
units. Keep in mind Motorola manufactured their own Integrated Circuits and 
control processors but also purchased components at volume discount from 
other manufacturers when it made economic sense in order to sell to hundred 
or thousands of customers like me.

We have to keep in perspective that TenTec builds their product for a niche 
market with a relatively low demand. Production runs of 100 units at a time 
are the norm for their Amateur products. While the overall production 
numbers for a product may run in the thousands, the production runs are 
still based on 25, 50, or 100 units at a time. Purchasing the components for 
those production runs are also rather low events too so component parts are 
not as heavily discounted as Motorola or the Asian big three experience.

I've been buying TenTec equipment since the early 1980s. I've had a good 
experience with both their products and service. You can see my station via 
my callsign at QRZ.com

DISCLOSURE:
This is to inform all persons, I am a Ten-Tec Ambassador and I receive 
compensation according to the Ten-Tec Ambassador program. I have used and 
owned Ten-Tec amateur radio products for over thirty years. I hold no 
employment relationship, no financial interests nor do I conduct any 
commercial business, direct or indirect, with Ten-Tec.


73 ES DX,
Gary -- AB9M

-----Original Message----- 
From: R. Eric Sluder
Sent: Sunday, June 30, 2013 1:15 PM
To: TenTec at contesting.com ; svtincup at yahoo.com
Subject: Re: [TenTec] Orion 2 situation

I'm going to chime in on this discussion, and it will sound like I'm 
defending Ten-Tec, however my intent is to explain a possible (and likely 
feasible) scenario.

The big three out of Japan sell not only to the Amateur market, but to 
commercial markets - to set the stage... watch Deadliest Catch on Discovery 
and you'll see ICOM HF rigs used quite often.  I've used ICOM marine radios 
before on HF and VHF myself.  Then there is the Land Mobile  Radio market. 
Kenwood, Yaesu and ICOM all have a piece of it and have chipped away at 
Motorola for years.  All of my 900 MHz rigs are Kenwood LMR radios retuned 
to our shared band on 900 MHz - I don't find any Ten-Tec commercial 900 MHz 
rigs because if I could... I would own them.

The point to my paragraph above is.... their buying power/capabilities for 
components is far greater than Ten-Tec's financial capabilities.  Many of 
the final transistors used in the rigs today can be used in both Ham and 
commercially type accepted radios which equates to a much less reduced price 
per unit cost for the big three compared to an order that Ten-Tec can afford 
to make.  The big three can establish a supply chain agreement with Asian 
manufacturers that will assure components, pre-built assemblies and other 
necessary supplies for a very foreseeable future.  I suspect Ten-Tec cannot.

If Ten-Tec was having pre-built sub-assemblies made oversees (or even here) 
and their supplier wants out of that biz due to low volume (or exchange 
rates have weakened the suppliers profits to near nil) that puts the burden 
on Ten-Tec to either setup assembly operations to resolve the deficit, 
redesign the radio (not likely) or cease the sale of the product.  Typically 
the decision is made once a financial analysis is done to determine if a 
profit can be made (remember they're not a nonprofit business) and the 
impact to internal resources is so great it negatively influences other 
product lines.

I seriously doubt it was their desire to stop the sale before a replacement 
product was available, and I'm sure they realize there will be a loss in the 
customer base for the high-end market.  However, as I was once told... if 
you're out of options; you have to just stand their and take it like a 
jackass in a hailstorm and then move on!

Much of Ten-Tec's customer base is built on those of us who like their QSK 
design, made in America, and just like to follow one manufacturer instead of 
owning one of everything.  For me, its all of that and... I can even stop in 
for a tour of the facility.  I can talk to the folks who are defying the 
odds of a once nearly all American made equipment market by staying in 
business in the foothills of Tennessee.

I close with this... when I bought an IC-703 and it was popping  finals so 
often it was like a kid going through candy - I could not have an email 
dialog with anyone at ICOM engineering.   Fast forward to now and owning an 
Eagle... I can (if needed) email John Henry or Paul and get an answer! 
That's a nice chunk of insurance when you drop four figures into a hobby.

Long live all of the American Ham radio manufacturers!

73,
Eric
W9WLW

Written on a mobile device, so please excuse the brevity.
Sent from Yahoo! Mail on Android

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