[TenTec] Orion 2 situation

Sun Jun 30 18:01:42 EDT 2013

Having worked in electronic manufacturing for SONY, a Japanese company,
for 15 years, I do understand the issues with mass purchasing power,
large production runs and such.   When manufacturing and materials costs
approach the retail price for any reason, there's not enough money to pay
the salaries and light bills.

In my past history,  I much preferred to manufacture one million $1.00
products as to manufacturer one $1,000,000 product.  Perhaps the way of
the expensive radio falls the same way.  It is mass units that make a
profit and keep the bills paid.

I hate to learn that the Orion II is no longer being manufactured.  It is
still one of the best performing radios on the market today.   But hey,
it is getting "long in the tooth".  Time to move on.  In many cases
semiconductor companies will likewise stop making certain components and
if did make small quantities, the cost would be prohibitive.  Just the
life in business today.

Each and every company will face the same decisions one day, maybe sooner
or later, but fact is, when a part is no longer available at a reasonable
price, the product future is ended.

73
Bob, K4TAX

> 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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>

-- 
Disclosure:
I am a Tentec Ambassador and compensated according to the Tentec
Ambassador plan. I serve as a volunteer beta test person for the Omni
VII, Eagle and Argonaut VI products.   Otherwise, I hold no business or
employment interest with Tentec.