[TenTec] Merger

[Bob McGraw - K4TAX]

I for one believe that a $500 to $1000 dollar radio packed with reasonable 
features and functions and with a accessories would kill the market.  Money 
is to be made on quantity/volume production.  Plus it would need to be 
prefaced with about $200K of effective hype!

In other words, 10,000 units @ $550 ea at 10% margin is $550K.  That 
produces more money than 1000 units @ $750 at 30% margin which is $225K. 
This does not include any advantage of parts qty purchases with the larger 
manufacturing qty.  Although the larger qty does require more initial 
investment.  Of course one could argue that production of 10 lots of 1000 
would produce more money. But, how many buyers would be lost with the price 
differential between $550 and $750.  I'd say 30% or more.

Although FOX news had a nice piece on ham radio, it is a small or very 
narrow market.

http://www.foxnews.com/tech/2014/05/19/ham-radio-old-technology-gets-new-respect/?intcmp=obnetwork

This is for you marketing gurus to discuss. I'm only a lowly engineer that 
only knows ohms, volts, amps and watts.

73
Bob K4TAX






----- Original Message ----- 
From: "geoffrey mendelson" <geoffreymendelson at gmail.com>
To: "R. Eric Sluder-W9WLW" <resluder at yahoo.com>; "Discussion of Ten-Tec 
Equipment" <tentec at contesting.com>
Sent: Tuesday, May 20, 2014 6:56 PM
Subject: Re: [TenTec] Merger


> On 5/21/2014 2:11 AM, R. Eric Sluder-W9WLW via TenTec wrote:
>>
>> Highest margin per unit = Hacker/Maker/Kit  e.g., Rebel, Patriot, etc. 
>> (caveat, to do this they'll have to upgrade their way of socializing the 
>> community development effort) <Why the Sales Manager mentioned Facebook, 
>> and other social media>
>>
>
> Eric,
>
> The problem I see with that is the cost of the units. While they seem 
> cheap enough, since they are open design, and sold to a community with no 
> brand loyalty, someone in China will duplicate them, and sell them as a 
> kit on eBay.
>
> A great example of that was the 3 band CW only rigs sold from China. They 
> appeared in the US as a complete kit of parts (no case), sold from Canada. 
> The important point is that they were not sold from the US, bypassing FCC 
> regulations.
>
> Ten-Tec bought a licenses to sell them and had to make modifications and a 
> significant investment.
>
> Ironically, MFJ did the same thing, and they and Ten-Tec were (are?) in 
> direct competition selling different versions of the same radio.
>
> Since they were developed in China, they did not have sufficient output 
> filtering, which is why neither radio sold in the US has 3 band transmit.
>
> What worries me is that with the low cost ($20? $50? $100?) of a kit 
> consisting of a circuit board and a bag of parts, will people buy the 
> Ten-Tec? My fear is that the brand loyalty is part of the generation that 
> won't be buying the radios in the first place.
>
> Geoff.
>
> -- 
> Geoffrey S. Mendelson 4X1GM/N3OWJ
> Jerusalem Israel.
>
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