[TowerTalk] AES SK

Thu Jul 7 21:18:08 EDT 2016

Brick and mortar stores may run on thin margins, but  such a store 
depends more on "walk in customers". Truly thin margins require a lot of 
sales and with mass competition, the family owned store pays more for 
product than the chain's selling price.  They used to make money off 
service calls, but the chains have that contracted out.

It's not that they don't have a valuable name, but there is little 
market for a business that can not compete on an equal footing with 
stores and chains that may purchase a thousand times more of a product, 
with potential purchases of equal, or greater magnitude down the pipe.

In "the old days" the big catalog stores were difficult to compete with, 
but a single internet business like Amazon, or NewEgg makes mass 
purchases to one location as well as serving as established outlets for 
numerous other large stores around the country.  This gives those well 
established brick and mortar stores additional outlets and advertising 
in a realm for which they have no experience.  The Internet supplier may 
make only a few percent on these purchases, but they quickly add up 
while giving the brick and mortar store a larger purchasing clout with 
lower prices.

In "the old days" it was not uncommon for 4 or 5 hams to get together 
and drive several hundred miles over to the Ham Store in Muskegon to 
look at and purchase equipment when AES was the new kid on the block. 
Since then, I've become accustomed to purchasing new Ham Gear sight 
unseen, based on reputation and have not been disappointed...yet!  
However there are several ratings sites that I avoid after reading 
glowing reports about highly over rated equipment. Good, well 
constructed antennas are expensive, big and heavy. We can all identify 
hams with a shack wallpapered with awards using relatively simple 
antennas and equipment. I avoid reports that go to extremes calling said 
rig the greatest thing since sliced bread, or a POS.

I would have thought AES might have gone for something like that, but 
apparently not.  It is a new business model, that will, or can benefit 
both ends of the chain although it requires the store to think about 
volume purchases and thinner margins.

73

Roger (K8RI)

On 7/7/2016 Thursday 11:43 AM, ScottW3TX wrote:
> Most brick and mortar stores run on very thin profit margins that are
> getting squeezed smaller and smaller in this new economy shift. Costs
> (especially health insurance, regulatory, and base services to keep the
> doors open), are going up at 8 to 12% per year. Meanwhile competition does
> not allow for the final seller of products or service to raise prices.
> There are no longer excess profits in smaller businesses to fund owner and
> employee retirement plans. Therefore there is rarely any "goodwill" or
> "blue-sky" value in the sale. Just inventory (if it is sellable) and real
> estate.
>
> The bigger picture is what will happen to amateur radio sales companies?
> The trend is that the smaller, niche companies are either closing down or
> selling to the two dominant buyers.
>
> Is such consolidation good for the future of amateur radio?
>
> What happens when MFJ or DXE go up for sale?  Most likely the only
> potential buyers will be publicly traded companies that have less interest
> in the customer than the current stake-holders that are active amateur
> radio operators themselves.  And will there even be a buy when one factors
> in the demographics?
>
> When I took my 13 year old son to the DX Dinner at Dayton this year he was
> probably the youngest person there. I was probably the second youngest
> (49).
>
> Unless amateur radio quickly and effectively figures out how to connect
> itself into the STEM and Programming wave I fear that Nathan and I will be
> the only guys at the DX Dinner someday.
>
> At least he and I will have darn good antennas :)
>
> 73, Scott W3TX
>
>
>
> On 7/7/16 11:24 AM, "Alan NV8A" <nv8a at charter.net> wrote:
>
>> I have been surprised at the number of local businesses that are simply
>> shut down when the owner decides to retire: they have a "going out of
>> business sale," and that's it. I would have expected them to sell the
>> business -- with its "good will" -- as a going concern.
>>
>> 73
>>
>> Alan NV8A
>>
>>
>> On 07/07/2016 07:21 AM, Chuck Gooden wrote:
>>> I would of expected that, the company would be up for sale to someone
>>> that would be interested in keeping ham radio alive.  So I am waiting
>>> until I see an official notice.
>>>
>>> Chuck Gooden N9QBT
>>>
>>>
>>> On 7/6/2016 4:57 PM, K7LXC--- via TowerTalk wrote:
>>>> I just got an email from the sales manager of AES  that they're
>>>> closing the
>>>> doors at the end of the month. Hard to believe since  they used to be
>>>> one
>>>> of two 800 pound gorillas in the ham market. Apparently  stuff happens.
>>
>>
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-- 

73

Roger (K8RI)

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