[TowerTalk] US Tower price increase

[jimlux]

On 1/2/17 11:38 AM, Jim Brown wrote:
> Great response, Jim. BUT -- the increase noted by the original poster
> was that the increase was overnight!
>
> Several possible reasons for this. One is that business operations for
> the ham market are often supported by higher volume and higher margin
> operations for other markets. When those other markets fall apart, they
> no longer support the ham market, or contribute to economies of scale
> that allow lower prices.
>
> Another is corporate mergers, which can change business priorities,
> change where products are manufactured.
>
> But assuming corporate greed as the reason for all such price increases
> is unreasonable. It certainly can be, but there are many other reasons.
>

yes, I agree.. usually it's a "it's not economic to sell at that price 
any more, compared to other products".  I was more commenting on the 
"back in 85" comment.

I know someone who is buying 50 tower trailers with 100+ ft towers on 
them. That's a much better sale proposition than onsie, twosie sales to 
individuals.  Whether through distribution or not, the support costs 
tend to be "per customer" not "per tower".

As for the overnight x3... That's a "we don't really want to be in this 
business" or "our cost structure radically changed" kind of increase.

I've also seen that when you have a business founder of a family 
operated business retires/sells out: the founder didn't have any debt 
service costs, was willing to live out whatever margin there was.  The 
new owner had to get a loan to buy the business and actually has to pay 
employees a wage and benefits - all of a sudden instead of "my wife does 
the assembly and we're on the same insurance" it's "I've got to pay a 
reasonable wage and provide vacation, insurance, etc.", I've got to pay 
rent and storage costs, I've got to pay for the "cost of money".

A similar phenomenon occurs when a partner retires/dies/leaves and the 
remaining partners have to buy them out.

Or, it's just - we don't want to leave existing customers totally in the 
lurch, but we can't subsidize them either - we'll be responsible and at 
least make parts available, but at cost that is basically "fabricate 
from scratch individually"