[Boatanchors] INFLATION

[Duane Fischer, W8DBF]

Todd (and all) 
	
	Let me share a real example of what this does, as it happened to me last month.
	
	
A firm called Nice Network was hired by my insurance company to provide them
with 'actual cash values' of my damaged stereo and radio equipment.
Additionally, to reccomend comparable replacement items. Most of the damaged
items were vintage. 	
	
The company used EBAY prices as a benchmark. They used ads they found on
bulletin boards. There was no place for them to go to get an actual value ona
Hallicrafters S-120 or Sony TA-1144 (1970 solid state stereo amp). 	
	
If the price was high, the insured might benefit, but if the price was low, the
insured might lose. This was what happened in my case. Because they could not
find one vintage transciever, they picked another they thought might be like it
and quoted that value. The man who did the work for Nice Network was of the
consumer grade mentality. He had no experience or knowledge with high end audio
or radio communications equipment. The net result was misinformation fed back to
the insurance company. In short, I was lowballed in a big way. 	
	
I was able to document all of what I had and prove its value. After some moving
up the ladder of the insurance adjuster ladder of rank, I finally was able to
convince the powers that be that the company they paid was simpy mistaken. they
agreed. But only because I supplied evidence of the equipment's value from the
real market. I brought in consultants to state the values and to show with
specifications the comparable units for a fair replacement.    	
	
This was a two month struggle. I did win, but I am sure not many in this
position are as fortunate as I was. I was prepared with the ways and means to
supply the information to validate my contentions. 	
	
So the prices shown on electronic auctions do have a great impact on individuals
even for replacement cost insurance claims. 	
	
Now what is truly fascinating, is when more of an item ever produced suddenly
start being sold! Hmmm. Like the proverbial fruitcake. Only one that keeps
circulating among thousands for decades!	
	
Duane W8DBF	


----------
From: Todd Bigelow - PS <tbigelow@pop.state.vt.us>
To: Duane Fischer, W8DBF <dfischer@usol.com>
Cc: JOE <k1ike@snet.net>; Boatanchors@mailman.qth.net
Subject: Re: [Boatanchors] INFLATION
Date: Friday, January 31, 2003 10:32 AM


"Duane Fischer, W8DBF" wrote:
<snip>

> The down side is, that sellers believe that these outrageous prices accurately
> reflect what the market value of a given item is, and then try to sell theirs
> for the same amount. The losers are the 'real' collectors who do not have that
> type of cash to throw around. Hence, the 'real' collectors many times are
denied
> a piece of history that in their hands would survive and prosper.

Now you've hit the nail right on the head here, Duane. This is what I see as the
only true potential problem with a high selling price on an item, particularly
so
visibly. For many years collectors have bought automobiles and any other number
of
things and been willing to pay a high price. Most of the time this takes place
in
private with little or no fanfare (like the KW-1 bought by a fellow in Japan for
$46K+ and air freighted over), so it has little if any impact on the rest of the
market. When you have high visibility like a public auction, then it suddenly
changes. The recent Barrett/Jackson auto auction in AZ is a good example as it
is
considered as the benchmark for prices the remainder of the year.

The good part of the $10K SX-88 is that it will likely bring a few more out into
the
light of day to be restored, enjoyed, and used (this is when you find out
exactly
what certain people prefer more - radios or money). Bad side of this is that as
you
pointed out, the sellers will expect similar prices simply because one or two
people
were willing to pay a very high price for a very clean example. Some will be
foolish
enough to bite and gobble up what they can get fearing prices will go higher
(the
Collins feeding frenzy a few years back comes to mind, and now you see it for
sale
constantly) instead of seeing this for what it is: a person who appreciates old
gear, wanted this radio and could afford to pay whatever it required to have it.
However, I tend to believe as I said before that someone willing to pay that
much
for a fairly scarce (but very clean) example of a radio does so because they
want it
to enjoy and not to turn a profit on. We have to know that this radio will
likely
survive longer than many others out there. It's clean, it's cool, and it's owned
by
someone who's estate will draw great focus and attention one day (not trying to
rush
anything here!).

I'm so glad I'm in the 'user' category and relatively poor in comparison....I
don't
ever have to worry about such issues. Makes enjoying radio so much simpler.

de Todd/'Boomer'  KA1KAQ