[Elecraft] OT: Motorola buys Yeasu. Wow!

Wed Nov 7 07:43:53 EST 2007

I have to disagree with you Julian, first off I worked for one of the
major 
dealers in the US market for about 10 years and can tell you that this is

a 2% business for major gear. Sure, they make some profit on accessories,

but lets face it, few guys buy a ton of accessories for their HT's, and
darn 
few for mobiles or HF stations. 

Why do you think that ham dealers across the US have been folding? 

Why do you think there's been a lack of dealer and manufacturer presence 
at hamfests and shows? 

It's because it's not profitable to do it. A ham dealer has to pay his
bills for rent, 
salaries, stock, electricity, taxes, etc. just like any other buisness
does. 
A business must turn about $10,000 in sales at a show or hamfest to make
it
worthwhile to show up. This covers salaries, gas, expenses in moving
stock to
the show. 

Do you work for free? Why then do you expect the ham dealers to or their 
employees to?? Would you get up at 3 AM on a Sunday, drive for a few
hours, 
set up your stand, stand outside in the hot sun/rain/whatever and then
pack it all
up just to unload and be back at your job on Monday for free week after
week? 

What you the consumer are paying for is the service behind the sale and
the ability
to actually see things before you purchase them.  The dealer has an
upfront cost for 
a storefront, utilities, stock, knowledgeable employees, and other
expenses that like 
any other company he/she wants a return on their investment for.

When I was on the other side of the counter, I heard all the time how "I
can get it cheaper
by the 1-800-XXX number." Then fine and go use the 800 number but when
it's needing 
repairs or you need advice, go call the 800 number and don't come bother
me. Oh, they
don't offer advice or solve issues on the 800 order line? There's a "no
return" policy on 
defective equipment? No return policy on unwanted gear? What a shame... 

How many times I've had customers play "let's make a deal" at the ham
store? This is a 
business, not a hobby for us. You don't walk into your local grocery
store and argue 
with the checkout clerk how cheap you can get milk somewhere else do you?
When you
walk into a major department store, you don't argue that you can buy the
same pair of pants
cheaper somewhere else do you? Then why do you do it at a ham store? 

Sure there's tons of places to get stuff on the internet and I'm sure a
lot cheaper, but if the ham
community wants ham stores to be around and not everthing to be either a
800 number or on
the internet, then you will have to support your local store and local
dealers, or they'll disappear.

We've lamented more than once that our owner could close the doors, sell
everything
and put his money in a regular savings account at a bank and make a
better profit than
we turn sometimes. 

Enough said.... back to my hole.....

73,

Joe KI3B

On Wed, 7 Nov 2007 09:15:03 +0000 "Julian G4ILO" <julian.g4ilo at gmail.com>
writes:
> The disappearance of companies like Yaesu and Kenwood and their 
> boring
> products could be the best thing to happen to ham radio for a long
> time. It would create new opportunities for small companies like
> Elecraft or Juma (http://www.nikkemedia.fi/juma-trx2/). Small
> companies selling direct via the Internet can compete well on cost
> with the big mass produced products because the dealers and
> distributors handling the latter products demand such huge profit
> margins.
> 
> I think that as the Chinese gain more personal wealth (and they are 
> -
> you may not see many Chinese tourists in the USA due to visa
> restrictions but they are in Europe now in droves) and get 
> interested
> in ham radio you will see more Chinese ham radio products. I have a
> Chinese 2m HT (though it's really a wide band VHF model that I've
> programmed 2m channels into.) The Chinese are not really innovators
> though. Their strength is in manufacturing cheaply products that 
> are
> designed elsewhere - something Wayne and Eric might want to think
> about if the K3 order book keeps growing faster than they can make
> them. :)
> -- 
> Julian, G4ILO K2 s/n: 392  K3 s/n: ???
> G4ILO's Shack: www.g4ilo.com
> Zerobeat Ham Forums: www.zerobeat.net/smf
> 
> 
> On Nov 7, 2007 6:00 AM, Corboy-Poteet <disorder at sbcglobal.net> 
> wrote:
> > My thoughts (semi-serious) were that should the Amateur products
> > portion of Vertex include manufacturing and marketing it might be
> > worth looking at. Internal access to the Japanese market and I 
> would
> > think that Elecraft could cherry pick for the capabilities they 
> could
> > use (like manufacturing). But you are right, even should Motorola 
> be
> > able to do a clean split of the amateur radio portion they would
> > certainly expect the buyer to assume all warranty obligations and
> > other repair, not a pleasant prospect.
> >
> > But probably all of Yaesu amateur products are so inextricably 
> tied to
> > Vertex commercial and government gear that a clean separation will 
> be
> > impossible. Motorola is certainly not going to continue turning 
> out
> > Yaesu amateur radio products but the 20% left in the hands of the
> > company's founder may do so in some form.
> >
> > Ironic, if Yaesu fades and Kenwood slowly withdraws, we may get 
> back
> > to the point where the big names in amateur gear are again 
> American
> > and (perhaps) European. I guess China could enter the market but 
> I
> > would expect that the Chinese business model does not include low
> > volume endeavors like Ham Radio (unless, of course, Elecraft 
> sells
> > hundreds of thousands of K3's and the Chinese notice). :)
> >
> >
> > Mike   W5FTD
> >
> >
> >
> >
> >
> >
> > > Ha ha ... someone hand Wayne the smelling salts ...
> > > he likely passed out after reading that post (Elecraft acquires 
> Yaesu).
> >
> > > Guess opportunity and problems come in bunches!
> >
> > > w9gb
> >
> >
> > >> You know, this may be Elecraft's opportunity to make its first
> > >> corporate acquisition: take Yaesu off Motorola's hands (this 
> assuming
> > >> that Yaesu has some manufacturing and marketing assets). 
> Though
> > >> probably Yaesu manufacturing is contracted out to China; 
> perhaps not a
> > >> net plus for Elecraft.
> > >
> > >> Mike  W5FTD
> >
> >
> >
> >
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