[Elecraft] Price increases - I feel loved....
Augie Hansen
augie.hansen at comcast.net
Thu Mar 6 11:04:05 EST 2008
> We must have had different economics courses. As I understand it, the
> weaker dollar makes American goods more attractive to overseas buyers,
> not less attractive. Elecraft and other companies that price their
> rigs in dollars receive the same income in dollars when they sell a
> rig overseas as when they sell it here. But as the rig is effectively
> cheaper overseas, they sell more and their income in dollars goes up.
Your analysis of the consumption side of the story is on target, but the
whole economic picture involves a production side, too.
It is costing Elecraft more to buy parts, many of which come from
off-shore sources. And the cost of transportation is up as well. Those
cost escalations affect the margin adversely for a given price. To
obtain and maintain a reasonable profit, prices need to be raised.
Gus Hansen
KB0YH
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