[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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