[Elecraft] On the advisability of selling kit radios

[Dave - AB7E]

That's pretty silly when you consider that any amplifier will take (or maybe has already taken) a LOT of development work, likely incur a lot of tooling expenses, and would provide very little pull-through for their other products (which already sell very well on their own).  If they don't price it realistically it would at best be one of those situations where somebody advertises a product but hopes nobody buys one.

If you were running your own small business and trying to figure out where to invest your time and your money, would you make that decision?  I sincerely doubt it.  It's one thing for a heavily-capitalized company like Toyota to market a loss leader product for the sake of image and long term market share ... it is quite a different matter for a smaller one.

If Elecraft can introduce a nifty power amplifier and sell it for a decent profit, more power to them.  Expecting them to sell you a multi-$K item for no financial return is simply fanciful.

Dave   AB7E



------Original Mail------
From: "Phil Hystad" <k7peh at comcast.net>
To: "Conway Yee" <yee at bronze.lcs.mit.edu>,
    <elecraft at mailman.qth.net>
Sent: Mon, 8 Feb 2010 22:20:38 -0800
Subject: Re: [Elecraft] On the advisability of selling kit radios


The Elecraft K3 may have a 30 % margin and maybe the K2, being in production
for so long is now about 50 % margin.  But, a new solid-state amp may only be
5% or 7% -- enough to make their customers happy without losing money but not
earning money like a K3 or a K2 either.

phil, K7PEH