[Elecraft] Elecraft P3 panadapter at the Orlando Hamcation

[KM4VX]

Harry: Let's keep the exchange civil. There is nothing "silly" about my views or those you put forward. You  demonstrate the success of good marketing by both Microsoft and Elecraft. I am not taking anything away from either, but this is about marketing not technology. Most of these companies are on the cutting edge, whether they are here or elsewhere. How you choose to view them is called "marketing."
 


Date: Sat, 13 Feb 2010 09:08:14 -0800
From: ml-node+4566946-827498920 at n2.nabble.com
To: roncerra at earthlink.net
Subject: Re: Elecraft P3 panadapter at the Orlando Hamcation

"What drives the price of a new product more than anything is marketing. Microsoft could sell Windows 7 at profit for 50 cents but charges $149.00. The P-3 price is being defined here on the reflector by those of us who are so enthusiastic about Elecraft;...The P-3 could sell for a few hundred dollars at profit, similar to other panadapters. Instead, we are talking about more than double that price." 

This is just plain silly. 

First, Microsoft could sell Windows 7 at $300. Why? Because it can. Because it has a by far dominant position in the market. Because people and corporate entities will pay for it. Because Microsoft is in the business to make money. 

Second, I would wager that you, like most of us, have very little factual insight into Elecraft's cost structure including: R&D, manufacturing, product marketing, distribution and order fulfillment, warranty support and on-going customer support. Further, we have no insight into what return on investment Elecraft's management and investors expect to see with each new product plan and commercial launch. Subsequently, apart from market forces (competitive products and pricing, demand, etc.) P3 pricing is going to be highly dependent upon Elecraft pricing and margin requirements far beyond "price being defined here on the reflector..." I can assure you the probability is very great that if pricing was defined by the reflector Elecraft and many other vendors would not be in business. 

Third, and related above, "the P3 could sell for a few hundred dollars at profit..." Don't know how you can make this claim. Further, what other panadaptors? SDR-IQ is a specialty device intended for a market far broader than "panadaptor" and the ham community and is highly dependent upon 3rd party software, PC processing, etc. Softrock and LP-Post implementations are more kit oriented also requiring additional 3rd party content. The P3, on the other hand, appears to be designed as (a) integrated with the K3 and (b) self-contained hardware implementation (sort of guessing here as no real specifics released). The only recent and maybe relative comparison would be the Yaesu DMU-2000(at $750 to $850) as an outboard, dedicated accessory (although I would wager the P3 implementation will be far superior with respect to technology platform and panadaptor functionality). 

Keep in mind that while Elecraft's innovation, R&D quality, manufacturing quality, etc. sets the company apart from many other vendors in our hobby, the company has to make money not only to keep its owners happy but to plow back into the business. Don't think of it as a non-profit for the ham community. 

Harry WE1X 




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