[Elecraft] Elecraft's Business Model

N2TK, Tony tony.kaz at verizon.net
Mon Feb 27 09:11:59 EST 2012


Well, over the years Elecraft has solicited input as to features and new
products. I think this continues to be a great idea. And we have been
surprised a few times about a new product that did more than we had
anticipated. An example is the XG-3. Some of us pushed for a 6-band signals
source. But what we got was way beyond that. 

I like their way of thinking. I believe giving our input as to what we would
like is a good marketing practice. Because others have viable products does
not mean there still isn't a market for something that goes above and beyond
what is currently available or fits a particular nitch market at a profit.

Am I still interested in something like the KPA1500 that was displayed
several years ago at Dayton even though I have a very nice 1500W tube amp?
You betcha. But I want it to be in my basement and operate it remotely from
the shack either with a hardware or software remote controller. And I want
it rock solid like my tube amp. Instant on is a nice feature.

I want a remote "K3-0/KX3" so I can throw it in my brief case to operate my
home station when I am traveling on business and sitting in a hotel room.
But I want it self-contained with everything in one case so I don't have to
haul a bunch of stuff around - almost empty box, remote controller, walwart.

I want to be able to plug in a keyboard in my P3 to operate digital modes
with the screen displaying the decoded signals and my transmitted info.
Maybe this one isn't too far off?

Also would want an improved KRC-X that would control manually and
automatically all of my antennas from the K3. And I would want to select two
different banks of antennas using the front panel ANT switch. This way on
any band the KRC-X would automatically select a particular antenna I had
programmed. And if I had a second antenna on a particular band I could
select that from the front panel ANT switch on the K3. Trying to keep things
focused on the K3 so I don't have to be moving hands around and possibly
making mistakes when changing bands in a contest or DXing. Maybe stack
KRC-X's so you can toggle though banks of antennas if you have more than two
antennas per band?

Got in my wish list :-)

73,
N2TK, Tony




-----Original Message-----
From: elecraft-bounces at mailman.qth.net
[mailto:elecraft-bounces at mailman.qth.net] On Behalf Of Jim Brown
Sent: Saturday, February 25, 2012 5:24 PM
To: elecraft at mailman.qth.net
Subject: [Elecraft] Elecraft's Business Model

On 2/25/2012 1:04 PM, Oliver Dröse wrote:
> But what do monitors/displays have to do with amateur radios/transceivers?

The key here is that products that are high volume items that can be sold to
a very large market are CHEAP because they are built and sold in very high
quantities.  This means that design, manufacturing, sales, and support costs
can be spread over hundreds of thousands of pieces rather 
than the 5,000 or so that is typical of a popular ham radio rig.   It is 
also true that mass market products are sold with very low mark-ups over
their cost.

For these reasons alone, it is pointless for Elecraft to manufacture or
market anything  in product categories for which high quality products can
be bought in the mass market.  This includes products like microphones,
headsets, computer monitors, and so on. We can buy CM500 headsets for
$40-$50 -- Elecraft would have to add $20 or so to that cost to sell it to
us, and they still wouldn't be making money on it.

It also does not make sense for Elecraft to build products in categories
that are well covered by other high quality manufacturers.  One big reason
that there IS a KPA500 is that Alpha does not sell a 500W amp. 
Another is most  other 500W amps aren't great. And Elecraft is building the
KAT500 because other options in that product category either aren't so great
or that the KAT500 can provide much better integration with the KPA500.

73, Jim K9YC
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