[Elecraft] Price Increase Alert for mid October

[Jerry Moore]

Nice to hear Eric,
    My goal is to finish my K-Line without going off the books. I have the
cash, just not in the right pocket ;)
Jer

-----Original Message-----
From: Elecraft [mailto:elecraft-bounces at mailman.qth.net] On Behalf Of Eric
Swartz - WA6HHQ, Elecraft
Sent: Thursday, September 24, 2015 11:37 AM
To: ae4pb at carolinaheli.com
Cc: Elecraft Reflector Reflector
Subject: Re: [Elecraft] Price Increase Alert for mid October

Actually, wage, facility and development costs are pretty comparable at our
location to other states for our business.  Our HQ and manufacturing
facility (we build all our radios here in CA) is located in a lower cost
agricultural area of the state . (Watsonville and the Salinas Valley -
Steinbeck country..), so our cost of living for manufacturing employees here
for is substantially lower than other more populated areas of the state.
And we are not capital intensive, which insulates us from some of the tax
costs in CA associated with larger industries. Outside of the major
population hubs, the cost of operating a business here drops significantly.
CA also has an aggressive R&D / manufacturing tax credit, which for our size
of company, reduces our taxes -significantly-.  (Bigger industries probably
max this credit out and end up paying higher taxes.)

Our primary cost increases have come from our component suppliers, many of
whom are out of state. The wage and facility cost increases here have
tracked those in our type of industry outside the state.

Our engineering team is located both here at HQ and up and down the west
coast from Washington state to Arizona, which keeps those costs in control
too.

We also benefit from an amazing number of engineers, suppliers, consultants
and sub-contractors close by here who are related to the high tech industry,
which allows us to quickly and economically develop and manufacture
products.  That proximity is priceless and unique.  It is one of the reasons
we have been successful for the past 16 years.

73,
Eric
elecraft.com
_..._

> On Sep 24, 2015, at 6:03 AM, <ae4pb at carolinaheli.com>
<ae4pb at carolinaheli.com> wrote:
> 
> Have you guys considered moving the company to a state with a lower cost
of living?
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