[ICOM] IC 706mkII G Price Increases

[joel hallas]

Paul,

Thanks for the interesting insights! Another possible reason may be to 
set the stage for the starting price of the rumored next generation 
replacement, perhaps to avoid the 50% increase from pro2 to pro3 syndrome!

73, Joel, W1ZR

vk3ajj wrote:

>No. all the prices have gone up . The dollar has deflated and the yen has  
>gone up ergo your cost goes up not only on this but all other asian made
>radios
>
>
>Hello All,
>
>This is partially true but does not explain why the 706mk2g has gone up 30%
>in the last few months whereas other price increases have been comparatively
>modest.
>
>Although we are sometimes critical of the radio retailers, what is not
>commonly known is the degree of power that Icom (and presumably the other
>manufacturers) have in the day to day running of a radio retailer's
>business. This includes dictating level of stock held, minimum pricing
>policies and a hell of a lot more.
>
>Rumor has it that Icom dictated (over the last few years) that retailers (in
>the US) hold / purchase heavy levels of stock which just did not accord with
>market demand. To get their cash back, retailers were forced to heavily
>discount the stock and at times were selling at or below break even.
>
>In addition to creating problems for the US retailers - this discounting
>created a situation where say an Icom 706Mkg could be purchased for say
>US$729 in the US but was being sold at a recommended retail of US$1,300 in
>other countries (same radio / same warranty). This situation has created a
>massive market in "grey importing" whereby Hams in the high priced countries
>(like Australia) simply imported directly from the US - saving hundreds
>(even after freight / duties etc) when compared to the local retail price -
>but of course creating an untenable situation for the local (say Australian)
>Icom retailers who were compelled by Icom to respect the higer pricing
>regime.
>
>It is my opinion (I reiterate opinion) that Icom in particular is now
>looking to unwind some of these market inconsistencies by:
>
>Increasing prices in the US - whilst dictating a minimum retail price thus
>eliminating the deep discounting prevalent in prior years.
>Reducing prices in other parts of the world - the 706 has basically halved
>in price here in Australia over the last 2 years with approx half that
>reduction being attribtable to a stronger Aussie Dollar.
>Most controversially here in Australia, Icom Australia has also taken the
>decision to refuse servicing on all radios not sold by their local
>Australian authorised distributors. This means if your Icom radio is a
>direct import (whether you knew this to be a fact or not)- Icom will simply
>refuse to repair it (at any price).
>
>If my reading of the situation is correct - it is likely that US hams can
>expect to pay more for their new radio gear going forward - whilst Hams in
>other parts of the world (at least where sufficient direct importing
>competition exists) will probably pay less.
>
>Of course, all of this theorising is subject to the response of Yaesu,
>Kenwood and Icom's other Ham radio competitors. In theory it may seem
>plausible for Icom to solve the above issues by simply hiking the price on a
>now techologically tired radio like the 706 by 30% over a couple of months.
>But - if Yaesu, Kenwood etc do not follow suit - Icom run the risk of losing
>market share (Hams will vote with their wallet)and the whole Icom pricing
>strategy may have to be reviewed all over again.
>
>In the meantime, the retailers remain the meat in the sandwich getting
>pulled this way and that (so don't whinge to them about the recent price
>increases).
>
>Of course - it is also probable that the 706 is an ideal guinea pig for this
>strategy shift. As a successor radio to this golden oldy is seemingly
>imminent - why not "milk" as much out of the "grand old cow" as you can
>before she gracefully passes into the annals of ham radio history.
>
>All just my personal speculation / opinion of course.........
>
>Cheers to all
>
>Paul (vk3ajj)   
>       
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>----
>To: icom at mailman.qth.net
>Subject: Re: [ICOM] IC 706mkII G price 
>
>
> 
>
>No. all the prices have gone up . The dollar has deflated and the yen has  
>gone up ergo your cost goes up not only on this but all other asian made
>radios
> 
> 
> 
> 
> 
>
>
>----
>Your Moderator: Dick Flanagan K7VC, icom-owner at mailman.qth.net
>Icom Users Net: Sundays, 1700Z, 14.316 MHz
>Icom FAQ: http://www.qsl.net/icom/
>
>  
>