[ICOM] IC 706mkII G Price Increases

[David J. Ring, Jr.]

Presitge Electronics
http://www.prestigecom.net.au/default.asp?category=Amateur+Radio&subcat=Icom&openmenu=23

Has the 706mk2g for AU$1,249.00 which at current exchange is $977.39.

1,249.00 AUD Australia Dollars    =   977.390 USD United States Dollars

Which is not far from the USA price.  Boy, I wish I had bought one when it 
was selling for $250 less last year.  Of course, all the foreign prices are 
up due to the value of the US Dollar.

73

David
----- Original Message ----- 
From: "vk3ajj" <vk3ajj at optushome.com.au>
To: "'ICOM Reflector'" <icom at mailman.qth.net>
Sent: Wednesday, March 02, 2005 2:30 AM
Subject: RE: [ICOM] IC 706mkII G Price Increases


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)










----
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/


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