[ICOM] IC 706mkII G Price Increases

[Ed Yeary]

A friend of mine tells me that Icom always raised the price of a unit right
before discontinuing it. Is this true?
Ed Yeary W4TEY
Technical Specialist ARRL Dist. 9, TN.
VE W5YI Group
USVHSSC

----- Original Message ----- 
From: "David J. Ring, Jr." <n1ea at arrl.net>
To: "ICOM Reflector" <icom at mailman.qth.net>; ""vk3ajj""
<vk3ajj at optushome.com.au>
Sent: Wednesday, March 02, 2005 12:25 PM
Subject: Re: [ICOM] IC 706mkII G Price Increases


> 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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> ----
> 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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