Rick is right.
As a co-owner and GM of a business, I know firsthand - I sign all the checks-
Rent, insurance, including product liability insurance, inventory taxes, phone,
internet connection, external auditors, environmental consultants, power,
direct labor, medical insurance, workers comp, social security, managerial
staff and the list goes on and on.
Those who are on a salary don’t always realize the costs involved in running a
business. In our particular business if total net sales per employed person
per year is less than about $240,000.00, yes, two hundred forty thousand US
dollars, the company isn’t profitable. And in our particular sector we are
considered a “lean” operation. And unlike many US corporations in our company
no-one earns more than ten times the salary of the lowest paid worker and that
includes the GM.
73 de Pepe WP3HW
On Jan 5, 2016, at 7:17 PM, rick@dj0ip.de <Rick@DJ0IP.de> wrote:
Jim, that was a silly comparison (percentage of purchase price), which I'll
counter with another silly...
Look at the cost of and Ink Jet printer then the cost of ink.
If you need anything fixed, you must pay to have it repaired.
Today's radios require computer skills as well as radio repair skills.
We have to pay by the hour.
If we don't get the $1400 radio fixed, then we've lost our entire
investment.
If we pay $265, get it fixed and keep it several years, then the COO of the
box was $1665, minus what we can sell it for, divided by the number of years
we owned it.
When you factor the $265 into that number, it doesn't look so bad.
P.S. Never believe a statistic unless you've forged it yourself! ;-)
73 - Rick, DJ0IP
(Nr. Frankfurt, Germany)
-----Original Message-----
From: TenTec [mailto:tentec-bounces@contesting.com] On Behalf Of Jim Vohland
Sent: Tuesday, January 05, 2016 10:21 PM
To: tentec@contesting.com
Subject: Re: [TenTec] Service
I'm not an attorney but did stay in a Holiday Inn Express once. Seriously
not sure you can compare needing an attorney to needing a repair on an
actual product that I purchase. The system requires that I use you. Not many
options available. Competition would make your (attorneys) rates more
competitive. Where else can I can for support/repair on said product. I
don't have a problem at all with the first hour costing 140 and additionals
125. That does allow a one hour repair to only costs 140 not the 265
originally stated. Big difference.
Another thing to consider. If for instance I have a Eagle purchased at
todays price of 1400. After warranty period, it would cost me 10% (140) of
the purchase price just to get in into the repair door. To compare this to
other items as is common now just consider if you took your 30,000 car in
for repair. Excuse me sir, it will be 3,000 just to take in and and get it
looked at. Then it will cost you an additional 2650 per hour for
repairs......And so on and so on.
It could get ugly. Quick.
I hope things work out for this new Ten Tec venture. I truly wish him well.
But not at any costs. I do not run a business nor can I claim any form of
guru knowledge regarding a business. I know you have to make a profit but
you can price yourself out of the market as well. If the repair business is
that busy and loses so much money, then perhaps it needs a close look.
Finally I am pleased to get the new explanation of pricing and I think it is
reasonable. The original statement was not and we shouldn't be ostracized
for pointing that out. Especially if you want us to keep buying and using
your products.
> To: tentec@contesting.com
> From: k4gm@k4gm.com
> Date: Tue, 5 Jan 2016 16:01:42 -0500
> Subject: Re: [TenTec] Service
>
> Like Paul W9AC I am an attorney and fully agree with his observations.
> When someone says something along the lines of "You mean you are
> charging just for talking to me" I usually point out that the caller
> would not be calling me unless he thought what I might say had value
> and that while we might disagree on the proper amount of that value,
> if the caller would like further information, I have put a value of
> $xxxx per hour on my time. Done at the outset creates respect and
> appreciation or serves to weed out folks who are just seeking real value
> for free. This is all the recent press release does IMHO. For those
> who squawk at the particular rate I suggest you look at Icom or Elecraft
> for their rates. C'mon everyone: Let's let the new guys get up and
> running a while before giving them grief. Phew, I've added my 2
> cents. Now back to my telephone....
>
> 73, George K4GM
>
> FISTS #10313
> SKCC #7241S
>
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