Most brick and mortar stores run on very thin profit margins that are
getting squeezed smaller and smaller in this new economy shift. Costs
(especially health insurance, regulatory, and base services to keep the
doors open), are going up at 8 to 12% per year. Meanwhile competition does
not allow for the final seller of products or service to raise prices.
There are no longer excess profits in smaller businesses to fund owner and
employee retirement plans. Therefore there is rarely any "goodwill" or
"blue-sky" value in the sale. Just inventory (if it is sellable) and real
estate.
The bigger picture is what will happen to amateur radio sales companies?
The trend is that the smaller, niche companies are either closing down or
selling to the two dominant buyers.
Is such consolidation good for the future of amateur radio?
What happens when MFJ or DXE go up for sale? Most likely the only
potential buyers will be publicly traded companies that have less interest
in the customer than the current stake-holders that are active amateur
radio operators themselves. And will there even be a buy when one factors
in the demographics?
When I took my 13 year old son to the DX Dinner at Dayton this year he was
probably the youngest person there. I was probably the second youngest
(49).
Unless amateur radio quickly and effectively figures out how to connect
itself into the STEM and Programming wave I fear that Nathan and I will be
the only guys at the DX Dinner someday.
At least he and I will have darn good antennas :)
73, Scott W3TX
On 7/7/16 11:24 AM, "Alan NV8A" <nv8a@charter.net> wrote:
>I have been surprised at the number of local businesses that are simply
>shut down when the owner decides to retire: they have a "going out of
>business sale," and that's it. I would have expected them to sell the
>business -- with its "good will" -- as a going concern.
>
>73
>
>Alan NV8A
>
>
>On 07/07/2016 07:21 AM, Chuck Gooden wrote:
>>
>> I would of expected that, the company would be up for sale to someone
>> that would be interested in keeping ham radio alive. So I am waiting
>> until I see an official notice.
>>
>> Chuck Gooden N9QBT
>>
>>
>> On 7/6/2016 4:57 PM, K7LXC--- via TowerTalk wrote:
>>> I just got an email from the sales manager of AES that they're
>>> closing the
>>> doors at the end of the month. Hard to believe since they used to be
>>>one
>>> of two 800 pound gorillas in the ham market. Apparently stuff happens.
>
>
>
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