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Re: [TowerTalk] US Tower price increase

To: jimlux <jimlux@earthlink.net>
Subject: Re: [TowerTalk] US Tower price increase
From: EZ Rhino <EZRhino@fastmovers.biz>
Date: Mon, 2 Jan 2017 15:56:07 -0700
List-post: <towertalk@contesting.com">mailto:towertalk@contesting.com>
Good points Jim.

I may also add that a lot of us (including myself, at times) are spoiled.  We 
clickety click click on line, and two days later a product is in our mailbox.  
We no longer realize how things are manufactured or the time, energy and cost 
associated with producing a product.

Metal fabrication isn't an inexpensive or easy business to be in.  The 
machinery needed to fabricate a tower is expensive, er, I mean, EXPENSIVE! and 
HUGE!  CNC plasma tables, press brakes, welding equipment, CNC benders, jigs, 
fixturing tables, tooling, tooling, and more tooling, and qualified experienced 
operators of this machinery, and don't forget a huge building that can store 
all this stuff.  Metal fab is a slow process, lots of labor, and lots of trial 
and error to figure out how to make something that functions correctly.  Then 
you need to figure out the most economical way to mass produce the product with 
the least labor as possible.  It's not easy.

I am not excusing the price increases at UST, as they do sound out of line.  
But I do think getting a new 50-foot crank up for $3k is a bargain!  

Also watch the used market, where you can get a real deal on some used stuff.  
I watched the classifieds like a hawk for almost a year, finally found a TriEx 
LM470 that was still horizontal, still partially crated, never installed, and 
got it for a song.

Chris
KF7P






On Jan 2, 2017, at 15:43 , jimlux wrote:

On 1/2/17 11:38 AM, Jim Brown wrote:
> Great response, Jim. BUT -- the increase noted by the original poster
> was that the increase was overnight!
> 
> Several possible reasons for this. One is that business operations for
> the ham market are often supported by higher volume and higher margin
> operations for other markets. When those other markets fall apart, they
> no longer support the ham market, or contribute to economies of scale
> that allow lower prices.
> 
> Another is corporate mergers, which can change business priorities,
> change where products are manufactured.
> 
> But assuming corporate greed as the reason for all such price increases
> is unreasonable. It certainly can be, but there are many other reasons.
> 

yes, I agree.. usually it's a "it's not economic to sell at that price any 
more, compared to other products".  I was more commenting on the "back in 85" 
comment.

I know someone who is buying 50 tower trailers with 100+ ft towers on them. 
That's a much better sale proposition than onsie, twosie sales to individuals.  
Whether through distribution or not, the support costs tend to be "per 
customer" not "per tower".

As for the overnight x3... That's a "we don't really want to be in this 
business" or "our cost structure radically changed" kind of increase.

I've also seen that when you have a business founder of a family operated 
business retires/sells out: the founder didn't have any debt service costs, was 
willing to live out whatever margin there was.  The new owner had to get a loan 
to buy the business and actually has to pay employees a wage and benefits - all 
of a sudden instead of "my wife does the assembly and we're on the same 
insurance" it's "I've got to pay a reasonable wage and provide vacation, 
insurance, etc.", I've got to pay rent and storage costs, I've got to pay for 
the "cost of money".

A similar phenomenon occurs when a partner retires/dies/leaves and the 
remaining partners have to buy them out.

Or, it's just - we don't want to leave existing customers totally in the lurch, 
but we can't subsidize them either - we'll be responsible and at least make 
parts available, but at cost that is basically "fabricate from scratch 
individually"










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