Price Increase Alert for mid October

[Eric Swartz - WA6HHQ]

Early Alert for Elecraft list readers:

Our costs are going up as our vendors are increasing their prices to us and our
labor costs increase. Its been a continual battle to keep costs down as economic
activity has increased the last two years. We've been absorbing this, but now
we  have hit the point where we will be increasing prices slightly on a number
of our products by about the middle of October.

Of course, all orders received prior to the increase will be charged at the
lower, pre-increase, pricing when they ship.

Please don't all or email our sales / support people about which products will
be changing or how much the changes will be, as they do not have this
information yet. (We're still in the middle of this review.) We'll let you all
know as soon as we have everything finalized.

73,
Eric
/elecraft.com/

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[ae4pb]

Have you guys considered moving the company to a state with a lower cost of
living?

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of Eric
Swartz - WA6HHQ, Elecraft
Sent: Wednesday, September 23, 2015 8:55 PM
To: Elecraft Reflector Reflector
Subject: [Elecraft] Price Increase Alert for mid October

Early Alert for Elecraft list readers:

Our costs are going up as our vendors are increasing their prices to us and
our labor costs increase. Its been a continual battle to keep costs down as
economic activity has increased the last two years. We've been absorbing
this, but now we  have hit the point where we will be increasing prices
slightly on a number of our products by about the middle of October.

Of course, all orders received prior to the increase will be charged at the
lower, pre-increase, pricing when they ship.

Please don't all or email our sales / support people about which products
will be changing or how much the changes will be, as they do not have this
information yet. (We're still in the middle of this review.) We'll let you
all know as soon as we have everything finalized.

73,
Eric
/elecraft.com/

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[Elecraft mailing list]

Moving Elecraft to a lower-cost location is probably not feasible due to the disruption and cost of relocating the business and families.  Additionally, the challenge and cost of finding another location can alone be significant.  However, it is a business decision, so the costs vs benefits could be weighed.

73, George, K5KG

Sent from my iPhone

> On Sep 24, 2015, at 9:03 AM, <[hidden email]> <[hidden email]> wrote:
>
> Have you guys considered moving the company to a state with a lower cost of
> living?
>
> -----Original Message-----
> From: Elecraft [mailto:[hidden email]] On Behalf Of Eric
> Swartz - WA6HHQ, Elecraft
> Sent: Wednesday, September 23, 2015 8:55 PM
> To: Elecraft Reflector Reflector
> Subject: [Elecraft] Price Increase Alert for mid October
>
> Early Alert for Elecraft list readers:
>
> Our costs are going up as our vendors are increasing their prices to us and
> our labor costs increase. Its been a continual battle to keep costs down as
> economic activity has increased the last two years. We've been absorbing
> this, but now we  have hit the point where we will be increasing prices
> slightly on a number of our products by about the middle of October.
>
> Of course, all orders received prior to the increase will be charged at the
> lower, pre-increase, pricing when they ship.
>
> Please don't all or email our sales / support people about which products
> will be changing or how much the changes will be, as they do not have this
> information yet. (We're still in the middle of this review.) We'll let you
> all know as soon as we have everything finalized.
>
> 73,
> Eric
> /elecraft.com/
>
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[Doug Turnbull]

Dear OMs,
     Next thing we will be asking them to move off shore with engineering
possibly separated from production.    Leave the gem of Elecraft as it is.
It "ain't broke so let us not try to fix it."    I do however understand the
hurt to the purse.   Best to all and please take no offence.

                        73 Doug EI2CN

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of
[hidden email]
Sent: 24 September 2015 13:03
To: 'Eric Swartz - WA6HHQ, Elecraft'; 'Elecraft Reflector Reflector'
Subject: Re: [Elecraft] Price Increase Alert for mid October

Have you guys considered moving the company to a state with a lower cost of
living?

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of Eric
Swartz - WA6HHQ, Elecraft
Sent: Wednesday, September 23, 2015 8:55 PM
To: Elecraft Reflector Reflector
Subject: [Elecraft] Price Increase Alert for mid October

Early Alert for Elecraft list readers:

Our costs are going up as our vendors are increasing their prices to us and
our labor costs increase. Its been a continual battle to keep costs down as
economic activity has increased the last two years. We've been absorbing
this, but now we  have hit the point where we will be increasing prices
slightly on a number of our products by about the middle of October.

Of course, all orders received prior to the increase will be charged at the
lower, pre-increase, pricing when they ship.

Please don't all or email our sales / support people about which products
will be changing or how much the changes will be, as they do not have this
information yet. (We're still in the middle of this review.) We'll let you
all know as soon as we have everything finalized.

73,
Eric
/elecraft.com/

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[Jim Brown-10]

On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
> Have you guys considered moving the company to a state with a lower cost of living?

If you had a clue about the quality of life in the part of California
where Elecraft is located, you wouldn't be asking that question. I live
a few miles down the road, and it's as close to heaven as I can imagine.

73, Jim K9YC
Santa Cruz, CA
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[Eric Swartz - WA6HHQ]

Actually, wage, facility and development costs are pretty comparable at our location to other states for our business.  Our HQ and manufacturing facility (we build all our radios here in CA) is located in a lower cost agricultural area of the state . (Watsonville and the Salinas Valley - Steinbeck country..), so our cost of living for manufacturing employees here for is substantially lower than other more populated areas of the state.  And we are not capital intensive, which insulates us from some of the tax costs in CA associated with larger industries. Outside of the major population hubs, the cost of operating a business here drops significantly. CA also has an aggressive R&D / manufacturing tax credit, which for our size of company, reduces our taxes -significantly-.  (Bigger industries probably max this credit out and end up paying higher taxes.)

Our primary cost increases have come from our component suppliers, many of whom are out of state. The wage and facility cost increases here have tracked those in our type of industry outside the state.

Our engineering team is located both here at HQ and up and down the west coast from Washington state to Arizona, which keeps those costs in control too.

We also benefit from an amazing number of engineers, suppliers, consultants and sub-contractors close by here who are related to the high tech industry, which allows us to quickly and economically develop and manufacture products.  That proximity is priceless and unique.  It is one of the reasons we have been successful for the past 16 years.

73,
Eric
elecraft.com
_..._

> On Sep 24, 2015, at 6:03 AM, <[hidden email]> <[hidden email]> wrote:
>
> Have you guys considered moving the company to a state with a lower cost of living?
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[Hisashi T Fujinaka]

Will I be able to buy the audio boards for the K3 before then? :)

On Wed, 23 Sep 2015, Eric Swartz - WA6HHQ, Elecraft wrote:

> Early Alert for Elecraft list readers:
>
> Our costs are going up as our vendors are increasing their prices to us and
> our labor costs increase. Its been a continual battle to keep costs down as
> economic activity has increased the last two years. We've been absorbing
> this, but now we  have hit the point where we will be increasing prices
> slightly on a number of our products by about the middle of October.
>
> Of course, all orders received prior to the increase will be charged at the
> lower, pre-increase, pricing when they ship.
>
> Please don't all or email our sales / support people about which products
> will be changing or how much the changes will be, as they do not have this
> information yet. (We're still in the middle of this review.) We'll let you
> all know as soon as we have everything finalized.
>
> 73,
> Eric
> /elecraft.com/
>
> ______________________________________________________________
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> Home: http://mailman.qth.net/mailman/listinfo/elecraft
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> Please help support this email list: http://www.qsl.net/donate.html
> Message delivered to [hidden email]
>

--
Hisashi T Fujinaka - [hidden email]
BSEE + BSChem + BAEnglish + MSCS + $2.50 = coffee
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[ae4pb]

Kent,

  No I haven't because there aren't many places with a higher standard of
living. In fact I don't know of any other area that enjoys high employment
rates in high paying positions, lower cost of living/taxes, lower crime. Why
would I want to move somewhere with higher taxes, crime, and unemployment?

 

If I could find the same or better standard of living elsewhere that also
afforded high employment and low crime I'd definitely consider it.

 

CA is an excellent state to visit and I've worked for several companies
based there (including the US Navy). San Diego, LA. And the Long Beach are
all nice areas but expensive to live with higher crime rates. I don't know
much about Mo. as it's never mentioned in discussions about technology or
high paying jobs. In fact the only time I recall hearing about Mo. was
during the riots in Ferguson.

 

1.   Standard of living is not 1:1 with cost of living.

2.   Anything that increases the cost of doing business has the net effect
of increasing the cost of goods and services.

3.   I see no reason why you assume and imply that my standard of living is
low. You obviously know nothing about me or the area in which I live.

4.   If the job market were to dramatically change in a negative direction I
would re-locate. It's a matter of record that families from all over the
country ARE moving to my State/area due to higher standards of living with
lower costs of living.

 

 

Kent, at the end of the day the goal of a business is to make money. When
the cost of business rises then the company makes decisions to cut costs or
raise prices. In this case Elecraft has decided to raise prices. I want to
support them because they are US based and I appreciate the value they bring
up to a point.

 

For me personally I paid the premium for the radio because I believe in the
company.

Is it wrong for me to want the company to survive and ask if they considered
moving the company to lower their costs of doing business because they may
be struggling ? 2nd major jump in prices in less than a year?

 

If you were attempting to insult me then I apologize for taking your
question seriously.

If your attempt was to insult then my answer to you is: "Bless your heart".

 

 

 

 

 

 

From: KENT TRIMBLE [mailto:[hidden email]]
Sent: Thursday, September 24, 2015 11:06 AM
To: [hidden email]
Subject: Re: [Elecraft] Price Increase Alert for mid October

 

Have you considered moving your family to a state with a higher standard of
living?

Kent  K9ZTV




On 9/24/2015 8:03 AM, [hidden email] wrote:

Have you guys considered moving the company to a state with a lower cost of
living?

 
 
 

 

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[Leroy]

Clearly ones perception of heaven is subjective........

AB7CE   Leroy in MONTANA

-----Original Message-----
From: Jim Brown
Sent: Thursday, September 24, 2015 9:23 AM
To: [hidden email]
Subject: Re: [Elecraft] Price Increase Alert for mid October

On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
> Have you guys considered moving the company to a state with a lower cost
> of living?

If you had a clue about the quality of life in the part of California
where Elecraft is located, you wouldn't be asking that question. I live
a few miles down the road, and it's as close to heaven as I can imagine.

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[ae4pb]

Jim,
   I do have a clue on Ca. It's a great place to live but expensive as heck
compared to most places except maybe NYC. San Diego is one of my favorite
places to live.

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of Jim
Brown
Sent: Thursday, September 24, 2015 11:23 AM
To: [hidden email]
Subject: Re: [Elecraft] Price Increase Alert for mid October

On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
> Have you guys considered moving the company to a state with a lower cost
of living?

If you had a clue about the quality of life in the part of California where
Elecraft is located, you wouldn't be asking that question. I live a few
miles down the road, and it's as close to heaven as I can imagine.

73, Jim K9YC
Santa Cruz, CA
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[Jerry Moore]

Nice to hear Eric,
    My goal is to finish my K-Line without going off the books. I have the
cash, just not in the right pocket ;)
Jer

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of Eric
Swartz - WA6HHQ, Elecraft
Sent: Thursday, September 24, 2015 11:37 AM
To: [hidden email]
Cc: Elecraft Reflector Reflector
Subject: Re: [Elecraft] Price Increase Alert for mid October

Actually, wage, facility and development costs are pretty comparable at our
location to other states for our business.  Our HQ and manufacturing
facility (we build all our radios here in CA) is located in a lower cost
agricultural area of the state . (Watsonville and the Salinas Valley -
Steinbeck country..), so our cost of living for manufacturing employees here
for is substantially lower than other more populated areas of the state.
And we are not capital intensive, which insulates us from some of the tax
costs in CA associated with larger industries. Outside of the major
population hubs, the cost of operating a business here drops significantly.
CA also has an aggressive R&D / manufacturing tax credit, which for our size
of company, reduces our taxes -significantly-.  (Bigger industries probably
max this credit out and end up paying higher taxes.)

Our primary cost increases have come from our component suppliers, many of
whom are out of state. The wage and facility cost increases here have
tracked those in our type of industry outside the state.

Our engineering team is located both here at HQ and up and down the west
coast from Washington state to Arizona, which keeps those costs in control
too.

We also benefit from an amazing number of engineers, suppliers, consultants
and sub-contractors close by here who are related to the high tech industry,
which allows us to quickly and economically develop and manufacture
products.  That proximity is priceless and unique.  It is one of the reasons
we have been successful for the past 16 years.

73,
Eric
elecraft.com
_..._

> On Sep 24, 2015, at 6:03 AM, <[hidden email]>
<[hidden email]> wrote:
>
> Have you guys considered moving the company to a state with a lower cost
of living?
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[Bill-3]

Inflation is part of life. Been to a grocery store lately? Bought a new
car lately? Sent a kid to college lately?

Elecraft is doing fine for its customers - so stop whining!

Bill W2BLC K3-Line
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[ae4pb]

Unfortunately you are right. I just don't like it ;)
Jer

-----Original Message-----
From: Elecraft [mailto:[hidden email]] On Behalf Of Bill
Sent: Thursday, September 24, 2015 12:00 PM
To: [hidden email]
Subject: Re: [Elecraft] Price Increase Alert for mid October

Inflation is part of life. Been to a grocery store lately? Bought a new car
lately? Sent a kid to college lately?

Elecraft is doing fine for its customers - so stop whining!

Bill W2BLC K3-Line
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[Mike Morrow-3]

> If you had a clue about the quality of life...

All is great until the water is gone and the wildfires come! :-)

Mike / KK5F
(former resident of Vallejo)
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[Eric Swartz - WA6HHQ]

Folks - Let's not drift into personal back and forths here. Thread now closed.

Eric
Moderator
/elecraft.com/


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[Elecraft mailing list]

Is this really a Elecraft topic?
Mel, K6KBE



      From: Mike Morrow <[hidden email]>
 To: [hidden email]
 Sent: Thursday, September 24, 2015 9:13 AM
 Subject: Re: [Elecraft] Price Increase Alert for mid October
   

> If you had a clue about the quality of life...

All is great until the water is gone and the wildfires come! :-)

Mike / KK5F
(former resident of Vallejo)
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[Jim Low man]

Agree with Jim.  As many downsides as there are to living in California,
that area isn't one of them.
Looking forward to another visit to the factory next month, on the way
to Pacificon.

However, also living in the Golden State, I get the dubious privilege of
paying almost $200 in sales tax for my new K3S, even though I ordered it
at the Huntsville Hamfest.

73 de Jim - AD6CW

On 9/24/2015 8:23 AM, Jim Brown wrote:

> On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
>> Have you guys considered moving the company to a state with a lower
>> cost of living?
>
> If you had a clue about the quality of life in the part of California
> where Elecraft is located, you wouldn't be asking that question. I
> live a few miles down the road, and it's as close to heaven as I can
> imagine.
>
> 73, Jim K9YC
> Santa Cruz, CA

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[William Lagerberg]

Be glad in holland we pay 21 % tax over the price including the transport costs :-((

Sent from my iPhone

> On 24 sep. 2015, at 21:08, Jim Lowman <[hidden email]> wrote:
>
> Agree with Jim.  As many downsides as there are to living in California, that area isn't one of them.
> Looking forward to another visit to the factory next month, on the way to Pacificon.
>
> However, also living in the Golden State, I get the dubious privilege of paying almost $200 in sales tax for my new K3S, even though I ordered it at the Huntsville Hamfest.
>
> 73 de Jim - AD6CW
>
>> On 9/24/2015 8:23 AM, Jim Brown wrote:
>>> On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
>>> Have you guys considered moving the company to a state with a lower cost of living?
>>
>> If you had a clue about the quality of life in the part of California where Elecraft is located, you wouldn't be asking that question. I live a few miles down the road, and it's as close to heaven as I can imagine.
>>
>> 73, Jim K9YC
>> Santa Cruz, CA
>
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[David Gilbert]

I think you're grossly underestimating the disruptive cost of a move
like that.  The loss of product flow (or at the very least the cost of
the redundancy involved to avoid it, the massive time spent
orchestrating such a move, the undefined cost of the probable loss of
key personnel who probably would not join the move, the cost of
retraining new manufacturing personnel, the potential cost of defective
product caused by the move (it happens ... trust me) ... not to mention
the transportation cost of the move itself.  All to react to cost
increases from suppliers that have nothing to do with the location of
the firm itself.

Defend it all you want, but it's a poorly considered proposal.

Dave   AB7E


On 9/24/2015 8:56 AM, [hidden email] wrote:

> Jim,
>     I do have a clue on Ca. It's a great place to live but expensive as heck
> compared to most places except maybe NYC. San Diego is one of my favorite
> places to live.
>
> -----Original Message-----
> From: Elecraft [mailto:[hidden email]] On Behalf Of Jim
> Brown
> Sent: Thursday, September 24, 2015 11:23 AM
> To: [hidden email]
> Subject: Re: [Elecraft] Price Increase Alert for mid October
>
> On Thu,9/24/2015 6:03 AM, [hidden email] wrote:
>> Have you guys considered moving the company to a state with a lower cost
> of living?
>
> If you had a clue about the quality of life in the part of California where
> Elecraft is located, you wouldn't be asking that question. I live a few
> miles down the road, and it's as close to heaven as I can imagine.
>
> 73, Jim K9YC
> Santa Cruz, CA
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[Eric Swartz - WA6HHQ]

Folks - this thread was closed earlier today.
73,
Eric
Moderator
/elecraft.com/

On 9/24/2015 12:16 PM, David Gilbert wrote:

>
>
> I think you're grossly underestimating the disruptive cost of a move like
> that.  The loss of product flow (or at the very least the cost of the
> redundancy involved to avoid it, the massive time spent orchestrating such a
> move, the undefined cost of the probable loss of key personnel who probably
> would not join the move, the cost of retraining new manufacturing personnel,
> the potential cost of defective product caused by the move (it happens ...
> trust me) ... not to mention the transportation cost of the move itself.  All
> to react to cost increases from suppliers that have nothing to do with the
> location of the firm itself.

...
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