A friend of mine asked me the other day how the proposed tariffs will affect the cost of ham gear. Not being an economics guy, I really have no clue, except to say that prices will probably go up.
Well, today I came across an email from Connect Systems, who import radios for digital communications.
Here’s their analysis:
Tariffs
The mark-up for amateur products in not very high. The following is how we figure the cost of the product:
CS750 cost to manufacture…….$115.00
Shipping………………………………..$15.50
Credit Card Cost ………………………$9.56
Tariffs at 25% ……………………….$28.75Total out of pocket cost………….$168.81
Selling Price …………………………$239.00
Profit = 239 – 168 = $71
Now lets assume the tariffs are at 100%. The analysis is now as follows:
CS750 cost to manufacture…….$115.00
Shipping………………………………..$15.50
Credit Card Cost ………………………$9.56
Tariffs at 100% ……………………$115.00Total out of pocket cost………….$255.06
Selling Price ………………………….$239.00
Profit = 239 – 255.06 = $(16.06)
If I don’t change the selling price, I would loose $16.06 for each radio sold.
The above analysis does not cover the cost of things such as cost of running the on-line store, salary, and other business expenses.
While I do not expect the tariffs to be set at 100%, I would be very surprised if the tariffs do not increase from the current rate.
We anticipated the tariffs and we bought a large stock of our standard products. We will keep the price the same until we run out of stock. While I cannot predict the selling price in the future because I do not know what the tariff rates are going to be, you can expect some type of increase.
When you buy direct from a Chinese company, you will not see a price increase. However, the tariffs are going to be paid by you before it is delivered.
Of course, who knows what the final tariffs, if any, will be, but this is something to keep in mind. It was reported this morning that car sales have jumped in anticipation of the tariffs raising automobile prices. Crazy times.
The tarrifs won’t affect me. The cost of everything else is so high, I can’t afford non essentials. Then, not knowing how things will play out with the FCC’s delete program doesn’t instill much confidence in ham radio right now.
I’ll just stick with what I have for the foreseeable future!
I agree with N8TGQ.’s observations. I don’t anticipate any amateur radio purchases. What I have continues to function correctly and meets my needs despite my gear not being brand, spanking new. And,. was already used when purchased. My age also comes into play.
How is the ARRL responding to Delete Delete Delete?
Does Trump really want 750000+ pissed off hams?
I could be wrong, But since Amateur Radio is pretty much self policing now, where’s any savings?
Hi Rick,
That’s a good question. I understand the ARRL is the primary advocate for the amateur radio community in Washington (and state level, etc.). Hopefully they are actively lobbying for the community’s interests. I’d like to know if they have suggested messaging to send to our senators and representatives in Congress?
There are some thoughtful videos on Youtube discussing “Re: DELETE, DELETE, DELETE” in relation to amateur radio. From what I’ve gathered, there may be opporunities for regulatory relief and savings in commercial broadcasting and other activities under the FCC’s umbrella. But not much streamlining and simplifying for the amateur radio service. There could be pressure to sell of portions of the amateur radio spectrum to commercial interests, which may be the biggest risk. Not so much cost savings as revenue generation. We will see how this turns out.
Politics has no place in ham radio…
Hi William,
Isn’t amateur radio governed by politics? Especially during this time when the effort to simplify and cut costs is underway. There could be an impact on the amateur radio service that affects us all. As a new ham I am very interested in the outcome. Did I just invest time, effort and money to get licensed for this exciting hobby, only to have it all change? What can I do to support the community and our interests by contacting my elected representatives in Washington and at the state level?
I don’t think this is an issue of team red vs. team blue vs. team other, and I understand it’s generally frowned upon to discuss politics, religion and other such topics in ham radio (I will gladly abide by those rules). In this case, because of the potential impact on the amateur radio hobby itself, would it not be appropriate to discuss the political aspects in these forums?