Just saw this
https://www.schlockwood.com/sw200page
A good example of tariffs affecting the future manufacturing and selling price of part 15 gear.
I posted about this, now it's happening.
Yup.
A good example of a manufacturer recognizing that they won't be able to sell (as) many units at the price + tariff point, and rethinking their business plans.
Yeah. It's just crazy looney.
A little late, but just got to thinking..
For reference here's what it says:
Our 2024 production run has completely sold-out, and the current import tariff situation has interrupted follow-up production that could sell at our customary price point. We are nonetheless committed to serving our customer base and are actively seeking alternative component sources and manufacturing economies that will allow the SW200 (or an equivalent successor product) to be available later this year. Please stand by and watch our Website for updates.
He's in California so presumably he's referring to the tarriffs on the parts to build them. Rugster did an excellent review of it by the way for those who havent seen it: https://aa7ee.wordpress.com/2018/03/13/the-sw200-a-budget-am-broadcast-processor-for-lpam-and-hams-too/
But anyway what I'm curious about is just how much $ amount differences are we talking about here for the various components and plastic housing needed to assemble one of these??
I mean obviously the cost of the sum of its parts is minuscule compared to the cost of purchasing an assembled unit (nearly $400), and even after giving ample room for initial expense of certification and so forth, there's still a lot of room for a handsome profit - which by all means is well deserved - there seems to be no question to the exceptional value of the unit It's quite clear just by looking at the sales on ebay and the fact that all current stock is sold out, that it's already long ago has made a significant profit.
So now with these tarrifs.. What's that going to amount to? Maybe an increase if $20 in parts per unit? (if that much) - They could raise the Schlockwood price $20 to compensate - or not, he could leave it the same price - he could even lower it less than it's ever been and still come out ahead.
And... do the Schlockwood parts have to come from China? - I realize that's always been the cheapest place to get them, but cant the components be purchased in the USA?
@richpowers It is more than $400 by the way but if he has them made in China(the boards)
It would, with the tariffs on China make a big difference depending on what the tariffs are.
Price could double! I don't think he assembles then from scratch himself. There are "production runs"
Yes the components can all be purchased in the USA from Mouser, Digikey etc but like the Procaster he designs a prototype and then sends it to China and may have a batch of say 100 in a production run. You are thinking he assembles them all himself by hand.
Yes he maybe could have them made in the USA but how much do you think that would increase the price? To have them made in China he just sends the info via email to the company he deals with and they can be made in a day and the batch can be sent back DHL and shipping is 3 days.
These things don't sell as many as you may think. Gerry at Procaster told me that since the Procaster AM was launched till now, July 2025 he as sold 100 give or take...his words to me so the profits are not that big and a lot is just recouping expenses.
@richpowers It is more than $400 by the way but if he has them made in China(the boards)
It would, with the tariffs on China make a big difference depending on what the tariffs are.
Price could double! I don't think he assembles then from scratch himself. There are "production runs"
Were they always over $400?? It seems originally they were like $390 or so but I really dont recall. I see they're pushing $500 now. I know the Procasters used to be like $650, they appear to have gone up long before tarriffs ever came into the picture, and if he's only sold 100 that's only around $70,000 in sales. Just making a wild guess that something considerably less than $30,000 went to expenses,:so not bad a return so far... But I'm just speculating. The point is I just dont see tariffs causing any real undue harm on such small niche manufacturers of such equipment like the Schlockwoods, Procasters, Rangemasters and whoever else who's companies are basically a one man show.
Tariffs may create an irritating increase in some manufacturing cost, but I tend to doubt it could be so drastic that it's going to put anyone out of business -- not that any of the aforementioned has sold more than a few hundred of their products since they began anyway. I'd wager to say it's been no more than supplimental income to any of them.
Yes he maybe could have them made in the USA but how much do you think that would increase the price?
(I guess I should have said made in Canada )
That's kind of what I was asking to begin with, how much difference in $ we talking about? I suppose now they start comparing - which is cheaper: China w/tariff charges or USA without them. I dont know, but I dont think it will make much difference in the end.
These things don't sell as many as you may think.
At no time in the last 20 years or so have I thought anyone was selling a substantial quanity of the transmitters, but it was definitely more popular 10-15 years ago than it is now.
It seems that with all this push for saving AM going on is an excellent primer for a resurgence.. doesn't appear to be working out that way though.
@richpowers Yes he did raise the price by $50 for the Procaster as his costs have gone up but depending on the tariffs that the USA puts on Canada will mean they get you at customs and you pay when you get your package...not from Procaster.
Well, as for the Schlockwood the tariffs are affecting it enough that he is looking for other manufacturing sites as if the price is too high it will be out of reach for the average hobbyist and yes it could mean a business, especially a home, one man show, as the Schlockwood is, saying forget it. If he has them made in China didn't Trump put a 150% tariff on everything coming from China? Since China doesn't have any tariffs on Canada and Canada has no tariffs on China, the Procaster isn't hurt by tariffs but if you are in the USA it comes from Canada and the extra tax is added on to the package from customs when you pick it up/or get it delivered. And 25% added to the price of the Procaster makes it considerably more expensive. I don't know about Rangemaster or Talkinghouse as it depends where they are made. I don't think it's in the USA but I could be wrong.