gw wrote:

hmm, kind of like buying a computer ...in a few mounths it is
obsolete...on the tektroix and hp stuff.......you would think that
they would be feeling the heat from asia like everyone else.....just
how much profit is there in a unit that sells new for $75,000.00? and
why may i ask after 10 to 15 years it still sells for heavy cash....


When you look at the price of a $75,000 unit, consider this: First,
the test equipment market is really rather small, nothing like the
consumer electronics market, and second, bleeding edge technology
test equipment requires some serious money to develop. Tektronix
and HP have historically been positioned right in the front of the
technology wave. So, a unit that sells for $75,000 may have cost
$20 million to develop to where it could be manufactured. It
probably only has a market life of 1000 units. Then the actual
manufacture of the product costs something. A good round figure
is the ratio of parts cost to sale price is 3x to 4x. Labor figures
in at about equal to parts cost.


-20,000,000 to develop
-25,000 x 1000 units = -25,000,000 parts cost
-25,000 x 1000 units = -25,000,000 labor cost
75,000 x 1000 units = +75,000,000 sales price of instrument
-------------------------------------------------------------
Bottom line +$5,000,000

Take that $5 million, and subtract some for advertising, and service,
and you haven't got much left.

Granted these numbers are just guesses, but I have been doing small
quantity manufacture for a lot of years, and these kinds of ratios
come up again and again.


As to why the Tektronix and HP stuff commands a high price in the
used market, the reason is simple, the gear is high quality, has
very high capabilities, and the price of a new replacement is also
high.

-Chuck