Are you tired of spending $500.00+ for a digital scanner?

[OmensEdge]

With two new digital scanner models on the horizon which apparently will be fetching just as much as the competition, I thought this thread would be appropriate.

Is there any good reason why either Radio Shack, Uniden, etc. haven't permanently lowered the prices on the digital scanners? I'm unaware of any other electronic device on the market that has remained the same cost as it did when it was initially released for so long. It's almost like the high prices of gasoline, there's no alternative. I mean, if you want to hear the digital conversation in your area, you must own one. I think this has a lot to do with why the prices haven't been lowered. There are so few listeners who have actually decided to hold off on buying one until they're cheaper. Everyone and their Mother have done whatever it takes to acquire one.

Certainly, any company in the business that has offered a digital compatible scanner in the past could be selling a lot more of them. As I mentioned, there are still a few people who can't afford them. In the scanner world, that "few" comes out to thousands more than likely. Just think, why not make a digital scanner with minimal features for the entry-level crowd around the $200.00 price tag? Just think how many they would sell. The money they would make would certainly pick up any slack lost in manafacturing costs and would definitely outsell the competition. In the process, this would force the competition to either make a more affordable model or permanently lower their prices to keep up.

I think most everyone here (including myself) is guilty of making the mistake of demanding more high-performance in a digital scanner. We've proven that we'll do anything it takes to buy one of these things and keep the companies in business. When do you draw the line, though? How much are you willing to spend before you refuse to buy the best there is? Who knows when it comes to the die-hard listeners. All I'm saying is that there should be a group of people, a company, and hopefully a good digital scanner in the near future committed to keeping this hobby affordable for everyone.

Thoughts?

 

[rdale]

Because it's pretty much known that the licensing fee per scanner runs about $200 or so. So your $200 digital scanner would basically be the company giving away the scanner for free and making no money on the licensing either.

Not sure how familiar you are with economics, but that's not good business sense ;>

 

[scosgt]

Because people are willing to pay it.

 

[scannerfreak]

Because people are willing to pay it.

Did you not read Rob's post above?

 

[scosgt]

I once worked for a Fortune 500 company that had a simple pricing concept - If you are selling too many units, the price is too low. So keep raising the price until sales drop off, then back down one notch and you have the correct selling price.

Amazingly, it worked.

 

[garys]

Just because P25 is an open standard, it doesn't mean it's free. DVSI has a lock on the technology and they charge accordingly. If you are selling a $3K Motorola radio, $200.00 is relatively less than if you are selling a consumer grade multiband scanning receiver. If you want a feature rich scanner WITH digital, it's going to cost money. The same scanner without digital is going to be less.

Gary

 

[scosgt]

Your point being what?

Did you not read Rob's post above?

Large companys tend to set prices based on "what the market will bear", NOT what it costs to produce a unit.

Making assumptions about what it costs to produce something, and then adding a presumption of profit to reach a selling price is not good science, because it just does not work that way.

30 years ago I worked in the automobile business. At that time we used to say that the factory makes around $1000 per car. Of course, at that time the dealer price on a Cadillac was around $6000

Today, who knows. They will give finance at 0% just to get their cars on the road. At the cost of cars now, maybe they make $5000 per car at the factory level. Of course, you can look at the balance sheet of a public company, but that does not really tell the profit story of any individual car. Some make money, some don't.

I recall when the Mustang was first introduced (maybe 1964?). They had commercials where you saw the car being driven with a tarp over it. It was revealed on a Sunday night during Bonanza, if memory serves. The original announced price was $1600.
But by the time the car got to the dealers, after all the hype (and it was huge), the price had mysteriously risen to over $2k

What the market will bear. If people will buy it at that price, the price is good.

 

[scosgt]

I am not saying they don't pay a license fee

Just because P25 is an open standard, it doesn't mean it's free. DVSI has a lock on the technology and they charge accordingly. If you are selling a $3K Motorola radio, $200.00 is relatively less than if you are selling a consumer grade multiband scanning receiver. If you want a feature rich scanner WITH digital, it's going to cost money. The same scanner without digital is going to be less.

Gary

But aren't these things all made in China where labor is, to say the least, CHEAP?

If the licencse costs $200 (I don't know it is that much or if in fact they did not simply clean room engineer it and pay no fees, I don't have info on that) it may only cost $225 to build the radio. After all, there is really not much in there when mass produced in a Third World country. So even if, in theory, they could sell it for $299 MSRP and make a profit, why should or would they when people will buy all they produce at the $500+ level?

After all, they are in business to make money, not to help scanner buffs.

 

[scannerfreak]

(I don't know it is that much or if in fact they did not simply clean room engineer it and pay no fees

Are you serious?

And exactly what do you think it costs to R&D these things? Of course they make money which is why they are the price they are :roll:

 

[bigbluemsp]

Because it's pretty much known that the licensing fee per scanner runs about $200 or so. So your $200 digital scanner would basically be the company giving away the scanner for free and making no money on the licensing either.

Not sure how familiar you are with economics, but that's not good business sense ;>

Rob also part of that is the P25 decoding software that is installed on the radios which a similar version is used in scanners.

 

[scosgt]

I don't get what you are saying at all. There is nothing here to defend or trash. Uniden and Rat Shack will sell the digitals for as much as they can get and still sell out. THAT price has no relationship to what it costs to manufacture (as long as there is a profit of course, else it become discontnued.).

That is simply business. If you think I am trashing them, you are incorrect. I am merely stating the obvious, that they are in business to make as much money as they can. Even if they could produce the 396 or PRO-96 for $10 per unit delivered, as long as we are willing to pay $500 per unit, that is what they will charge.

Sort of like the price of gasoline. The Oil Companys claim shortage because of:
Katrina
Iraq
Old refineries
New refineries
Too many cars
Not enough cars
Or whatever else they can think up.
Then at the end of the year they report BILLIONS in profits.
They get away with it because we MUST buy gas.

Uniden and Rat Shack do it because we are willing to pay that price.
Now it may well cost GRE $200 to produce a PRO-96. But then they sell it to Rat Shack, which also bears the liability of warranty repair. And they put it on sale for $399 and still make money
So I don't know about that $200 license fee. It seems to me that if that were true, maybe RS would lose money on those sales. I don't think they are in business to lose money.

 

[scannerfreak]

I don't get what you are saying at all.

Well that certainly explains it :lol: I know the exact amount most dealers pay for the Uniden's and I can gaurentee you it isn't what you think..

Uniden and Rat Shack do it because we are willing to pay that price.

I would go with they sell it that high because that's what they have to sell it at to make money..You think they are making $300 a piece on these? After just the DVSI licensing and R&D alone? I dunno about that..

 

[garys]

But aren't these things all made in China where labor is, to say the least, CHEAP?

Doesn't matter if the DVSI people pull them out of their hats. They hold the license and they set the price. It would probably cost more to try to reverse engineer it, and then defend that in court for a dozen years. By which time the technology is obsolete.

Your complaint here makes as much sense as your BS about oil prices. Try looking at the facts and not whining. Which is what you're doing. If you don't want to spend the money for a digital scanner, don't. If enough people agree with you one of two things will happen. Either the price will drop or Uniden and GRE will stop offering the products.

Which should make you happy because it will give you something else to complain about.

Gary

 

[Raven95150]

I'm unaware of any other electronic device on the market that has remained the same cost as it did when it was initially released for so long.

There is a reason for this, and it all comes down to supply and demand.

With most electronics, everyone has to have them as soon as they are released so there is a huge demand for a short period of time. Once everyone and their brother has one, the demand goes down big time, which also makes the price go down.

Digital scanners are a little diferent though. Only those that live in an area that is digital are going to buy a digital scanner, so the initial demand for the product is not as huge as it is with other electronics. As more and more areas convert to digital radios, the demand for digital scanners is going to keep going up, therefore the prices are not going to go down, and may actually go up. Once most areas (especially major metropolitan areas) have converted to digital radios, the demand for digital scanners will start to go down, and then the prices will start to come down.

Unless you want to wait a few years, you might as well plan on spending $500 or more if you want a digital scanner.

 

[Contact]

I have a hard time comparing buying the best scanner in the world with buying gasoline.

I do not HAVE to listen to digital trunked systems. It is a luxury.
I do HAVE to buy gasoline. It get's be to work which allows me to survive (and buy my luxuries).

Let's not get it twisted, the reason the scanners are so expensive is because of their complexity (and apparently the licensing fees).

I like the fact that not everyone can afford one, it kind of makes me feel more in the loop than most others, and frankly, I don't want them in possession of the low life criminals to use to advance their various habits.

 

[blueline_308]

As a rule of thumb, if its a mass produced item with a very large market (digital scanners are not a very large market BTW), MSRP is six times the manufacture cost. But keep in mind that R&D, Advertising, Marketing, etc. has to come out of that as well.

In the big picture of consumer electronics, our toys are small potatoes.

 

[kikito]

The thread subject can be easily applied to anything nowadays, so it basically sounds to me like just plain ol' whining...... :roll:

ARE YOU TIRED OF SPENDING $ <insert price of whatever> FOR A <insert hobby item of choice> ?

 

[frankh]

if licensing fees is anywhere near $200 winradios $99 software based decoder is a steal.

 

[loumaag]

...If the licencse costs $200 (I don't know it is that much or if in fact they did not simply clean room engineer it and pay no fees, I don't have info on that) it may only cost $225 to build the radio. ...

Well I think that $200 per unit licensing fee (for scanners) may be just a little low on the guess (I think it is closer to $300 per unit). But even going with that figure, are you trying to say the they can produce the radio for $25 including getting here to the US? In quantity I suspect the circuit board, controls and mounting hardware comes to about that figure per unit. Gee, free case, electronics, shipping, marketing... :roll:

BTW, if you think about the differences between digital and non-digital scanners with about the same capabilities, you will find there is just under a $300 difference in price.

 

[OmensEdge]

Hey guys, thanks for the information. Having been into scanning for a good number of years, I still consider my knowledge somewhat limited. There are a lot of variables involved in this field and I appreciate those who filled in the blanks so to speak.

Raven, I've had a digital scanner for a few years now. What got my thinking about this was a friend at work who has always been curious about scanners and has wanted to get one for some time. I informed him that there were some new models hitting the market soon and he asked me if they were going to be any cheaper than what mine cost. Unfortunately, I had to tell him what I read on here. His exact words after were, how can someone spend that much money on a police scanner? It just got me thinking about things. Sometime when you want something so bad, the cost comes secondary. If you sit back and think about it though, a half a grand for a scanner is a lot of money.

Contact, I wasn't comparing buying gasoline and buying a digital scanner. Maybe I worded it wrong. I was saying that there isn't a more affordable alternative when it comes to either. I suppose you could drive all over town to fine gas a few cents cheaper or browse the forums here or on eBay to try to save a few bucks on a scanner, etc. You get the idea.

As far as the complexity you mentioned is concerned, that's another thing. I've actually had trouble finding a use for all of the features theat are crammed on my digital scanner. I've actually had to think when it came to a certain feature, how can I use this? And then I would think, how much extra did I have to pay for something I'm not even sure I'm ever going to use? Why do we see all of this stuff on the higher end models? Why not take it down a few notches and have a digitial scanner with limited features? Do I really need the V-folders, close-call, fire tone-outs, etc. I realize that stuff is fine and dandy for people who can really use those extra bells and whistles and/or those who can drop a half a paycheck on a whim for any new model that hits the shelves, but why not build a light version? I was thinking earlier how cool it would be if you could buy a scanner with customizable features sort of like a Dell computer.

Last, kikito, thanks for the completely useless and irrelevant comments. Posts like yours are a good reminder why I rarely visit this board anymore.