Profits on scanners

[stantorres]

I wonder how profitable scanners are, and if new products will continue to be developed? My guess is: on an SDS, $100 cost, $200 mfg profit, $60 wholesaler profit, $300 in retail markup = $660 retail price. 50,000 in volume, Uniden clears $10M over the lifespan of the product? Anyone know the typical markups on scanner radio type products?

 

[jtwalker]

I am just guessing but I can’t imagine retailer markup is the biggest slice of the pie. Where is the R&D costs amortized over the life of the product?

 

[prcguy]

When I worked for the largest CB mfr in the world in the 1970s the business model/profit margin for manufacturing radios was 75% or spend $1 and bring in $4. That $$ spent included parts, manufacturing equipment, rent, salaries, electricity and other overhead plus advertising. That end price would be wholesale and retailers have their own markup which can be all over the map.

Manufacturing radios takes some electronics and business smarts, which is added value and not something that just anyone could pull off. If you were to manufacture something very simple that takes little skill I would think the profit margin would be much less.

I wonder how profitable scanners are, and if new products will continue to be developed? My guess is: on an SDS, $100 cost, $200 mfg profit, $60 wholesaler profit, $300 in retail markup = $660 retail price. 50,000 in volume, Uniden clears $10M over the lifespan of the product? Anyone know the typical markups on scanner radio type products?

 

[garys]

What is the cost of the AMBE hardware and software licenses for digital scanners?

 

[ArtU]

I can buy an AMBE chip for $25 , I can buy an AMBE 3000 USB dongle that makes everything work on a PC for $90, FYI I sold mine as I moved away from needing those as I got an OpenSpot 3 with 2 AMBE 3 chips

 

[RFI-EMI-GUY]

When I worked for the largest CB mfr in the world in the 1970s the business model/profit margin for manufacturing radios was 75% or spend $1 and bring in $4. That $$ spent included parts, manufacturing equipment, rent, salaries, electricity and other overhead plus advertising. That end price would be wholesale and retailers have their own markup which can be all over the map.

Manufacturing radios takes some electronics and business smarts, which is added value and not something that just anyone could pull off. If you were to manufacture something very simple that takes little skill I would think the profit margin would be much less.

At the time I started work at Motorola in 1976, I was told profits were 7:1 in their model . Not unexpected giving the regional sales force and field engineering etc.

 

[ArtU]

I loved CB Radios in the 70's as a teen

 

[MStep]

All depends on the quantity the dealer is committing to. You can bet that Bearcat Warehouse is getting a better price than Sal's Scanner Shack. It's a pretty competitive market, so for small dealers, there is not a big profit margin.

 

[MStep]

I wonder how profitable scanners are, and if new products will continue to be developed? My guess is: on an SDS, $100 cost, $200 mfg profit, $60 wholesaler profit, $300 in retail markup = $660 retail price. 50,000 in volume, Uniden clears $10M over the lifespan of the product? Anyone know the typical markups on scanner radio type products?

Having been in the scanner business for many years (admittedly several decades ago), I can't conceive of a $300 dollar markup on a $649 SDS100. Of course, Amazon has changed the world, but it is because of their very competitive marketing advantage. But the field is way to competitive to allow for that kind of markup.

What is more interesting is what the supposed cost to Uniden is to design, manufacture and distribute the SDS and other Uniden Scanners. Way too many factors to wrap my miniscule brain around at this hour, but I don't think any retailer is making $300 profit per unit.

 

[iMONITOR]

Manufacturing scanners in Vietnam is very inexpensive. From what I've read on the internet manufacturing employees might makes around $150.00 per month.

 

[Omega-TI]

Of course, Amazon has changed the world, but it is because of their very competitive marketing advantage. But the field is way to competitive to allow for that kind of markup.

It's interesting, but currently Amazon's price is $30.00 higher than places like ScannerMaster.

Manufacturing scanners in Vietnam is very inexpensive. From what I've read on the internet manufacturing employees might makes around $150.00 per month.

Better than all our money going to China. There is profit figured into the currency exchange rate(s) as well, and people gotta work to eat in developing countries as well. Honestly though, Capitalism, or "motivated self-interest", is what drives people to design, develop and manufacture all the really good toys for us scanner heads.

 

[gary123]

Just remember the cheaper manufacturing costs the cheaper the quality.

 

[Omega-TI]

Manufacturing scanners in Vietnam is very inexpensive. From what I've read on the internet manufacturing employees might makes around $150.00 per month.

From what I read on << THIS WEBSITE >> A basic production laborer makes 4,370,000 VND (usually non skilled labor), while a unspecified factory worker makes 5,330,000 VND and a Manufacturing Production Technician, (probably the scanner workers) make 6,250,000 VND on average. The page also suggests 75% of those types of workers are making at least 7,040,000 VND, which is roughly $310.00.

Now, the << Cost of living in Vietnam >> is different from here, but on the whole I'd say it's a little better for the worker there than a part time minimum wage worker here, especially when it comes to rent. A two worker household could easily live there on a combined $620.00 per month.

So with that in mind, I will not feel guilty if my new scanner turns out to be made in Vietnam.

 

[donc13]

As long as there

I wonder how profitable scanners are, and if new products will continue to be developed? My guess is: on an SDS, $100 cost, $200 mfg profit, $60 wholesaler profit, $300 in retail markup = $660 retail price. 50,000 in volume, Uniden clears $10M over the lifespan of the product? Anyone know the typical markups on scanner radio type products?

As long as there is enough demand, there will be new scanners. Cost of products to manufacture includes overhead for the corporation and any parent companies. Overhead is everything it costs just for the company to exist.

In Uniden's case, there are no wholesalers that I am aware of... All retailers buy direct from Uniden. I doubt the retailer's profit is $300/scanner.. But I could easily be wrong.

 

[fxdscon]

In Uniden's case, there are no wholesalers that I am aware of... All retailers buy direct from Uniden.

-
UPMan had a comment on that a while ago...

We do not have an "authorized dealer" program. We sell to distributors. Distributors sell to retailers.

This is one of Uniden's major distributors:

https://www.lescodistributing.com/

 

[donc13]

-
UPMan had a comment on that a while ago...


This is one of Uniden's major distributors:

https://www.lescodistributing.com/

I just learned something then. Always a good thing.

 

[KevinC]

-
UPMan had a comment on that a while ago...


This is one of Uniden's major distributors:

https://www.lescodistributing.com/

Funny story. I bought a SDS100 and inside my box was a receipt from Lecso, showing how much that seller paid for the units (I think he had bought 50). I promised myself I wouldn't share how much, but I was a little surprised (not saying it was higher or lower than I thought).

 

[donc13]

Actually.... While I was wrong on Uniden using a distributor, from MY prospective, I only really care what I have to pay for an item. How the pie (my money) is divided makes no difference as long as those in the chain get enough to keep making/growing/selling the item