Scanner Supply and Demand
Sure, I can download a pretty PDF, don't have to look at as many ads, and get to import into UniTrunker, but that's not why I pay or even worth the premium subscriber cost. I contribute (or, "buy" if you want) to the service because I want to advance the core offering, which is providing substantial transparency in our country. RR is amazing overall; however, it appears that premium subscribers are not always treated with the priority that they ought to be. The result might be lack of retention; however, perhaps good relations with bigger entities is better for the pocketbook. Either way, it's worth helping to keep afloat. I doubt anyone is making obscene profits from this venture.
At any rate, I want to contribute and clear up another aspect of the simulcast issue, and that relates to the economics of selling scanners.
On this forum, it is routinely (and incorrectly) asserted that professional radios are more expensive because they have "better stuff" (hardware, firmware, codecs, etc.). The cost of that improved equipment is minor and not the driver of the cost of professional radios utilized by government agencies (and pseudo-"private" entities like utility companies). Understanding the economics helps one understand the products available on the market today.
In the graphs I present below, the concepts are more important than the numbers. These graphs represent a finite yet undefined period of time.
Consider consumer scanner demand: The demand curve is incredibly elastic. If scanners were dirt cheap, tens of millions of people would buy them. However, at higher prices, the demand drops sharply since most people don't require a scanner for work or to live (and have other things, like food, they must buy within their budget). Sure, some people will buy a consumer scanner for an "outrageous" price, but it would be out of reach for the masses.
Consider consumer scanner supply: Pretty much everything physical about consumers is cheap. They are manufactured overseas and, after basic material and labor costs are covered, will be churned out pretty rapidly.
So, how does a scanner manufacturer make more money? They can't raise their price too much, because, based on the elasticity of the demand curve, the quantity sold would plummet. So what's left to do? Either make the scanners cheaper to produce or shift the demand curve to the right by convincing people to buy more scanners.
They make the scanners cheaper to produce by: not spending money on R&D (i.e. repackaging the same product 10 different times, not correcting simulcast problems), using inexpensive components, and limiting customer support and warranty service.
The consumer scanner marketers shift the demand curve to the right by making people think they are getting something excellent, that the new product is so great they just have to have it. The product doesn't really have to be any better, they just have to make people think it is. Additionally, there is an incentive for producers to hold out on improvements. If it takes just one or two improvements to sell another round of scanners, why lay all your cards on the table prematurely? Unfortunately, even most scanner consumers are not as knowledgeable as those in or reading this thread.
What we are left with is little incentive to make real improvements to the consumer scanners. The producers can't raise the price to accommodate R&D or new components or else an equilibrium point would not be reached (think raising the Y axis of the graph to $1,000); there would not be sufficient demand at such price point to produce the better scanner.
Now let's consider government and utility radio supply and demand.
Government radio demand is fairly inelastic, meaning the quantity demanded is fairly stable despite the price. Each government employee, vehicle, and dispatch center needs a radio. It's critical to the functioning of the agency. Additionally, it is not a competitive nor rational market. Decisions are based on politics rather than the free market. The decision makers are potentially naive, and, at any rate, they are spending someone else's money on someone else. And this isn't even getting into corruption or kickbacks.
Government radio supply is also inelastic due to several factors: government procurement processes, limited competition, collusion, and proprietary technology. Since the acceptable price of radios is known (open records) and the major players already have substantial infrastructure, there is little incentive to try to enter the market (provide competition and bring prices down) and the players in the market know how to price their bids to artificially increase prices.
Since demand is inelastic, there is no incentive to decrease prices since equilibrium quantity won't increase much (profit = profit per item sold * number of items sold).
It is not necessarily the cost to produce the product (i.e. cost of "better stuff") that determines the price, but the inelastic demand and the political rather than competitive market.
So how does a radio manufacturer make more money? They increase demand by convincing people to build out new radio systems or add features to justify an increase in price. In the graph above, it is apparent that the biggest gains for radio marketers is to convince governments that they must upgrade their radio system (whether or not they really need to or if it would even benefit their mission); this is the shift to the right of the demand curve demonstrated above. I won't wade into discussing the ethics of some of the techniques used to sell people new systems. The next way to make more money is to have special features that justify an increase in unit price (and provide cover for the public servants buying the more expensive equipment). For instance, the radio marketers might push an encryption feature to make more money off of the relatively fixed quantity of radios they sell.
The most important factors for a radio producer are to play politics (keep customers happy, give decision makers gifts, etc.), push new features, and push new systems. There is no pressure to reduce the cost of equipment and radio systems since political rather than market considerations determine price.
So, in summary, consumer scanner producers have no incentive to make better scanners because 1) most people won't pay higher prices for them and 2) they can trick us into thinking "new" scanners are better without spending much money. On the other hand, /\/\ and "competitors" have no incentive to lower prices since it won't substantially increase the number of products sold; prices are set politically, not necessarily based on the cost of the components, overhead, research, labor, etc.