On Wed, 28 Jul 2004 20:47:47 GMT, "Bruce A. Frank"
wrote:

Hmmm, if Garmin's prices are realistically so out of line then that will
supply the stimulus for a competitor to bring a similar lower priced
product to market. Certainly one has the right to discriminate when he
either dislikes the company, the product they sell, the promotion
methods they use, or the person who represents them. These days if you
are a discriminating shopper better keep it quiet or someone will accuse
you of censorship. ;^)

I look at it a bit differently. I bought the Garmin 296 because of
the terrain collision avoidance page and the flight instrument page.
I have flown IMC with it on my dash many times already. If every
instrument in the airplane fails in IMC you can fly the thing using
the 296. In the helicopters it's particularly simple. Going into
Burbank the other day I had a co pilot in an MD-500 watching all the
actual flight instruments as I flew the approach using the 296. It
worked flawlessly.

I was able to trade my 295 in at Spruce and get a $700 rebate off the
price of the 296. The 296 and it's terrain avoidance database, EFIS
page and the standard navigational page are life saving. There is
almost no question that any practicing IFR pilot needs this device.
It's a matter of life or death in the right circumstances. So, it
cost me a grand! I'd write a check for my entire net worth in a
helicopter or an airplane in hard IFR conditions when the vacuum pump
and alternator crapped out and I was spiraling into the farm. This is
what the 296 is...a second chance. And with the lithium battery, it
stays up for 12 hours or more now too. My 295 crapped out in 1.5
hours on the best AA batteries I could buy. So, I needed the aircraft
electrics to run the damn thing through a cigarette lighter cord
(depends on the same electrical system as all the rest of the crap in
the panel).

Fixing prices? Well, I think Garmin did a great job on it and keeping
the price up does nothing but encourage other manufacturers to compete
and build an equivalent or better mouse trap. The profit motive is
amazing to R & D. What "keeping the price high" does is force the
rest of the industry to compete, make better electronics and recover
their investment when they do. I don't mind seeing Garmin recover
their investment. But, there's something else going on here. They
are forcing the retailers to sell it at a certain guaranteed margin.
What this does is make retailers want to carry GARMIN products because
they know they won't be undercut or that the profit margin on a
Magellan is necessarily better. It makes a retailer want to advertise
the product because they know that they can re coupe if they do.

I veiw it as a method of keeping everybody honest and not undercutting
the profit in the product. The product is not undermined to the point
that no one wants to carry it because they can buy it so much cheaper
on ebay. It's like pilot's salaries. Pilots have undercut each other
to the point that some new commuter pilots work for something like
$500 a month. Why?? Because if you don't take that job, somebody
else will. It degrades the whole industry to the point where people
are working for slavery wages. It undermines and undercuts the entire
profession. I feel the same way about a product like the 296.

I don't blame Garmin. Keep the price reasonable (remember that simple
panel mounted GPS's cost $2500) The 296 at $1600 bucks is a steal.

Keep it reasonable but guarantee each retailer that they won't be
undercut by someone who is willing to sell out for less. That keeps
the product price strong, it keeps the profit in it for all retailers
who carry it, and it makes the competition work harder to beter their
equipment to make the same profits.

BWB