In response to Gary Harmons comments about Heath

WB4LNM WB4LNM at AOL.COM
Thu Mar 12 21:43:26 EST 1998


In a message dated 98-03-12 02:00:42 EST, Gary Harmon wrote (and I
paraphrase):

 "A fellow Heathkit nut composed the following words in a message to me....

 But what caught my ear when we were talking was that the VP used the phrase
 "like a Heathkit"!

 I think Heath did two things very well:

 1.  They de-mystified complicated things and through their technical
 documentation, made it possible for the average guy (or gal) to say, "Heck,
 I can do this"!   I think this led to their reputation being based more on
 the confidence they instilled in their customers (who'd come back for more)
 than on the quality or performance of the products themselves.  There was a
 lot of pride in saying "I made it myself!".

>>>> Indeed, this is correct for the kit buyers in the earlier years.
However, what Heathkit did NOT see (or react to)  is that the "...average guy
(or gal)..." changed during the  1970's.  The person who was intrigued and
bought the kits in the '50's, '60's and early '70's declined in numbers.
The person who would take the time to learn at least something about
electronics by building was replaced by a person who was much more
affluent and wanted, to use the phrase, "instant gratification".
There was and is little market for those who want to say "I made it myself",
at least in commercial quantities for consumer electronics.
Electronics became more complex; point to point wiring became replaced by
integrated circuits and microprocessors, and the products had more bells and
whistles - Heath could not keep up with that for roughly the same price.  So,
the revenue declined.

 "2.  .........  But of all -
 I think their ability to write clear and understandable "step by step"
 manuals was their greatest strength.  "

>>>>>> And, unfortunately, the greatest cost driver and downfall.  It cost as
much
to develop a Heath manual (at least for ham radio equipment) as it did to do
the technical
development engineering on the product.  The technical engineering cost (at
least) the same
if you were designing it for the production line or for the individual
builder.  In fact, it would
have cost less to do the technical design for a production line, because you
had more
manufacturing control over the product.  Heathkits HAD to be OVERengineered to
make up
for the (sorry!) sloppiness in assembly.  The additional cost of the manual
drove the cost of the
product out of sight for its functionality.  Hence, the decline of the
business, and its eventual
failure.  The saying around the plant was, "It costs a lot less to teach one
person how to
assemble 2000 radios than it does to teach 2000 people to assemble one radio."

>>>>>>>  Yes - I wish that Heathkit were still around in its "original" form
>>>>>>>  Yes - I wish that they had not put all their eggs in computers and
ignored the rest of
                          the business (my opinion), only to have that
business sold.
>>>>>>>  Yes - I wish that they had hired product managers who had some feel
for the market
>>>>>>>  Yes - I wish that they had not been in a "welfare wonderland" state
that sapped their
                         manufacturing competitiveness (Michiganders need not
reply)
>>>>>>>  Yes - I wish that it did not cost as much to produce a manual as it
did to develop the
                         technical "innards" of a kit

>>>>>>>    but...... that is not what happened.  As much as I like Heath as a
former employer
>>>>>>>    and as a long time kit-builder, they had their head in the sand,
and did not react when
>>>>>>>    the market changed.

>>>>>>>    Gary - I'm not attacking you personally at all - please don't take
it that way.

>>>>>>>      My two cents.     John...   WB4LNM     "One of the Hams from
Heath"

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