[RocketsNW] Aerotech Announces Surcharge

[Brad Wright]

hmmm,  well AT reloads are already a higher price than the comparable CTI.....

-----Original Message-----
From: rockets-bounces at rocketsnw.com [mailto:rockets-bounces at rocketsnw.com] On Behalf Of kmcgoffin at worldaccessnet.com
Sent: Wednesday, June 24, 2009 3:31 PM
To: Robert Krausert
Cc: rockets at rocketsnw.com
Subject: Re: [RocketsNW] Aerotech Announces Surcharge

A lot of pyro chemicals are surplus stuff.  There's a continual
fluctuation in sources, prices, quality, and availability to repackagers
and small businesses.  Maybe Gary's having a shortage because someone else
got a "boatload."  Or maybe there is less surplus because AP manufacturers
are cutting back production now that the use of shuttle SRB's is going to
zero for a while.  Who knows.

As for raising the base price of motors, they're already a pretty pricey
luxury these days for many people.

In business, the first rule is to survive.  I think Gary just caught with
his pants down, that's all. ;-)
+McG+


> Find it very interesting that second source AP is now hard to find within
> a
> month of regulation changes. OK, I bet AT is feeling the economic downturn
> too. If they were more honest, I'd feel better. All they'd need to send us
> is, "Hey, we're hurting and can we raise prices until times get better? We
> are sorry, but for us to survive, we need the increase prices for a period
> of time." Tell us the truth. We'll back you up, maybe, but only if you're
> up
> front. Then I might be able to understand. I'm not sure I buy into AP
> second
> hand sources are dried up. If they truly have then why the "limited
> period"
> 20% charge to dealers? If having to single source AP is a reality, then
> they
> should just raise the prices on motors. Again, I believe they're feeling
> this economy and now with regs lifted, this extra 20% might keep them
> green
> until we clear from this down turn.
>
> Like having CP before CG... ;-)
>
> Cheers,
> Robert
> ----- Original Message -----
> From: "John Hornsby" <jhornsby3 at yahoo.com>
> To: <rockets at rocketsnw.com>
> Sent: Tuesday, June 23, 2009 8:40 PM
> Subject: Re: [RocketsNW] Aerotech Announces Surcharge
>
>
> Sounds like AT is looking for ways to increase the prices again. Nothing
> like pricing yourselves out of business. I think I've only purchused six
> reloads from an AT dealer in the past three years. Looks like it will be
> even less. Glad to see there are other options now.
>
> John H
>
>
>
>
> ________________________________
> From: Bill Munds <appusher at q.com>
> To: rockets at rocketsnw.com
> Sent: Tuesday, June 23, 2009 4:57:45 PM
> Subject: [RocketsNW] Aerotech Announces Surcharge
>
> This was in my INBOX when Dave and I got back from Brothers.
>
> Not really good news to say the least. Looks like Gary is swimming again.
>
> Bill
> -------------
> From:
> "Diane Carlson" <dcarlson at aerotech-rocketry.com>
> Subject:
> Price Surcharge Notice
> Date:
> Thu, June 18, 2009 4:04 pm
> To:
> "All Dealers & HP Dealers" <dcarlson at aerotech-rocketry.com>,"Canada
> Distributor" <dcarlson at aerotech-rocketry.com>,"Canada High Power"
> <dcarlson at aerotech-rocketry.com>,"U.S. Distributors"
> <dcarlson at aerotech-rocketry.com>,"International HP"
> <dcarlson at aerotech-rocketry.com>
> Dear AeroTech Representative, In the past, AeroTech has been able to
> obtain
> Ammonium Perchlorate (AP) through surplus markets at a reasonable price
> and
> with good quality. AP is an oxidizer used in all AeroTech composite solid
> propellant motors. Recently, however, the quality of this surplus AP has
> seen a serious decline and availability has become increasingly limited.
> As
> a result, AeroTech has been compelled to begin purchasing its AP from the
> sole source manufacturer in North America at greatly increased cost. This
> cost is more than double what AeroTech has paid over the past three years
> for AP and we can no longer afford to absorb this expense without some
> form
> of compensation. Therefore effective immediately AeroTech will impose a
> 10%
> surcharge on all dealer and distributor rocket motor and reload kit
> orders.
> We have chosen to impose a surcharge rather than a price increase because
> we
> believe at this time that the AP cost issue may be temporary.
>  AeroTech is actively searching for a lower-cost source of quality AP and
> we
> are making some progress toward that goal. However, this is a long-term
> solution that does not address the current dilemma. The 10% surcharge will
> continue until we have located an alternate source of acceptably priced
> quality AP, or such time as we find it necessary to raise overall
> suggested
> retail prices. Thank you for your understanding and support of AeroTech
> products. Sincerely, Gary Rosenfield President, AeroTech Consumer
> Aerospace
> Division of RCS Rocket Motor Components, Inc. 2113 W. 850 N. St. Cedar
> City,
> UT 84721 http://www.aerotech-rocketry.com/
> http://www.aerotech-rocketry.com
> http://im.live.com/Messenger/IM/Home/?source=EML_WLHM_GreaterGood
> http://gfx1.hotmail.com/mail/w3/ltr/i_charity.gif EMAILING FOR THE GREATER
> GOOD
> Join me
>
>
>
>
>
>
> --------------------------------------------------------------------------------
>
>
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