Metal Detector Companies and Osborne Computers

[lytle78]

If you about the right age and you have about the right sort of technical interest than you might just remember the first spectacular failure in the microcomputer age. A fellow named Osborne developed the first truly portable microcomputer. It was about the size of a singer portable sewing machine in a box that looked a heck of a lot like a sewing machine box sort of laid on it's side.

It sold pretty well and was the rage of the computer press. Then one day he publicly announced that he had a new improved machine on the way and that it would be on the market in a couple of months. Well during those couple of months people stopped buying his current Osborne 1 computer and - short of capital - he went broke before he could bring Osborne 2 to the market.

Metal detector companies are often small and probably operate on a very limited capital basis - they live or die by their cash flow. A new development which would obsolete current models cannot possibly be introduced too early

 

[Surfinsafari]

What you have written makes sense. I just let the bean-counters and eggheads worry about all that crapola. All I know is how excited I still get when I get a new site to dig. I like to wonder about how things made it into the ground in some of the weirdest places. Being the end-user is really the fun part.

 

[mudpuppy]

It certainly makes sense! Smaller companies have to be very strategic in the arena, take extra good care of their Brand image and customer base...try to out run and out market a larger and stronger competitor.
"Planet Killers" come in many different forms for small companies, the mgmnt team has to be aware of them all and have some "Plan B's" as they nibble away at the fringes of the available pie..Garrett really pulled off a good one with their products on those shows...no matter what we think of the shows, the imbedded product impact is powerful for growing a new base of customers.
Mud

 

[Larry (IL)]

I liked the part where you refer to White's as a smaller company like Tesoro.........

 

[lytle78]

Guess I needed to do some of that fact checking I am always on about others not doing!,

A quick online search shows the following for approximate annual revenue and # of employees:

Tesoro - $4 million - 25 employees
Whites - $20 million - 100-200 employees
Garrett - $27 million - 50-200 employees
First Texas - $73 million - 500 - 1000 employees
Minelab - $90 million - no data on total employees
Minelab USA - $1.8 million (included in the $90 M) - 11- 50 employees

 

[Rob (IL)]

 

[lytle78]

Another interesting factoid

 

[Tom_in_CA]

N/T

 

[WIHawker]

Yes but mr. osborne was only selling one product/model in a very tiny market. The metal detecting market is HUGE compared. Even the smallest metal detecter company has many different models to choose from. Not to metion the dozen or so brands with many models that are not even metioned on this board. Your comparisim is irelevent..

 

[lytle78]

Funny things - facts. I don't think you could characterize the early personal computer market as tiny - or my "comparisim" as completely irrelevant.

According to Wikipedia, Osborne computers - at its peak employed 3000 people and had monthly sales of 10,000 units with an annual revenue of $73 million. That would put them on a par with First Texas and behind only Minelab in terms of the current market leading detector companies.

Still, it is true that Osborne only had one product whereas First Texas has dozens. In fact, First Texas has a very interesting business model wherein they produce different lines of detectors which are distributed via completely separate marketing outlets. The "premium" brands sell through traditional METAL DETECTOR dealers whereas the "mass market" brands sell through mass merchandisers.

Whites uses regional distributors who supply dealers plus Kellyco who has national mail-order and online sales rights. The distributor/dealer set up allows Whites (and perhaps others) to "sell in" (sell to distributors and dealers) and leave some or all the risk of "sell through" (sale to customers) to the dealers and/or distributors.

All in all, I admit that my analogy is not perfect, but I think it helps illustrate the risk/reward balance a manufacturer has to strike in respect of pre-announcing new products.