Huge Minelab Price Increase - And Gold Monster To Come With One Coil?

[Lynk]

Codan's investor material shows a deemphasis of the metal detector segment. It makes sense for them to focus on larger markets with more growth potential.  We are in a small, niche market which is really difficult to pitch to the investment community.  

It wouldn't surprise me if Codan sells this segment.  Price dependent, it could be the rational thing to do to optimize shareholder returns and that is the primary fiduciary responsibility of the board. 

[phrunt]

I think they'll sell if they've reached peak detector, if they think their development cycle has ended and now,they are facing the Fisher paint jobs territory of just doing minor changes and trying to sell new models, like a GPZ 8000 just being a GPZ 7000 in a lighter configuration due to technology changes since, giving it the new Bluetooth LE and better performance by dropping a Concentric coil on it or a smaller DOD coil something along those lines, even more coil sizing options would make stock GPZ owners think their 8000 easily outperforms their 7000.   X-coils have proven it can be done, Minelab could adapt their coil designs to suit what they think an 8000 should be and improve on them if they can. 

Once the 8000 comes out if it ever does watch the purchasing of aftermarket GPZ coils skyrocket, the same thing happened when the 6000 came out, people wanting their 7000 to get 6000 small gold performance without having to buy a 6000 too invested in aftermarket coils.

The other manufacturers playing catch up can still keep going bringing out new models catching up to Minelabs existing ones and doing so at cheaper prices and so forth and have a successful business especially Nokta with far lower production costs and an extremely low dollar value, 1 Turkish Lira = 0.035 US Dollars.  Bringing USD home they turn it into a lot of Lira's! 

[Lynk]

I think all that is true and even if they aren't quite at the peak of the technological curve focusing on the communications market may just resonate with investors more. That makes access to capital easier, meaning growth is easier. What CEO doesn't want a bigger empire! 

I kind of think we'd be happy if they sold the segment as it would bring fresh eyes and hopefully invigorate innovation.

Anyway, all fun speculation. All we know is it looks like an aggressive Australian price increase. Everything else is TBD. 

[geof_junk]

All the top class gold detectors that I have brought in the last 45 years have cost between 3 and 4 ounces of gold. The problem is there is a lot less easy gold being found.

[schoolofhardNox]

If they are getting ready to sell, and they sell to another investment company, then not much will change. The only way to recover from the spiral is to go back to being a private company. It's being done more and more these days. If technology is at another slowdown or hitting its limits, then we won't be getting much of an improvement in consecutive models. Like others have said, just a new paint job and a tweak here or there. Minelab limiting you to their coils, or having us wait until they decide to license coil production to another company, is another reason to be dissatisfied with them. They can do these things (along with price hikes) for a while and spin the investor reports, but eventually it slows down enough to be a problem for them. What they should be doing is making sure customers have durable and stable operating machines so that they can come on forums, You Tube, etc and show how wonderful and productive these machines are. But if people are talking about price increases during harder times, coil ears breaking, speakers not working.... then the mood to by Minelab's products is taking over the gains they made from the Equinox coming out and making old places new again.

[Aureous]

2 hours ago, phrunt said:

As Malaysia where they're all made has no bad inflation issues, shipping has largely recovered and returned to normal pricing there is little excuse to do this other than trying to make more profits riding on the tails of their previous success, only problem is in coin/jewellery detectors they now have stiff competition, in fact the competitors now really have the edge, especially Nokta with the price / performance ratio.

The mighty always fall at some point and healthy competition is something they're not used to, and clearly don't know how to react to.  The powers that be at Minelab likely know very little about their detectors, and the competitors machines and public opinion of them.

This whole subject has been covered in another thread/post but you've nailed it completely Simon. Minelab/Codan have the ability to weather any/all costs-of-production with their low cost production regime and 500-800% markup. This completely discounts any variance in the US$ exchange rates being a crucial issue...but of course does add a small percentage of fiscal stress. But the big issue is the large drop in revenue and profit this last financial year, which  has panicked them into a rash and impractical decision to ramp up prices, instead of stimulating sales with new product/s.  Simon, your last sentence sums up ML's problem perfectly. If they want to stay at 'the top of the heap', someone needs to shake the sh*t out of the board and place a product specialist (who knows the products, industry and community) next to them, advising constantly. I fear all they have done is allow Nokta to trample all over them in the future.

[dig4gold]

7 hours ago, phrunt said:

if sticking with Minelab just get an Equinox 800 and 6" or 10x5" Coiltek and have the superior detector than the GM, its days are numbered and needs discontinued and replaced with a multi freaker to catch up to the general purpose detectors for prospecting needs not price hikes.

I have a Nox 800 with 6" coil & the 10x5 coiltek. I still really like my GM 1000 with 5" coil.

D4G

[Tony]

I've pre-ordered a 1000 of these T-shirts......I don't think it will be enough.

Shows the back of the T-shirt......and then the front.

 

[Tony]

13 hours ago, Steve Herschbach said:

Maybe it’s only the Aussies that need to get out the Vaseline

Saw this shipment at the local dock this morning.......looks like plenty more to be offloaded from the ship.

Those small jars of Vaseline just won't cut it.

 

[Ridge Runner]

It is said “ Nothing Last Forever “ but tomorrow if I so wish I can order another Minelab detector and get my 15% Vet discount off of it .

 Minelab I may stand alone but I thank you for for a great product you have put out over the years.

 Chuck