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Originally posted by darell:
Geep -

The current LS AND the current standard AAA both use S-ranked LEDs. The Premium AAA should be as bright as the current line. Of course tweaking of the electronics could make the any of these brighter...
<font size="2" face="Verdana, Arial">So what is now the standard AAA is going become the "premium" AAA, cost more money and only be availabe thru Arc direct?
 
I'd like to throw out some idle speculation based on economics. This is purely conjecture on my part; I have no inside information nor has Peter discussed any of these issues with me. I base my thoughts on the market as I have come to understand it as well as some recent trends I have seen from LED suppliers.

Binning and ranking of LED's coupled with a rising demand for LED's has brought about a premium attached to the preferred units. S rank Nichias were readily available and currently are scarce. The market for Luxeons is becoming educated and discriminating; putting higher value on certain ranks of LED's which is becoming a premium to be paid and passed on to the consumer.

Funds are required for R&D and these funds must be generated from profit. Arc flashlight can't profit from economies of scale that are enjoyed by other larger manufacturers IMHO. For Arc to forge ahead with innovation, the tab needs to be picked up some how.

My final guess as to why we have seen price increases is the one that I find most dismaying and may brilliantly point out a typically hidden cost in goods and services provided domestically. I refer now to funds being diverted to a war chest for legal representation. From what I have gathered in reading certain posts here on CPF as well as reading between the lines, I assume that there is an additional cost of doing business for Arc that wasn't there, say 6 months ago. And make no mistake, this is a cost of doing business and if these costs aren't paid and covered, ultimately, business can no longer be conducted.

Again, I want to be clear that these comments are speculative and I may be off the mark considerably. I will say that in reading PG's posts on the forum as well as some phone conversations we have had, I have the impression that he is basically an honest and up front person trying to provide a quality product at a fair price. If the prices have been increased, I suspect there has been an increase in material costs as well as other costs in doing business.

Will the market accept these higher prices? Time will tell. Is my speculation sound?

- Don
 
Well written and thought out Don. I will concur with these observations. Question is... Will the dealers go for this new strategy. I, myself, am considering switching sales focus from Arc AAA to CMG Infinity.

When I first became a dealer I did it warily. As Peter points out dealers want a consistent product line. It seemed to me that the Arc AAA line was stable. After a few months of aggressively promoting this product to my clients sales are finally picking up. Just as they do. The product line changes. Now I have to backtrack some of the things I said about the line. That hurts.

The higher prices the market can handle. Even shortage of product the market can handle. A product line that changes when it is at the top of its game and unchallenged is unnecessary.

Note that all of this concerns the Arc AAA. The LS, being cutting edge as it is, is on the right track and Arc flashlight has been great at taking the curves that Lumileds throws.

The Arc LS is a high end product. No doubt about it. Most LS customers are higher income earners or serious gadget freaks. That said, these consumers wants the best and only the best. Second quality product does not appeal to them. Does second quality product strike any of you as ultimately desireable? So now I can only offer my customers what Arc will sell me. In full disclosure I will have to tell them "If you want the best you have to buy directly from the factory". Most will wait and buy direct from the factory. It is a total 180° turn from Dealers having the good stuff and the factory selling "seconds". I may be way off but it feels like dealer/manufacturer competition to me. Ask Strategos and other surefire dealers regarding the KLx situation what that feels like.

Looking back now this has little to do with most of you as the end consumer. It's mostly dealer concerns. So ask yourself how will Arc's relationship with its dealers affect your ability to get unparalled LED products at a fair price? Maybe none. Maybe just rambling on my part. Maybe none of this sentiment is shared by any of the other dealers. As Don said "Time will tell..."

Best regards,
Randy
 
Good points Randy.

As a "partner" in BerleleyPoint, I too can look at the issue as both an end user and dealer. My guess in the new program is not necessarily that Arc is trying to keep the cream for themselves but perhaps is more concerned with making sure that the dealers have sufficient access to the more common or standard product. It seems to me that the "standard" level of offerings is a concession to the sporatic availability of higher rank or binned LED's. This includes the Arc AAA.

I have been buying small lots of the NSPW500BS from Nichia for over a year now and I was receiving S rank every time. I can't specify what rank I get as I am a very small fish. Had I been in a position where this rank were critical or part of my claims, I would now be screwed as the latest shipment of LED's are rank R. If I had to have S rank right now, I would need to shop around for these and no doubt pay a premium to get them. If you look at the Nichia general specs on the NSPW500BS, they use the luminous intensity range of the R rank. An S rank is a "bonus" . It seems that Arc could base the AAA on the R rank specs and then provide one SKU both on their site as well as to dealers. It is my guess that PG has chosen to segregate the S rank for the likes of CPFers as well as other discriminating flashaholics and the like.

Realistically, I suspect that a reduced luminous output would not be noticed by the average user of an Arc AAA in real world applications. All of the other features and benifits of the Arc AAA are present in the standard unit and as a dealer, my primary concern would be to have a full shelf to pull product from.

Aside from the silly claims of 100,000 hours of life, in some cases, most of the other LED flashlights I have seen being sold make no special claim as to rank or luminous output of the LEDs. What is the rank of the LED used in the infinity?

I think PG has shot himself in the foot here by being to open and vocal as to the actual specs of the LED's and his intent to provide only the very best. He has made distinctions where others have not.

- Don
 
Darkgear and McGizmo, I find your posts are most interesting. (Even if it 'hijacks' Gransee's post to a whole different direction.)

Regarding the lawsuits, not only does it exact a financial toll. However, another major toll is the one on the emotional/mental 'bandwidth'. A lawsuit has a way of preoccupying one emotionally so that there is little energy left for other things. Of course, I hope that this is not affecting the Gransees in the same way but often, it does. It is not uncommon for larger companies to hassle smaller ones, spending them into the ground in legal defenses. I've maintained that lawsuits is sometimes used as a legal means of harrasing smaller companies out of the business. (Of course, having not seen the actual content of these suits, I can't comment on their validity so I'm stating a generall principle.)

Darkgear, I definitely understand your frustration as a dealer. This issue is timeless and is true for the larger corporations as well as smaller. (i.e. When Compaq or IBM tried to go with the Dell model and sell direct, to the howls of their dealers.) The question I ask is whether Gransee's motive is: (1) greed (meaning he is doing well and yet trying to increase his profits at the expense of his dealers)or (2) survival (meaning he is barely breaking even or below breaking even.) I deem the first case greed because of the implicit understanding in my mind that dealers do advertising for the manufacturer and thus, should reap in the rewards. Cutting the dealers out then is to withold rewards for the dealers' work. HOWEVER, if it is the second case, then Arcflashlight's move is appropriate because without restructuring the products and distribution method, Arcflashlight would not be in existence for long. Obviously we don't know Arcflashlight's balance sheet but from our brief interactions, knowing the Gransee's convictions, and also reading about the incredible R&D problems he has had, my read is that #2 applies. If this is the case, then the dealers are reaping the benefits (including the 30 day satisfaction guaranteed? How does this work with dealers' clients?) and Arcflashlight is not sharing equally in generating the profits to cover costs.

Of course, one solution is for Arcflashlight to increase the premier line to much higher (i.e. $200) cost and then sell to dealers too. This would really drive down the demand though.

So yes, this is a difficult line that Arc has to figure out. One can mistake Arcflashlight's decision as wanting the cake and eat it too. (i.e. Have dealers provide more points of sale while reserving the highest profit items for direct full retail sale.) However, in this case, it is a small company, seeking to bring the best product into the market with integrity, under lawsuits (frivolous or not), AND most importantly, is basically family run. Behind Arcflashlight are the Gransees who also need to make a living as with everyone else.

My thought is that in this case, we should cut Arcflashlight some slack. In return, may be nice for Gransee to assure his dealers that they are seeking to be as generous to dealers as possible as they get better fiscally, have a more stable product line, and more consistent supply of premier luxeons. I'm with McGizmo's note that other manufacturers do not state what quality their LEDs are, and thus, resolving one of the problem Gransee is facing.

Of course, it is possible that the market is not right for such a premium flashlight given the costs. (99% of the population would probably gasp at $150 for a tiny flashlight.) But that is conjecture for a different thread. (i.e. If that is the case, then either drop the market or find a cheaper way to produce the LS with fewer features.) I find this whole exchange very interesting.

MO
 
Hopefully, our efforts towards consistancy will make the product more available. And I don't mean more available by making it less desirable.
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I also don't want to dumb it down. Just find a smart way to deal with unpredicatable LED supplies, contraints of contractors, competitors and still maximize development.

No problemo
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Peter
 
Hang in there, Peter...hang in there!
We`re with you.

Just keep on doing whatever is necessary for the survival of Arc, and for its future growth and development.

Best wishes...and may you and Merri enjoy the Christmas holiday.

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It's definitely better from a customer's standpoint to have 2 categories of Arc LS because the customer at least gets what he/she paid for. I prefer to pay extra knowing i'll get a P/Q flux rather than paying less price and not knowing whether it's going to be an N or P flux unit that i'll get. It's like buying a car. As an example, for a certain model, you get to choose between a 180horse-power model at $30K or a 240 horse-power model at $35K. I definitely don't want to pay somewhere in between, say $32K, and hope i'll get the better model but i could end up with the lower end model instead.

Whether the standard Arc LS and the Arc AAA will do well in dealers' hands remains to be seen. We will have no idea till a couple of months from now. For a lot of people, whether it's N or P flux may not be that important, so they will all want the standard Arc. If the dealers aren't doing well with the standard Arc , I'm sure Peter will take steps to remedy the situation. Everything is driven by supply and demand.

I also agree that Peter has been extremely honest with his remarks and information regarding the LED and the flashlight. But I appreciate that. Amongst other things, it helps to educate the consumers. And I believe in the end, an educated consumer is a better customer.
 
123 twist pack vs. 123 click switch;
After giving the 123 click switch favorable comments the last couple of months, I find my self almost daily reaching for a “twist 123 pack” configuration to carry in the watch pocket of various brands of pants. Best “carry light” out there in my opinion.

With an o’ring around the middle, it stays in the pocket, and makes for a comfortable grip when in use.
123 click switch is a great coffee table light, and has excellent handling characteristics, in my opinion, excellent for a jacket pocket, etc.
I am happy to own both, and feel that there is much to say about the virtues of providing both for the public. They do go on the same head, and it shouldn't be too difficult to offer both I would think.
Simplifying is one thing, moving away from sales of a good product configuration is another.
There seems to be a typical problem encountered with engineers developing a cool product, and marketing actually wanting to put products out there that will sell.
Or in this case PG changing hats back and forth.
Bottom line, both configurations would seem to generate sales.
 
As a person that attempted to buy a ARC LE ($30 shipped) and finding out that they are gone... I looked at the CMG Infinity Ultra AA light. The Ultra looks a lot like the ARC but is a little bigger, takes lithiums, is brighter and is available... and much cheaper.

I really like the idea of the ARC AAA LE, but it is expensive, unavailable and now, only from one source. I would not worry about the dealer thing, I would be concerned if CMG just made a AAA version of the Ultra. Heck, if Maglight wanted to make some serious bucks off of LEDs, they could make a Nichia powered solo themselves and sell millions of them at Wally World for $16.95

I wanted to join the ARC AAA LE group for $30, now I have to wait two more months and boost the price 50%. Meanwhile, I will get the Ultra and see if that will meet my needs. The good thing about being a flashaholic is there is always room for more flashlights
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I will probably talk myself into blowing $45 for a penlight by putting Lithiums into the Infinity for "cold useage" or something.
 
A big Thanks to PG for the update! If the high quality LS bulbs are in such short supply, I see nothing wrong with selling the Premier editions ARC-direct only. It doesn't make sense to offer such a limited edition to dealers only to have 20 different dealers then calling and hounding ARC every week for their own 6-month backlog on Premier editions. That doesn't help us or the dealers or ARC.
 
I have a question somewhat off topic perhaps.

I'm aware of a couple of LS based flashlights on the market now including Peters. If the problem is that Lumileds are keeping the good ones for the "big fish" then who are the big fish?

I'm just not seeing car headlights, or other lighting products on the market that would qualify for lumileds 500k direct order and get what you want status. Where are all the "good" ones going?

Just curious!
 
James S,

I'm speculating the good ones are going to manufacturers *not* making flashlights.

A few months ago, I spoke to the Lumileds Asiapac manager, who happened to be based in Singapore at the time. He mentioned several times during that 45-minute meeting that Lumileds is churning out at least a million luxeons a month. He also revealed that over a million luxeons were sold to flashlight manufacturers in China. I'm not quite sure if American (or other) flashlight manufacturers have been buying in that capacity, so that means the total consumption of luxeons for flashlights must constitute a pretty low percentage of overall sales.

Their website and datasheets tout various partners they work with on products that use the luxeon - most of them are non-flashlight. IMHO, these mfgs are getting the pick of the crop where luminous flux, color and consistency are concerned, quite simply, because their apps absolutely need these characteristics. Inconsistent LED quality may be a tolerable PITA for flashlights, but absolutely unacceptable for primary illumination (eg. like in store displays...etc).
 
I'm still not sure how these 2003 product offerings are going to work but I'll give it a go without too much fuss. I do have a suggestion, however, for the AAA Premium.

The reflector is pretty shiny/smooth but everytime I look at it I can't help but think that it could be a little smoother ergo, a bit more reflective. Perhaps the Premium could have a mirror finish and the regular AAAs would remain as is.

In addition to the different LEDs, this would truly make the light "Premium" and I don't think that extra bit of polishing would add too much to the production cost.

Just an idea...
 
Good idea, Jeff!
For the extra $12 to $15 the premium commands over the AAA, the mirror finish to go along with the S-rank LED sure would help justify it to my spouse!
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Jeff & BentheadTX,

In the meantime, if you want shiny reflectors, get some Flitz metal polish. A little dap on a tissue or paper towel wedged into the head between the LED and reflector and some good spinning will bring a high shine to the reflector as well as polish the LED up real nice! Just don't let your spouce see you do it.
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- Don
 
what's binning? what difference in output and runtime will be between the new le and premium?
 
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