[NSRCA-dist1] State of the Hobby Industry

[DaveL322]

Margins today for Tower are thinner than they use to be, with the possible exception of in house brands - brands like Flyzone, Tactic, Rimfire, etc for Tower/Hobbico and Elite, Hangar 9, Spektrum, etc for Horizon.
On top of that, it is very easy to work volume buying and coupons with Tower to get 15-20% off the regular Tower prices....And get free shipping.
Matching the Tower price meant something when it was the lowest price....It no longer is....Hobby King is the lowest price now.
The only ways brick and mortar can stand out today are with huge inventory (instant gratification) and outstanding customer service/expertise - both are expensive to have and the pricing will reflect that.
The only ways traditional manufacturers (and "big box" manufacturers like Hobbico and Horizon) can standout is by having exclusive innovative new products not available anywhere else, and by having products that are synergistic - ie, bundling ARFs with motors, ESCs, servos, etc.  And those advantages are short lived....Because Hobby King rapidly copies any product that has substantial sales....Which does leave a small market of premium products for discerning pilots for companies willing to service niche markets.
And just for perspective.....When the first very popular coax heli was introduced, the following year more profit was made selling replacement blades at $2.99 than selling the flagship radio at the time.
Regards,
Dave
Sent from my Sprint Samsung Galaxy Note5.
-------- Original message --------From: "Del K. Rykert via NSRCA-dist1" <nsrca-dist1 at lists.nsrca.org> Date: 1/10/17  4:31 PM  (GMT-05:00) To: JOE LACHOWSKI <jlachow at optonline.net>, "CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT" <nsrca-dist1 at lists.nsrca.org> Subject: Re: [NSRCA-dist1] State of the Hobby Industry 
Hi Joe...  Our local airplane Hobby Shop had for many years had a catalog of towers hobbies under his counter and would meet and sometimes beat their prices.. He is smart that way.. Doug realized he could not carter to the special needs precision pilots had for many items but those that he could obtain he would and did quickly and competitively. I knew some shops I stopped at refused to try to meet their prices which helped their demise. I don't condone what and how it happened..  Just observing the way modeling has changed drastically from what used to be. 
 
Del  


---- JOE LACHOWSKI via NSRCA-dist1 <nsrca-dist1 at lists.nsrca.org> wrote: 
> Funny he doesn't say anything about how their retail arm, Tower Hobbies 
> has destroyed the mom and pop hobby shop. I also, do not purchase 
> anything through outlets like Hobby King who undercut others with their 
> second rate junk that they sell.
> 
> Joe Lachowski
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> On Tue, Jan 10, 2017 at 01:58 PM, Anthony Romano via NSRCA-dist1 wrote:
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> http://www.uavexpertnews.com/industry-giants-flounder/ 
> <http://www.uavexpertnews.com/industry-giants-flounder/>
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>   <http://www.uavexpertnews.com/industry-giants-flounder/>
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> Industry Giants Flounder | UAV Expert News 
> <http://www.uavexpertnews.com/industry-giants-flounder/>
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> www.uavexpertnews.com
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> Industry Giants To Flounder: Having their cake and eating it too while 
> falling to their death in the rush to zero profits.
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