Dealer Xing

iTrader: (13)

Even Kyosho and Tamiya both have their HQs established in USA, most LHS and Online retailers in USA are still charging 100%+ markup on parts. I have buddies who work in Hobby shops both in Asia and in USA, the wholesale costs of the parts are the same here and there but I'm paying 100% or more on markup here in the USA. I know this is an expensive hobby but shouldn't the prices be lowered now since Kyosho is no longer distributed by Great Planes? The LHS wants $40 for a set of 10pcs Kyosho Mini-Z AWD bearings (MDW001), that's insane. RC-champ in Japan is selling most Tamiya and Kyosho parts at almost half the costs compared to USA. I can't wait until my next Japan trip to grab a full bag of parts back to the states. I'm sick of paying for overpriced parts + 8.75% local tax here.

DA_cookie_monst

iTrader: (1)

RC-Champ gets to buy them in loads and sell them off cheap. also there is labour cost in Asia which is FAR cheaper, this undermines LOTS of other industries, not just RC Cars.

just be happy with the fact you pay less than us guys in the UK, where you pay say $130 for a Tamiya kit, we pay £130 which is about $170.

Dealer Xing

iTrader: (13)

Yes but my point is since Kyosho is now distributing its own parts, shouldn't the wholesale prices be lowered compared to when they were distributed by Great Planes. This is what my friend at a hobby shop told me.

Carl Giordano

iTrader: (32)

I agree....you comments should be e-mailed directly to Kyosho. Problem is they have no control over cheap imports.

They do nothing to protect the US market and domestic Hobby shops from cheap on-line retailers. The Asian manaufacturer's have no control and they don't want to enforce any controls.

Basically, they don't care about the LHS. Times have changed since I've worked at a hobby shop...I don't see how the traditional retailer can afford to make a living anymore.

RickyIS300

Japan salary and standard of living is just as high as in the U.S. and RC Champ is a mail ordering company just like Tower here. The cost of operation in the U.S. is higher and therefore the higher markup is necessary for the hobby shops to survive. However, I do think Tamiya & Kyosho USA wholesale prices are way too high. In terms of sales volume., I don't think either of them are doing too well right now. They are basically trying to sell to U.S. dealers for more than the street prices in Japan.

kidDynomite

LHS come and go. Some are lucky enough to have lasted as long as they have, but that's maily because they've evolved and try to cover all hobbies. Not just RC cars + online service and mail orders etc.

Honestly, I used to always order my Kyosho parts oversees. Now that Kyosho America is established, I do see better parts availability. But I also like to know that I have hobby shops close by. So most times I buy from them for support.

Other reasons for markups:
Supply and Demand
"Win on Sunday, buy on Monday"
"Must-have!"
ie:"V-one" to V-one R > V-one RR > V-one RR Evo > V-one RRR > V-one RRR WC ETC OR GET LEFT BEHIND MENTALITY

DA_cookie's right. Be happy that you're dollar isn't in the UK. Heck, I feel really sorry for the RC enthusiast who lives in a poor country. Imagine having to sell your family goat just to by a used NiCd pack.

MrUnlimited

Problem is often transportcosts. Here in the Netherlands parts for r/c cars costs twice as much as in the USA, but since the internet most people found stores in Japan and Hongkong so they can buy cheap. Another problem is that there too many stages are between manufacturer and consumer which become costly since thay all have to pay taxes, inventory (even in an single part you pay a piece of the other inventory) etc. If you could buy direct from the manufacturers (sorry for the independent stores) it would be much cheaper.

Dealer Xing

iTrader: (13)

RC-champ is not a mail-order only business. I have been to their store in Tokyo several times. Their web prices and store prices are the same. It's like a supermarket where you can pick all the parts you want from the wall and throw them into your shopping basket.

Rent and labor costs are not cheap in Japan and Hong Kong compared to the USA. They also pay $6 USD per gallon of gas so transportation cost is also high there.