Originally Posted by smojoe
I knew something bad was going to happen to them when tower hobbies stopped carrying their stuff....
No disrespect to Great Planes or Tower, but Tower is not a benchmark for what is or is not successful, at least not since Great Planes (Tower) and Horizon entrenched themselves with exclusive distributions deals and the like.
You will not see Horizon-exclusive products (Losi, JR, etc) sold through Tower, nor will you see Great Planes-exclusive prducts (O.S., Futaba, etc) sold through Horizon.
It's debatable whether or not these deals hurt or help the industry, but you'll see more exclusivity before you see less of it. Sometimes it is more painful for retailers than anything. As an example, we'd love to continue to carry Airtronics stuff, but they went exclusive with Global Hobby or were somehow acquired by them (don't read that as a rumor or anything, I am not sure as to what happened), and as a result we'd now have to maintain an account with Global and order through them, pay more shipping, and so on, just to get Airtronics stuff. It's a pain in the ass. And that's just one example, I don't mean to pick on Airtronics or Global.
As for Losi, they are not abandoning their race program, although they very keenly understand that the market is for RTRs above and beyond racing kits. Chevy or Dodge or Toyota spend a lot of money on their race teams in various series, but they make the bulk of their money selling consumer cars. Why is that? Think about it.