How Will a Bad Economy Impact the RC Business???
01-26-2008, 01:51 PM
#17
“It is not the strongest species
that survive, nor the most intelligent, but the ones most
responsive to change.”
Darwin
http://www.iveybusinessjournal.com/v...Article_ID=317
that survive, nor the most intelligent, but the ones most
responsive to change.”
Darwin
http://www.iveybusinessjournal.com/v...Article_ID=317
01-26-2008, 01:54 PM
#18
“It is not the strongest species
that survive, nor the most intelligent, but the ones most
responsive to change.”
Darwin
http://www.iveybusinessjournal.com/v...Article_ID=317
that survive, nor the most intelligent, but the ones most
responsive to change.”
Darwin
http://www.iveybusinessjournal.com/v...Article_ID=317
And the change is the same. Nothing has changed as in off road. There even opening another in Topeka. We have like 8 dirt tracks counting oval. Racing is huge in some markets.
Edit: Also one opening the end of summer In Lees Summit.
01-26-2008, 02:07 PM
#19
Onroad sales are always much less than offroad sales. Offroad attracts more than just racers. Onroad is strictly more of a racing suited area of the hobby. Onroad cars are extremely boring to run in front of your house. You cant run them in the grass or through puddles,strictly straight lines up and down the road. Offroad cars do and will always sell better than onroad cars.
TC sales are down right now strictly because of the price. That is a HUGE nut to pay for a car unless you strictly race. TC cars are now selling for $500 for a roller then comes the electronics. Before you know it, your in the thousands to play. That is more money than people want to spend to see if they will like it. You can pick up a RTR RD Logics Sho for $300. This is alot easier to swallow if you decide the hobby isnt for you. TC's sold alot better in the days of the TC3 due to the price. Even Xray cars were under $300 back then. This is why you are starting to see the 1/12th class grow. The price is 1/2 and the cars handle excellent. People are looking for cheaper ways to do what they love. TC is not that route.
TC sales are down right now strictly because of the price. That is a HUGE nut to pay for a car unless you strictly race. TC cars are now selling for $500 for a roller then comes the electronics. Before you know it, your in the thousands to play. That is more money than people want to spend to see if they will like it. You can pick up a RTR RD Logics Sho for $300. This is alot easier to swallow if you decide the hobby isnt for you. TC's sold alot better in the days of the TC3 due to the price. Even Xray cars were under $300 back then. This is why you are starting to see the 1/12th class grow. The price is 1/2 and the cars handle excellent. People are looking for cheaper ways to do what they love. TC is not that route.
01-26-2008, 02:29 PM
#20
If you check most LHS's you will see that they did NOT grow in 2007 as much as anticipated, also it is expected that 2008 will also be 'flat' in growth, hopefully what increases in business in the past yrs will hold them [LHS] over till a growth year comes around,
Gas prices, & vehicle costs, have scared many away. Smaller less costly RC cars have been somewhat of a 'boom' to many LHS's as consumers have less 'free' $$ available to spend on hobbies.
Those LHS's with cash to spend on 'diversifying' into plane/train/plastics areas will try to attract consumers willing to spend what little cash they have left over after filling Mom's Caravan up with 87 octane!
Those 'die hard' [read touring car] racers will back off the larger purchases and try to get an extra yr or so out of their 'PHI', as will the more expensive off road car owners. As the extra cash is going in the gas tanks of their work cars.
With oil at or near $100 barrel costs of consumables [fuel, paint, etc] also will rise, thus less racing time per buck = less 'pleasure' per buck.
Long post I know, but a lot more will be said, only the future will tell if any of us were even close.
Thankx, Bill
Gas prices, & vehicle costs, have scared many away. Smaller less costly RC cars have been somewhat of a 'boom' to many LHS's as consumers have less 'free' $$ available to spend on hobbies.
Those LHS's with cash to spend on 'diversifying' into plane/train/plastics areas will try to attract consumers willing to spend what little cash they have left over after filling Mom's Caravan up with 87 octane!
Those 'die hard' [read touring car] racers will back off the larger purchases and try to get an extra yr or so out of their 'PHI', as will the more expensive off road car owners. As the extra cash is going in the gas tanks of their work cars.
With oil at or near $100 barrel costs of consumables [fuel, paint, etc] also will rise, thus less racing time per buck = less 'pleasure' per buck.
Long post I know, but a lot more will be said, only the future will tell if any of us were even close.
Thankx, Bill
01-26-2008, 02:42 PM
#21
I have seen many people drop the money on an entry level 5th scale just because the price of fuel (even with gas at $3+ a gallon) is significantly cheaper than running Nitro or electric.... Yea, they are going to spend 800-1500 and tires are a lot more but at the end of the year you are spending much less than 8th and 10th scale.... Especially 8th scale...
Our declining dollar is making the biggest impact IMO... All of our stuff is made in Europe or Asia and our dollar sucks compared to the Euro and Pound...
Our declining dollar is making the biggest impact IMO... All of our stuff is made in Europe or Asia and our dollar sucks compared to the Euro and Pound...
01-26-2008, 03:12 PM
#22
Ya know I forgot about the Mini class.
And the change is the same. Nothing has changed as in off road. There even opening another in Topeka. We have like 8 dirt tracks counting oval. Racing is huge in some markets.
Edit: Also one opening the end of summer In Lees Summit.
And the change is the same. Nothing has changed as in off road. There even opening another in Topeka. We have like 8 dirt tracks counting oval. Racing is huge in some markets.
Edit: Also one opening the end of summer In Lees Summit.
01-26-2008, 03:25 PM
#23
I have seen many people drop the money on an entry level 5th scale just because the price of fuel (even with gas at $3+ a gallon) is significantly cheaper than running Nitro or electric.... Yea, they are going to spend 800-1500 and tires are a lot more but at the end of the year you are spending much less than 8th and 10th scale.... Especially 8th scale...
Our declining dollar is making the biggest impact IMO... All of our stuff is made in Europe or Asia and our dollar sucks compared to the Euro and Pound...
Our declining dollar is making the biggest impact IMO... All of our stuff is made in Europe or Asia and our dollar sucks compared to the Euro and Pound...
01-26-2008, 03:35 PM
#24
You run dirt.
Hell freeze over or something.? Although off road and on road are a breed apart theres a lot of racing going on in the dirt.
The classes are not diluted around here its the tracks. We will have 10 places to race dirt with in a 1 hour drive by 2009. Good for the racers, but bad for the tracks.
It will be a battle to draw a crowd and each facility will have to bring there A-Game. Good for the racer. I would say thats making the RC economy look good as as far the off road venue.
Hell freeze over or something.? Although off road and on road are a breed apart theres a lot of racing going on in the dirt.The classes are not diluted around here its the tracks. We will have 10 places to race dirt with in a 1 hour drive by 2009. Good for the racers, but bad for the tracks.
It will be a battle to draw a crowd and each facility will have to bring there A-Game. Good for the racer. I would say thats making the RC economy look good as as far the off road venue.
01-26-2008, 04:01 PM
#25
It is a presidential election year, and every 4 years it's the same old crap from the media, "depression is coming" just to push there own agenda.
Those that are caught in the housing repo's were in way over there heads or mostly were speck sellers and aren't the type of people involved with hobbies to begin with.
The economy is doing fine and RC racing will continue.
Hey, I'm helping, just bought a new B44
Those that are caught in the housing repo's were in way over there heads or mostly were speck sellers and aren't the type of people involved with hobbies to begin with.
The economy is doing fine and RC racing will continue.
Hey, I'm helping, just bought a new B44
The economy isn't nearly as bad as many think. The problem is the media keeps pushing the story that the economy is in a poor state when many economists say it isn't. Granted growth has slowed but it is still growing.
01-26-2008, 06:04 PM
#26
Tech Master
Plus the tax return for this year... hehehe. It's a good news for most of us.
01-26-2008, 06:07 PM
#27
01-26-2008, 06:34 PM
#28
Gas prices are having a big impact in the attendace of various tracks. People wont be as willing to drive 1hr+ to tracks if there's a smaller track 30 min away. Competition and track conditions may not be as good at the smaller track, but when it's 1/2 the distance to drive, it's worth it.
01-26-2008, 06:34 PM
#29
Gas prices are having a big impact in the attendace of various tracks. People wont be as willing to drive 1hr+ to tracks if there's a smaller track 30 min away. Competition and track conditions may not be as good at the smaller track, but when it's 1/2 the distance to drive, it's worth it.
01-26-2008, 07:28 PM
#30
I guess the fact my neighboor has had his house on the market for a 18 months and its still for sale, my bosses house is worth less today than what he bought it for last October, the 460 point dip in the Dow Jones last monday morning, the Fed's emergency drop in the lending rate at noon on monday, the huge trade deficit, new home sales are at a 30 year low, etc....are all figments of the liberal media's imigination.