What are the margins of most RC retailers
#31
Tech Lord
iTrader: (3)
I have a theory that says 20-40 percent of all hobby stuff made never gets used.
#33
It takes money to make money. What the distributor rely on is huge volume, because their profit margin % is even lower (our distributor makes less than 10% selling our stuff and and same goes for majority of the brands they stock) if you're someone like GP or Horizon and you have proprietary brands, then of course you make more. As someone have mentioned, you want to start a distribution company in this industry, get ready to pony up and bring a lot of capital into it.
What we are seeing currently in the industry is a lot of "shifting" of positions, manufactures trying to become distributors (almost every manufacture in the R/C industry is selling direct to shops and end consumers) and distributors trying to become manufactures (i.e. Horizon/Losi, GP/Duratrax)....there are very few "pure" distributors and manufactures left, and the hobby shops are the ones that are getting squeezed in the middle, and the main motivation behind these shifting of position by manufactures and distributors?........GREED!
Steve
p.s. I know too much and if I post any more, I will get my a$$ in trouble.
What we are seeing currently in the industry is a lot of "shifting" of positions, manufactures trying to become distributors (almost every manufacture in the R/C industry is selling direct to shops and end consumers) and distributors trying to become manufactures (i.e. Horizon/Losi, GP/Duratrax)....there are very few "pure" distributors and manufactures left, and the hobby shops are the ones that are getting squeezed in the middle, and the main motivation behind these shifting of position by manufactures and distributors?........GREED!
Steve
p.s. I know too much and if I post any more, I will get my a$$ in trouble.
Last edited by teamstrc; 11-01-2008 at 03:14 PM.
#35
I work at a hobby shop and let me tell you......you are not going to get rich owning a hobby shop online places like amain buy so much they get a discount and when I try to match them most of the time I make 10 to 20 % over cost if that.