R/C Tech Forums

Go Back   R/C Tech Forums > General Forums > Electric On-Road

Thread Tools Search this Thread
Old 01-22-2011, 06:33 AM   #16
Tech Elite
Join Date: Oct 2005
Location: St. Louis
Posts: 2,172
Trader Rating: 32 (100%+)

Originally Posted by superspeed View Post
Don't let the cost spoils our love for the hobby.

I work at a hobby store, just passed my 11th anniversary in early Jan. The markup on r/c kits, radio, engines, chargers, etc are much lower than replacement parts. Even hop-up parts are discounted pretty well where replacements are priced at full retail/msrp.

Hobby distributors get r/c products less than 50% of msrp. I think your 33% might apply for them.

I need to save up for the next kit > RC8SCE
I've also worked at a hobby shop, my own. I owned a track and hobby shop called Hensley RC Raceways, Drew Ellis's former home track.
We were open for 3 years until on-road tanked.
Typical mark up on a kit is not much, maybe 10-20% if you use msrp, but to compete with on-line shops you end up charging about $5 over cost. As for parts there is about a 40% profit. As with any business I deep discounted frequently used things, like tires. Just like when I worked as a manager at Best Buy, we lost money selling a computer, where we made it up was in peripherals and cables, some of which are marked up extremely, for example, a $70 hdmi cable is available to an employee at 5% over cost, which is around $7. The numbers I used are just a general guideline for manufacturers, not distibutors or retail shops. And of course it is not the same for all, it depends on amount sold. The more you can sell the lower the profit margin you can get away with.
Chris Lockhart

chensleyrc1 is offline   Reply With Quote
Old 01-22-2011, 09:56 AM   #17
Tech Master
???E-Racer's Avatar
Join Date: Apr 2008
Location: Owensboro,Ky
Posts: 1,743
Trader Rating: 3 (100%+)

Originally Posted by wingracer View Post
As others have said, it's mainly the cost of the machines, molds and r&d you are paying for. If companies could sell millions of kits, the prices would be substantially lower but when you only sell hundreds or a few thousand at most, all that expense has to be spread over a smaller amount of product.

That being said, there is more than $10 worth of materials too. The graphite alone is probably $40 or more. Plus $20 or more worth of bearings.

Remember the old gold tub RC10? The bushing model was like $80 or so less than the bearing version.
I remember the gold tubs. And bearings were the main hopup part,
besides an esc. Esc's back then costed about as much as the car itself.
Sure I was a little kid back then but I do remember a little bit.

And back on topic, to market a top of the line touring car
probably takes millions and billions of dollars.
Aluminum parts have to be CNC machined, Anodized, if there is any color
to the part to be added...etc..most top of the line touring cars have
aluminum on them, mainly the bulkheads.
Novak, Viper, LRP
4wd Slash Platinum,4WD SC10,Stock Slash Latemodel Oval,Losi Slider,E-firestorm Bomber, Team Terribles,www.rkhobbies.com,GOLFLAND USA
???E-Racer is offline   Reply With Quote

Similar Threads
Thread Thread Starter Forum Replies Last Post
Rise Up Against AMBrc's Overpriced Transponders!!! Stop The Madness!!! MotoRider42HC Radio and Electronics 448 11-21-2014 06:42 AM
BMI's DB12R Mr. Shookie Electric On-Road 8717 11-07-2014 06:33 AM
What's your favorite RC magazine? mdowney Electric Off-Road 115 10-18-2012 06:53 PM
How to really improve your company's market share in the R/c community Wild Cherry Electric On-Road 89 03-17-2008 06:06 AM

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

All times are GMT -7. It is currently 10:18 PM.

Powered By: vBulletin v3.9.2.1
Privacy Policy | Terms of Use | Advertise Content © 2001-2011 RCTech.net

SEO by vBSEO 3.5.0