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Hobbico Closes A Main Hobbies Dealer Account

Hobbico Closes A Main Hobbies Dealer Account

Old 11-20-2007, 10:24 PM
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Originally Posted by wyd View Post
I do feel fortunate that I have a great hobbyshop that I support. I try to buy everything from them that I can. Nothing better than having a great shop to help you out in person if you have a problem. A few dollars in cheaper from mail order is just not worth it vs spending a little more to your local shop.
Me too...Speedtech. I buy everything I can there. Oh wait...LOL...he sells on the web, so I guess I shouldn't buy there, huh?
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Old 11-20-2007, 11:09 PM
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Originally Posted by mrrcguy View Post
5% Are you seriously proud of this "deal"? Quit being a dick and give that guy a chance! 5% WTF! Do you realize how crappy that is in terms of trying to make a living?

Let's say this shop owner you're dealing with hopes to make (personal take home pay) 30k per year. That's a minimal income by most standards, but stay with me on this. At your "deal" do you realize how much product this guy would have to move to get by? Even if he had no expenses what so ever, he would still have to sell over $600,000 worth of product. Do you realize how many shops sell that kind of volume? The answer, is very few. Does this guy have kids to feed? Do you? Would you care either way? "How much is your business worth?" WTF?
Huh? The guy is making 5% for doing nothing. Every item has to be ordered. Easy money for him. He orders the items I request and I come in and pay for them. He does not even have to put up the items I order. I walk in, pay him, and walk out with my box of parts. The average order is about $200. The total time he has invested is 5 minutes. Lemme see. $10 for 5 minutes worth of work. Doesn't seem to bad to me.
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Old 11-20-2007, 11:17 PM
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I'm not going that far...LOL...but 5% on $400+ car isn't great, but they live with it if it turns quickly, because the rest of the parts that are bound to be sold are at 50% or better.

Anyone with a hobby shop will tell you that the kits are a loser deal, parts and the rest of the equipment are where it's at.
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Old 11-20-2007, 11:34 PM
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Replacement parts are 50% at the most. All other accessories give a shop mabye a 35% margin at the absolute best, and to compete on things like ESC's shops are looking at 20-25% margins. If you want to make money the worst business you can possibly have is a hobby shop, because the prices demanded by the customers are so ridiculously low. Not to mention hobby shops have to carry an enormous ($1,000,000+) amount of inventory to keep customers happy. In the store I work at if it weren't for the fact that it also sells toys it would go under in less than a month, or have to reduce its inventory, or massively cut costs. The hobby business would be much healthier for the stores if MSRPs, or MAPs were actually used across the board so that there would not be so much undercutting. Yes I do also understand that as racers we need to get things cheap since this hobby is so expensive, but it sure is bad for the businesses that supply us.
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Old 11-20-2007, 11:41 PM
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no offence guys.... a lot of people in RC are the biggest tight arses i have ever seen... also you get some of the biggest douches aswell. maybe its something about the mentality of grown men playing with toy cars hehe also i met some great people aswell.
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Old 11-21-2007, 02:18 AM
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Originally Posted by magm20001 View Post
no offence guys.... a lot of people in RC are the biggest tight arses i have ever seen...l.
QUOTE OF THE DAY

the truth hurts
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Old 11-21-2007, 05:41 AM
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Originally Posted by Turbo Joe View Post
Me too...Speedtech. I buy everything I can there. Oh wait...LOL...he sells on the web, so I guess I shouldn't buy there, huh?
You are totaly missing the point Yes he sells on the web but he also has a store front correct ! HE has overhead is what I am trying to say !
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Old 11-21-2007, 05:57 AM
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Originally Posted by wyl03 View Post
QUOTE OF THE DAY

the truth hurts
Amen
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Old 11-21-2007, 06:00 AM
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Originally Posted by Turbo Joe View Post
9/10 business owners chafe at competition and say it's not fair. The successful ones stop whining and get better at what they do and that's why they're successful.

Quit whining. Most of the online shops are just shops like yours...only they whine less.

I'm not begging anyone for a discount. If they don't want to sell things at a fair market price, it's not my job or obligation to beg/mooch/cajole or otherwise convince them to drop their prices. That's not how it works.

Again...I'm not paying $50 for a set of on-road tires just so some kid can get his T-Maxx broken in for free. They price stuff from FULL list and then work back...no racer net pricing. If a Novak motor lists for $150, then they start at $100 and complain that they don't make enough money...maybe they drop it to $90, when you can find it at any other shop around here for $79 to $85. No thanks.

Most of these shops have decided to cast their vote with their prices and inventories...and the vote went to the noobs who don't care what they pay. Again, it's not personal on either side, but it's apparent they don't want my business and so they apparently don't miss it.

Time to strap some on, quit whining and get into the pool with the rest of the adults. Competition is here to stay and all the carping in the world isn't going to change it.
Look whos whining It sound like you are 15 give me a break dude
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Old 11-21-2007, 07:02 AM
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Originally Posted by mrrcguy View Post
I'd just like to say that I'm thankfull to have a good, loyal, customer base. Also, I'm proud to say that my customers no that a portion of every dollar they spend in my shop comes right back to them in the form of a great place to race.

See what my customers "built" at www.rchobbiesraceway.com
I totally agree we are also thankful to our customers .
And keep up the good work Excellent!

Here is some Pic’s of our track’s and store
http://gallery.eliminator-rc.com
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Old 11-21-2007, 07:07 AM
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I really think that manufacturers need to also get involved in map pricing to avoid all this. The one thing that gets to me about hobby shops, not all of them but quite a few them expect loyalty but price gouge on newly released items. lol
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Old 11-21-2007, 07:10 AM
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I believe the most important thing is to support your LHS that also has a track. I have rarely seen items that are less expenisve in a LHS than online. However, one must ask of themselves, if there were no tracks to go to, would I still be involved in this hobby? I think most would answer no, unless all they enjoyed was running around in their backyard. I am willing to pay the bit extra to keep a track/lhs open so I have some place to go.

From the people who I have talked to, the margins are very very slim in the RC world. It is no surprise that a lhs cannot compete with a large online retailer that can buy in volume. The online retailer has a customer base throughout the US and even globally, while the lhs usually just caters to the locals. To me, it is the same as going to walmart, or the locally owned mom/pop grocery store.

My father owned a lumber yard for several years and the business was great until a little company called Home Depot opened up. The only way he could compete was to totally change some of his product line to items home depot did not stock. There was absolutely no way he could compete in terms of pricing on common items = Tower vs LHS.

It is up to the hobbyist to decide if they want to loose their LHS to save money. I do know this is a tough decision because sometimes the savings online can be very substantial.
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Old 11-21-2007, 07:16 AM
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I'm tired of all the Sales Man B.S.
I haven't met a Sales Man that ever made money. From Mortgage brokers, Car salesman, To R/C car sales. They all have the same story of not making money on a deal..... lol
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Old 11-21-2007, 07:23 AM
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Originally Posted by Francis M. View Post
I'm tired of all the Sales Man B.S.
I haven't met a Sales Man that ever made money. From Mortgage brokers, Car salesman, To R/C car sales. They all have the same story of not making money on a deal..... lol
Maybe its time to pay it forward ?

Meet the right people .
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Old 11-21-2007, 07:27 AM
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Originally Posted by Eliminator-rc View Post
Maybe its time to pay it forward ?

Meet the right people .


You know what I forgot to put J/K on my previous post.lol
I don't mind paying a little more but I just don't like my loyalty being tested especially when my lhs really don't have a track.
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