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Old 11-14-2007, 02:12 PM   #301
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Not selling jaco tires is fine, but not allowing people to run them is not ok.
Sure it is, last I checked its a free Country. And a private business like mine and Jaco's can make up their own rules.

Besides my group of racers are pretty good people. And I'm sure some of them will see this post. They have seen tracks strugle and die in our area. I have no problem showing them my costs on the items I sell. And I am very competitive with anybody in the hobby business, except for these tires for some reason. If I put it to a vote they would probably side with me on this issue. Especialy if I have to raise the race fees to make up for the lost income on tires.
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Old 11-14-2007, 02:46 PM   #302
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Sure it is, last I checked its a free Country. And a private business like mine and Jaco's can make up their own rules.

Besides my group of racers are pretty good people. And I'm sure some of them will see this post. They have seen tracks strugle and die in our area. I have no problem showing them my costs on the items I sell. And I am very competitive with anybody in the hobby business, except for these tires for some reason. If I put it to a vote they would probably side with me on this issue. Especialy if I have to raise the race fees to make up for the lost income on tires.
Hi Mark,

As one of the online retailers working to promote the Jaco product line I just wanted to address your statements briefly. I would like to make it as clear as possible, we are NOT making much money promoting this product at our current price. What we are doing is helping to get the product in racer's hands at a price low enough to encourage them to try them out while building our database of customers. As a retailer I am sure you understand the importance of sales and promotions to bring more people to your store.

This pricing will NOT last forever in our store. We have not yet selected a date to end this current sale but I assure you it WILL end.

I also just took a moment to search our database of orders and I will say that since we began this promotion we have not shipped a single pair of tires to your state. Obviously there are other online merchants running similar pricing for these items and perhaps they are the source of your lost sales.

To sum it all up, I can understand where you are coming from completely but on that same note I hope you can appreciate where we are coming from. Consumable items fuel the racing community and I couldn't imagine our business not being involved with that to help build awareness of our other products.

Take care,
Nick
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Old 11-14-2007, 03:12 PM   #303
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Nick I was told by Jaco two weeks ago when I called them about this issue, that the $9.99 price was to low. They assured me they would call the resellers and get them to price them closer to a market price. I'm not blaming you or any other mail order business for this issue.

I still sell more Jaco's right now than other tires, at least for 10th and 12th on-road. I just makes me look greedy when people see this type of pricing. And I price them well below suggested retail. Right now if I matched the 9.99 price points based on my costs, the profit wouldn't cover a crudy cup of coffee at a fast food joint.
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Old 11-14-2007, 05:05 PM   #304
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Mark, we have no control over what some people decide to sell our product for. As someone else explained, they are using our product as a loss leader to sell other items. All we can do is ask them to play fair. They are, however, not obligated to do so. I know one mail order company that offered a deal on our tires buys from a major distributor just like you. I don't understand the reasoning of punishing my company when they are buying from the same source you are. The deals we are offering on our tires are pretty much the same across the board. We sell to all our distributors at an aggressive price. We don't play favorites. If you are selling more JACO's right now than other brands, why would you stop? Obviously, these online deals have not impacted your sales if this is the case. And if everyone was buying from online, what good would not stocking JACO do? Everyone would just buy online. My feeling is that if you sell our tires at a fair price (not crazy low), your customers will be content to not have to pay shipping and go through the extra effort of buying mail order. I don't think selling a product at a reasonable price makes you look greedy. I'm sure your customers have seen this and applaud your efforts to protect your interests.
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Old 11-14-2007, 05:09 PM   #305
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I wonder if all that money they're saving on glue is why the price of the tires is so low? :-D

I really do like the Prisms, but man they come unglued really easily.
Unglued or chunked on the edges? There is a big difference. You know, we guarantee our tire to stay glued so if you have any come off, we will replace them. Honestly, I have only seen one Prism come unglued (just barely) along the edge. Not saying it isn't possible. Send them back if it is an issue. I would love to see them so we can learn from what happened.
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Old 11-14-2007, 05:38 PM   #306
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Unglued or chunked on the edges? There is a big difference. You know, we guarantee our tire to stay glued so if you have any come off, we will replace them. Honestly, I have only seen one Prism come unglued (just barely) along the edge. Not saying it isn't possible. Send them back if it is an issue. I would love to see them so we can learn from what happened.
Jack,

Actually unglued, like where they're separating from the rim. The foam is still intact, not torn or chunked, but the interface between the tire and rim seems to be the issue. I'll see if I've got any that I haven't reglued that show it clearly. I wasn't aware of that guarantee, that's good to know.
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Old 11-14-2007, 06:01 PM   #307
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If the foam is still on the rim, even a thin layer, then they ripped (common for whites and yellows on bumpy tracks). If there is clean white rim showing, then they came unglued. Send them back anyway if you can find them. Here is something that not many people know- if you have a tire that comes unglued around the edges just a bit (about 1/16") it may be from heating the edge of the tire too much during the truing process. If you sand or file the edge of a tire and get it too hot, the glue will break down and the bond will fail. This is not unique to our tires, but most tires bonded with CA glue.
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Old 11-15-2007, 09:31 AM   #308
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Mark, we have no control over what some people decide to sell our product for. As someone else explained, they are using our product as a loss leader to sell other items. All we can do is ask them to play fair. They are, however, not obligated to do so. I know one mail order company that offered a deal on our tires buys from a major distributor just like you. I don't understand the reasoning of punishing my company when they are buying from the same source you are. The deals we are offering on our tires are pretty much the same across the board. We sell to all our distributors at an aggressive price. We don't play favorites. If you are selling more JACO's right now than other brands, why would you stop? Obviously, these online deals have not impacted your sales if this is the case. And if everyone was buying from online, what good would not stocking JACO do? Everyone would just buy online. My feeling is that if you sell our tires at a fair price (not crazy low), your customers will be content to not have to pay shipping and go through the extra effort of buying mail order. I don't think selling a product at a reasonable price makes you look greedy. I'm sure your customers have seen this and applaud your efforts to protect your interests.
Jack all I have to say is this, there are no other examples of similar "lost leaders" I can find anywhere. The other products without exception, tires, motors, etc... are at prices I can at least compete with. For some reason only Jaco tires come in way under any reasonable markup. I was told on the phone (with Jaco) by someone that the mail order houses were buying direct. This means they are getting better prices than we can get at Horizion, or any other similar dist. If you are going to go this route then offer the same deals to us all. Otherwise you can enforce a MAP others do. Do what you want and I'll do what I have to.

P.S. Lots of supporting calls from other Distributers and competitors yesterday. Apparently I'm not the only one this rubs wrong.
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Old 11-15-2007, 12:11 PM   #309
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A good comparison would be if GM decided to sell cars to a few specific dealerships in the Country at a different rate. What do you think would happen.
your joking right, not all car dealers pay the same price for the same car. that is a fact. not all gas stations in a five mile radius of the tank farm pay the same price for gas, toyota sells or was selling the prisus for 20 grand even thou they claim it costs 30 grand to make, thats dumping and there are laws against it, but it is happening.
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Old 11-15-2007, 01:38 PM   #310
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Is the $9.99 price from Kwik the issue here? I some how doubt they are making any money just selling rims at that price. It has been said before the price is to draw customers in not only to buy the rims but more importantly other items. I don't think they were given a price break in order to sell them at that price. If you don't like buying from your supplier can't you buy from a distributor? What do I know tho
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Old 11-15-2007, 01:56 PM   #311
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Originally Posted by FOXY923 View Post
Is the $9.99 price from Kwik the issue here? I some how doubt they are making any money just selling rims at that price. It has been said before the price is to draw customers in not only to buy the rims but more importantly other items. I don't think they were given a price break in order to sell them at that price. If you don't like buying from your supplier can't you buy from a distributor? What do I know tho

Apparently you don't know enough. What he's saying is that Jaco is selling direct to some MAP people, and he can't compete with the prices. The MAP stores are selling them cheaper than what he can get them from the distributor....so do some research next time. Then post there bud.
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Old 11-15-2007, 02:00 PM   #312
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I can say positively one of our local club racers has bought many Jaco tires from you Nick because of the price you are offering. That has taken money directly out of the track's pockets, a track that is barely keeping afloat as it is.

I was hoping the racer would realize that if he didn't buy them local he wouldn't have a track to run these tires on period, guess that's a hard concept to grasp. There have been 4 tracks close in this area in the past 2 years, now there is only ONE on-road track left.

The bottom line is you are promoting the product, more people are running Jaco tires, and your name is getting out there, but at what cost to the local tracks? In the end the local tracks are what keep this hobby going, not online retailers selling tires for $2 over cost.
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Old 11-15-2007, 02:08 PM   #313
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We have decided to go ahead and end our current $9.95/pr promotion on November 21, 2007. At that point our pricing will return to the normal $12.95/pr with a discount of $1.00/pr on 3 or more of the same item.

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Old 11-15-2007, 02:31 PM   #314
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I can say positively one of our local club racers has bought many Jaco tires from you Nick because of the price you are offering. That has taken money directly out of the track's pockets, a track that is barely keeping afloat as it is.

I was hoping the racer would realize that if he didn't buy them local he wouldn't have a track to run these tires on period, guess that's a hard concept to grasp. There have been 4 tracks close in this area in the past 2 years, now there is only ONE on-road track left.

The bottom line is you are promoting the product, more people are running Jaco tires, and your name is getting out there, but at what cost to the local tracks? In the end the local tracks are what keep this hobby going, not online retailers selling tires for $2 over cost.
Hi Anthony,

I have replied to your comments above and for the sake of not hijacking this thread any further I have started a new thread in our company forum area. I would like to welcome anyone who wishes to continue the discussion on pricing to do so in this area so we can keep this space focused on the Jaco product and allow Jack the opportunity to address his customers.

http://rctech.net/forum/showthread.php?t=191011

Thanks,
Nick
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Old 11-15-2007, 05:46 PM   #315
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i support my lhs and also team kwik , i understand where you are coming from ,trying to keep up with track overhead but you are only looking just at the new jaco tire price issue, that in reality is not just one company doing this , there are many other things in this business that you could still make money from like parts , motors , batteries , kits etc etc..... why pick on this chance to get a great product at a great price for once and if the fact is that if you are marking up your price close to suggested retail price WELL , now thats a different story , $9.95 vs. 18.95 or even 20.00 for a set of tire , you do the math, now if the mark up on of set of tires at a hobby shop is close to this offers from mail companies , racers would BUY THEM just because they dont want to wait plus pay shipping charges , now lets say your cost is $10.00 a set and your price is 14.95 i'm pretty damn sure that racers will BUY them from the hobby and even that you may loose some profit you still moving the product and THATS THE BOTTOM LINE CAUSE STONE COLD SAID SO................................................ ..................
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