How Will a Bad Economy Impact the RC Business???
01-25-2008, 08:58 PM
#1
How Will a Bad Economy Impact the RC Business???
Hey everybody....
Will all this talk of oil staying around $100 a barrel, world markets going up & down and a looming recession in the U.S.... how do you think this will impact the RC business?
Will we see smaller RC companies go out of business?
Will local hobby shops finally reach the breaking point if the business is not there?
Will big companies tighten their belts and release less new models?
How much will prices on RC merchandise rise?
Do you plan on spending more or less on RC this year than in the past?
Hmmmmm.... only time will tell....
Lend me your thoughts armchair economists!
Will all this talk of oil staying around $100 a barrel, world markets going up & down and a looming recession in the U.S.... how do you think this will impact the RC business?
Will we see smaller RC companies go out of business?
Will local hobby shops finally reach the breaking point if the business is not there?
Will big companies tighten their belts and release less new models?
How much will prices on RC merchandise rise?
Do you plan on spending more or less on RC this year than in the past?
Hmmmmm.... only time will tell....
Lend me your thoughts armchair economists!
01-25-2008, 09:03 PM
#3
Tech Regular
hell, I spend more on RC and less on my real car race activities
01-25-2008, 09:06 PM
#4
why do you think offroad is getting big again,its glorified mini racing,cheap,and setup a breeze.
01-25-2008, 09:12 PM
#5
so far sales in 08 has been great at my hobby shop....
we all have to make sure and go the extra mile helping others as much as possible and spending as much as we can and we should be ok...
we all have to make sure and go the extra mile helping others as much as possible and spending as much as we can and we should be ok...
01-26-2008, 07:32 AM
#7
Hobby Economics 101:
All spending on hobbies is discretionary spending. You do not need the latest and greatest new toy to live. Note: Some will argue this saying they cannot live without RC racing. This is purely an emotional response and is more of a medical condition than an economic reality.
Therefore a truly bad economy will have an immediate impact on the hobby industry.
However, as noted by some here, most hobby shops are still doing reasonably well. So one must consider that all of the recent scare tactics from the mainstream media may be a bunch of BS.
All spending on hobbies is discretionary spending. You do not need the latest and greatest new toy to live. Note: Some will argue this saying they cannot live without RC racing. This is purely an emotional response and is more of a medical condition than an economic reality.
Therefore a truly bad economy will have an immediate impact on the hobby industry.
However, as noted by some here, most hobby shops are still doing reasonably well. So one must consider that all of the recent scare tactics from the mainstream media may be a bunch of BS.
01-26-2008, 07:35 AM
#8
Its going to hurt sales likely. Also, places with higher race fees are going to suffer as people look to save a few bucks. 2 programs here $7 and $16 race fees. The $7 track seems to be growing at a faster rate. Id prefer to race at the $16 track more but it just gets to be too much.
01-26-2008, 07:35 AM
#9
Obviously people will have less money to spend if thier home has just been taken from them, sooooo........
We'll see less people in the hobby. not as many newcomers, and those that are barely in the hobby will have to let it go.
Gas prices will effect shipping costs, and costs of plastics. Yes, a rise in cost will occur.
Companies might have less buisness, and the LHS's that are barely surviving will die. The best thing to do is, BUY from the LHS's. SAY NO TO TOWER!!!
Although, this may also be viewed as a good time to buy used cars. people will be getting out of R/C, thus a larger than usual selling of them. maybe the more fortunate will buy these, and get in the hobby. Or maybe they can sell the cars to new people. There are many ways to look at it.
Cheers...
We'll see less people in the hobby. not as many newcomers, and those that are barely in the hobby will have to let it go.
Gas prices will effect shipping costs, and costs of plastics. Yes, a rise in cost will occur.
Companies might have less buisness, and the LHS's that are barely surviving will die. The best thing to do is, BUY from the LHS's. SAY NO TO TOWER!!!
Although, this may also be viewed as a good time to buy used cars. people will be getting out of R/C, thus a larger than usual selling of them. maybe the more fortunate will buy these, and get in the hobby. Or maybe they can sell the cars to new people. There are many ways to look at it.
Cheers...
01-26-2008, 10:02 AM
#10
jiml, ignoring it not going to make it go away. I think larger scale interest will diminish with the added cost of the plastics to create and ship. That and trying to cart all that on higher gas prices (and needing larger vehicles). We also might see more kits again for the same reason.
National event interest will diminish and local interest in shops/tracks close to major communities will increase.
Cali is screwed whatever the case.
National event interest will diminish and local interest in shops/tracks close to major communities will increase.
Cali is screwed whatever the case.
01-26-2008, 10:31 AM
#11
Hobby Economics 101:
All spending on hobbies is discretionary spending. You do not need the latest and greatest new toy to live. Note: Some will argue this saying they cannot live without RC racing. This is purely an emotional response and is more of a medical condition than an economic reality.
Therefore a truly bad economy will have an immediate impact on the hobby industry.
However, as noted by some here, most hobby shops are still doing reasonably well. So one must consider that all of the recent scare tactics from the mainstream media may be a bunch of BS.
All spending on hobbies is discretionary spending. You do not need the latest and greatest new toy to live. Note: Some will argue this saying they cannot live without RC racing. This is purely an emotional response and is more of a medical condition than an economic reality.
Therefore a truly bad economy will have an immediate impact on the hobby industry.
However, as noted by some here, most hobby shops are still doing reasonably well. So one must consider that all of the recent scare tactics from the mainstream media may be a bunch of BS.
That last real economic downturn occurred in 2001 but at that years RCHTA trade show the industry demographics showed a 10% growth despite the economy.
This hobby is a way for people to get away from stress. The economy generally has little to no effect in sales. The more stress people are under the more they need to play and blow off steam. As a result there is almost an inverse relationship between the economy and hobby sales.
That said there are other issues occurring in the hobby that are causing a sales down turn. Touring car sales are very poor and all the companies that relied on touring car sales are down big time. That was a huge part of the market.
01-26-2008, 11:09 AM
#12
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
01-26-2008, 11:14 AM
#13
Sorry but in reality it has never worked like this
That last real economic downturn occurred in 2001 but at that years RCHTA trade show the industry demographics showed a 10% growth despite the economy.
This hobby is a way for people to get away from stress. The economy generally has little to no effect in sales. The more stress people are under the more they need to play and blow off steam. As a result there is almost an inverse relationship between the economy and hobby sales.
That said there are other issues occurring in the hobby that are causing a sales down turn. Touring car sales are very poor and all the companies that relied on touring car sales are down big time. That was a huge part of the market.
That last real economic downturn occurred in 2001 but at that years RCHTA trade show the industry demographics showed a 10% growth despite the economy.
This hobby is a way for people to get away from stress. The economy generally has little to no effect in sales. The more stress people are under the more they need to play and blow off steam. As a result there is almost an inverse relationship between the economy and hobby sales.
That said there are other issues occurring in the hobby that are causing a sales down turn. Touring car sales are very poor and all the companies that relied on touring car sales are down big time. That was a huge part of the market.
I know a person who owns a very big hobby shop. I have discussed with him several times what it would take to get into the business. He has tracked his sales for the past 20+ years. His downturns has coincided with the flow of the economy for that entire time. He has shown me his trend analysis and it really is phenominal.
The only time that formula did not work was in fact in 2001 and into 2002, right after 9/11. The economy began slowing down in 2000 and his sales followed suit. The economy took a big hit after the attacks, but hobby sales began to increase. The reason is many people were afraid of travelling and decided to stay home. The money they saved by not travelling was spent on stay at home pasttimes, like RC hobbies.
Touring Car is taking a downturn because of the price of the cars. Again basic economics, the more you charge for something, the fewer people are gonna buy it. (I hope my friends at 360 read this)
01-26-2008, 11:20 AM
#14
Sorry Adrian you're wrong.
I know a person who owns a very big hobby shop. I have discussed with him several times what it would take to get into the business. He has tracked his sales for the past 20+ years. His downturns has coincided with the flow of the economy for that entire time. He has shown me his trend analysis and it really is phenominal.
The only time that formula did not work was in fact in 2001 and into 2002, right after 9/11. The economy began slowing down in 2000 and his sales followed suit. The economy took a big hit after the attacks, but hobby sales began to increase. The reason is many people were afraid of travelling and decided to stay home. The money they saved by not travelling was spent on stay at home pasttimes, like RC hobbies.
Touring Car is taking a downturn because of the price of the cars. Again basic economics, the more you charge for something, the fewer people are gonna buy it. (I hope my friends at 360 read this)
I know a person who owns a very big hobby shop. I have discussed with him several times what it would take to get into the business. He has tracked his sales for the past 20+ years. His downturns has coincided with the flow of the economy for that entire time. He has shown me his trend analysis and it really is phenominal.
The only time that formula did not work was in fact in 2001 and into 2002, right after 9/11. The economy began slowing down in 2000 and his sales followed suit. The economy took a big hit after the attacks, but hobby sales began to increase. The reason is many people were afraid of travelling and decided to stay home. The money they saved by not travelling was spent on stay at home pasttimes, like RC hobbies.
Touring Car is taking a downturn because of the price of the cars. Again basic economics, the more you charge for something, the fewer people are gonna buy it. (I hope my friends at 360 read this)
Yet , 1/8th buggy`s that cost twice as much as a touring car, are flying out the door`s ?
Its not the cost of the ride , its whether its worth the costs ....
