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Old 02-11-2008, 08:27 PM   #1
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Default Could This Help Save Your Local Track and Racing in General?

Recently while looking through some older threads, I read something that I found quite interesting. The thread was about tires. However, it had been sidetracked to focusing on the price of tires. More specifically the price of tires a on-line place selling for versus what the local guys could sell for.

Anyway, someone had mentioned a "concept" I thought deserved further review. So I ask you;

Should manufactures and distributors be selling (Race Related Products) to Tracks (Hobby Shops with Tracks) at steeper discounts than to non race promoting Shops (eps on-line). This could be considered as an insentive to the Track-Operating Shops to keep racing going.

Sure I may have a Bias or two on the subject, but I still feel this should be looked at as an option to help secure the future of the racing side of our hobby.
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Old 02-11-2008, 09:05 PM   #2
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That is a pretty cool idea.

Ive gotten to where I buy all my new products at my LHS/track, unless he cannot get it. I could save money buying online, not much but hey I realize I have to have somewhere to race and it costs more than my entry fee to keep it going.
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Old 02-12-2008, 08:15 AM   #3
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Yeah I think so. I know that many people would be against this (mainly those who dont opperate a track). However, it seems to me that racers and distributors would be all for it because without a healthy crop of legit tracks there would be no demand for race based products which would kill that segement of the hobby an in the end leave racers looking for something else to do.
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Old 02-12-2008, 08:37 AM   #4
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I believe that most of the manufacturers and or distributors don't really give a rats about the LHS. I emailed Tower/Great Planes a couple of years ago about this. When they give a coupon online, you can usually buy something for less than the LHS pays for it. I never got a reply.
The other side of it is just free enterprise. I'm sure if some shop is selling tires at roughly half price, they are not making much if any profit on them. There isn't that much profit in this stuff, you know. They are attracting people to their website, though.
Just my 2cents.
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Old 02-12-2008, 08:47 AM   #5
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Distributors should not be online hobby shops. This a big part of the problem because they get the wholesale product much cheaper than what they sell to a hobby shop.

The distributor/online stores have an unfair advantage in the marketplace IMO.
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Old 02-12-2008, 09:09 AM   #6
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Distributors should not be online hobby shops. This a big part of the problem because they get the wholesale product much cheaper than what they sell to a hobby shop.

The distributor/online stores have an unfair advantage in the marketplace IMO.

I AGREE!!!
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Old 02-12-2008, 09:17 AM   #7
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It would be a great idea exept for the fact that some of the "Distributors" are also online stores. They probably won't go with this idea as it will hurt their own bottom line. It is sad but true and they have the little guy by the short and curlies...
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Old 02-12-2008, 10:35 AM   #8
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It is my understanding that distributors even though they offer online sales they charge full suggested retail. This is so that their dealers can charge less to encourage local hobby shop purchases. This kind of thing should already be managed between dealers and hobby shops. If you were a dealer, would you want to do buisness with the distributor you get stock from who competes with you at a lower price point? I don't think so. I'm guessing but there might even be laws on the books for this.

I guess the real debate here is the differance between a brick and mortor hobby shops that support a track or have tracks and online retailers. Maybe what your saying is that distributors should discrimiate against to this kind of activity. In the end, a distributor ultimately chooses who and how to conduct their business, and they ultimately rely on tracks to facilitate their product demand.
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Old 02-12-2008, 11:08 AM   #9
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It is my understanding that distributors even though they offer online sales they charge full suggested retail. This is so that their dealers can charge less to encourage local hobby shop purchases. This kind of thing should already be managed between dealers and hobby shops. If you were a dealer, would you want to do buisness with the distributor you get stock from who competes with you at a lower price point? I don't think so. I'm guessing but there might even be laws on the books for this.

I guess the real debate here is the differance between a brick and mortor hobby shops that support a track or have tracks and online retailers. Maybe what your saying is that distributors should discrimiate against to this kind of activity. In the end, a distributor ultimately chooses who and how to conduct their business, and they ultimately rely on tracks to facilitate their product demand.
This isn't really true. The price Tower has on many parts is less than the manufacturer tag. My LHS sells for the tagged price. Associated parts, for instance, have the price from the manufacturer on the tag.

The dealers probably don't want to compete with the distributor, but they don't have a choice. They can't buy direct from Losi, Associated or most any of the manufacturers.

Everybody needs to make their cut on a product. Of all the profit made on an item, the sale from the distributor to the LHS probably has the lowest margin. The final sale to the consumer has the largest margin. That's why all the distributors have retail online stores.
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Old 02-12-2008, 11:33 AM   #10
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This isn't really true. The price Tower has on many parts is less than the manufacturer tag. My LHS sells for the tagged price. Associated parts, for instance, have the price from the manufacturer on the tag.

The dealers probably don't want to compete with the distributor, but they don't have a choice. They can't buy direct from Losi, Associated or most any of the manufacturers.

Everybody needs to make their cut on a product. Of all the profit made on an item, the sale from the distributor to the LHS probably has the lowest margin. The final sale to the consumer has the largest margin. That's why all the distributors have retail online stores.
to me, that's exactly the problem with distributors having online retail shops. (Great plains = tower hobbies)

with tower selling to the public, they make more on the same part as the hobby shop does..so naturally, they (tower) can offer that part at a lower cost that the hobbyshops can't even match without breaking even. THEN, on top of that, tower's "super saver" club cuts into the hobbyshop margin even more so by offering this club at say...15bucks for the year. once a member, I think you get free shipping on all your orders, on top of the coupons that tower sends out. I just got one the other day that said..get $25.00 off any purchase of $100 or more.

well, if I buy a radio or servo for example at $105...get 25 off..and free shipping AND don't have to pay tax if I'm an out of state resident of Tower, the hobbyshops can't touch it. THAT is a very unfair advantage. Our LHS said they complained about this and GP told them "if you sell in larger quantities, you can get bigger discounts" well going by that logic, the LHS can never match the discounts that GP has. for every 1 item they sell to my LHS that's exponentially rased by how many places GP sends to other LHS's. Crazy and unfair I think.
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Old 02-12-2008, 11:44 AM   #11
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IF you are a true racer and you are truly interested in the future of our hobby, You should be buying 99% of your stuff at you local hobby shop. In addition, you should try to bring sombody new to your track and show them what a good sport/ hobby we share.
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Old 02-12-2008, 11:58 AM   #12
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IF you are a true racer and you are truly interested in the future of our hobby, You should be buying 99% of your stuff at you local hobby shop. In addition, you should try to bring sombody new to your track and show them what a good sport/ hobby we share.

This is a good point, but if everyone could afford to do that there would be no need for the for sale/trade forums here. Most of the cars I'm using now were seccond hand when I got them.
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Old 02-12-2008, 12:08 PM   #13
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IF you are a true racer and you are truly interested in the future of our hobby, You should be buying 99% of your stuff at you local hobby shop. In addition, you should try to bring sombody new to your track and show them what a good sport/ hobby we share.
From your lips (or keyboard) to their ears. The problem is..their prices are so MUCH lower when they do the coupon thing, that it's hard to justfiy paying retail when it can be had for a LOT less. I'm not takling about getting beat out on an item for $2.00 or soemething..I'm talking about 25%. Depending on the product... there may not even be 25% in there before taking a loss on an item.
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Old 02-12-2008, 12:32 PM   #14
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Default 25%?

I agree that it may be hard to pass up but is Tower hobby going to put in a track at you location when yours goes out of business? I don't think so.
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Old 02-12-2008, 12:40 PM   #15
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Less then 15% of the model hobby world races their vehicles. If you want to make money off of racers then offer dirt cheap ways to enter the hobby. Once people are into the hobby they will keep coming back for that fuel, tires, broken parts, bearings, & all the other items they need to keep their cars maintained. When you get those 40 people to start showing up for race night because you helped them to make good decisions on an initial investment so they aren't frustrated w/ their purchase. You will make that $15 off a race entry, then you will make that $5 in tires & spares bump up off these people as well. When you bring in that $20*40people income once a week that should be enough to pay your bills & loan( about $3200 a week). Then, when you have people who aren't in the know looking for a basher you can make your profit off of the rtrs since they probly won't break alot of parts. Also, the faster the cars are going the wider the onlookers eyes get & the thinner the racers wallet gets.
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