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Old 10-10-2008, 01:30 AM   #1
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Default Xray still ok in business wise??

Xray proudly announced for their new expansion of their high end manufacture claimed everything done in house means high cost to me. Now, Dow drop from 14000 to 8000. Housing is down avg 25%. People in USA started living in tent locate in park lot. Ebay had laid off 1000 people. Ebay seller sales drop 30%, AIG almost game over........... I doubt how does the Xray business still be running smoothly?? When you see Hot bodies D8 is only mark at $370. A Taiwanese car price but world champion kit. I highly doubt the sales of expensive rc car. I believe they need to start production again on those like T2R budget price product fast in order to generate more profit to cover their high cost. Otherwise, those Taiwan and China companies will be catch up the quality someday while crash the price on the market. Good luck.
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Old 10-10-2008, 01:42 AM   #2
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Also I want to say is Xray makes the best quality product and sell at high price but the problem is Xray is not like Intel, Porsche, Orcale...... they do not have anything that people can't do. If Asia manufactures want to do at that quality, they can easily do it but they are not aiming for that price range. The situation now is they are starting to improve their quality while maintenance at the low price. Does it mean very soon Xray will not be unique unless it comes out some low end product in order to stay in the business?
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Old 10-10-2008, 02:18 AM   #3
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No matter how bad it gets in the US, I'm 99% sure Xray will have enough sales from Europe and the rest of the world to keep the doors open. Since they are located in the Slovak Republic, the only side I can see that would be effected is RC America.

But I'm with you on the T2R thing. I'd love to see some more FRP chassis alternatives for the budget racer. Hot Bodies did great with the tub chassis Cyclone S and Tamiya with their TA-05. For the money, I challenge you to find a better deal.
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Old 10-10-2008, 02:21 AM   #4
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Regular updates or frequent new cars sways people away from a brand sometimes.

Others will happily race with last years car etc and still feel brand loyal.

The problem with too frequent updates and new cars is that parts production can be smaller - and therefore more difficult to source parts for an older generation car. Shame, as there are some REALLY good older cars out there, but you just can't find the parts for them now.
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Old 10-10-2008, 04:14 AM   #5
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K_Spec_RC: This is no way Xray would have enough sale form European countries only. Their manufacture surely does not expended for European market only. It aims for world wide market and then decide the expansion. So, European countries is not big enough market for Xray manufacture's capacity. A company like Xay doesn't view a certain markets only. They view things worldwide. PLUS, European countries do not look good too. In fact, world wide stock markets has fall 1/2 from the highest last year. CAC drop from 6000 now close to 3000. DAX 8000 now is 4400. It is no way European countries means survivor from this economy crisis. you must not know about there are many biggest banks in European countries having trouble now.

Yes, budget car is only way for company to generate now. High price car like MP9 can't sell many.

Last edited by ioxqq; 10-10-2008 at 04:29 AM.
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Old 10-10-2008, 04:17 AM   #6
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tc3team: Thank for your reply. But I guess you're out of this topic.
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Old 10-10-2008, 04:41 AM   #7
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Sorry, yes my answer was a bit out of context but if you apply it to xray, (who seem to produce a lot of different kits) personally I would like to see them produce less kits with more innovation in them, so they don't have to keep making updates or new cars.

Yes, not always easy to do and every manufacturer is guilty to some extent but would be preferable to many I am guessing

If they keep making too many kits maybe xray sales will not be enough for each kit and people will see the dark side of replacing them too often?

Serpent and Tamiya are quite good in the respect that Serpent, for its S400 brings out upgrades, rather than new cars. And the 416 is only seeing one new version since its release.

It's all happened in a small time scale though, so who knows for sure what the future holds, for any brand.
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Old 10-10-2008, 07:30 AM   #8
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Quote:
Originally Posted by tc3team View Post
Regular updates or frequent new cars sways people away from a brand sometimes.

Others will happily race with last years car etc and still feel brand loyal.

The problem with too frequent updates and new cars is that parts production can be smaller - and therefore more difficult to source parts for an older generation car. Shame, as there are some REALLY good older cars out there, but you just can't find the parts for them now.

I would rather race an older car in my opinion because its proven and the setups are known. I Just switched to tc5 yet I ran the tc3 long. About the Parts, I find associated parts are still fairly easy to find. But thats off topic on xray!. I think xrays are nice.
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Old 10-10-2008, 08:05 AM   #9
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to really strive in RC in general, RC manufacturers need polarized portfolios... a low-price, low-complexity, hi-volume segment as a cash cow, and an aspirational segment as equity/awareness driver.

For the moment, Xray only has the latter, but I don't think it has the same financial goals as say, kyosho or tamiya. The former it had to some extent with the "R" versions which were awesome bang for the buck but kinda fell quickly below the radar screen as soon as the newer version of the luxury-end got released.

Now... the thing we have to keep in mind is that racers buy xrays - not the same customer base as joe schmoe buying a himoto off ebay. Firstly, racing has always been, is, and will remain expensive no matter what. Secondly, in a racing season, the extra cost of getting a high-end touring car a la Cyclone WCE vs. a Cyclone S (to use another example than hudy/xray) is a droplet of water in the racing budget ocean; hence racers will keep buying $400 cars.

conclusion: Xray might see a sales drop due to the economic tougher times, but not that much though. The government tax break / loans issue is more worrying to them now, I think.

sidenote: I do agree Xray is taking more risks by versioning up their products every 9 months than by not releasing a low-end car. They won a lot of customers with their early designs which really upped the game in terms of parts quality/durability but they've alienated these same customers by throwing a new car on the market soon after all the previous ones. To me the two most successful touring cars ever, commercially speaking, are the TC3 and the Cyclone - both of them were basically the same even 3 yrs after their initial release (longer than that for the TC3). This is where scale savings kick in big time.

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Old 10-10-2008, 08:33 AM   #10
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ask yourself, before the US stock market took a dive and the financial houses officially started crumbling where was the grumbling of impending financial doom coming from? overseas. why? because those countries depend on the US markets and consumers, because they can't survive by relying on sales or markets within their own borders. it's a global marketplace we live in, but most importantly we're at the top of the foodchain. and when we stop eating less, so follows the rest of the world. doesn't matter if you're talking rc cars, widgets, or stocks and bonds.
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Old 10-10-2008, 08:46 AM   #11
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You fail to take into account the fact that X-Ray is largely subventioned by the government... And although this subvention is due to come to an end, I doubt it will be if it will mean the death of the company due to the actual economic crisis. Besides it is mainly a financial crisis so far, engineering companies aren't hit as bad. Fact is where I work we are struggling to keep up with the demand and we're supposed to be the worst hit european country (uk).
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Old 10-10-2008, 09:08 AM   #12
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Quote:
Originally Posted by tc3team View Post
Regular updates or frequent new cars sways people away from a brand sometimes.
I agree with this. That's why I had a TC5 earlier this year...Associated always keep their cars around for years and they have good parts support. BUT I gambeld and bought an Xray 008. The car is great BTW. My gamble has paid off due to the fact that Xray has decided not to come out with a new car for the forseable future...at least for another 24 months as has been mentioned in the Xray forum. I have to beielve this is due in part by the global economy and the market dictating that people prefer no having a new car every year. Also the 008 is a good...um "brilliant, phenomenal" car (Edit: for adamge ) and doesn't need major changes.

As to health of Xray...only people close to Xray could know. But with the exchange rates making kits sold in the US price out at over $500 dollars that couldn't be helping their sales any (I bought my 008 used ).
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Old 10-10-2008, 09:20 AM   #13
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Well it seems Xray has already learned it's lesson before all this happened.

From the T2 008 Thread:

Drew Ellis:
"There will be NO new car this year just upgrades and those will noy be put into kits they are just upgrades like mostly lightweight parts and those will be out soon...The current car they are really happy with and the way the market is right now we thought that it would be the wise thing to do so the idea is to run the T2 008 two or more seasons that means 24 months or more before the next car....Thanks Drew"
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Old 10-10-2008, 10:14 AM   #14
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I'm glad I kept my 007 EU, people here are selling T2 parts for half the
price or more now. So keeping your older cars sometimes makes sense
to keep up with the economy here in the States. My thinking is if
your car is still winning in the mains why change? Some people just
wants to keep up with the Jones's!
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Old 10-10-2008, 10:25 AM   #15
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Eh, how the stock markets are doing isn't going to have a huge affect on privately held companies.

Stock markets fluctuate regularly. What really is of importance to any RC company, X-Ray or otherwise is how much operating cash do they have. If they rely on short term loans often, then yes they are in trouble. In fact, most companies are doing just fine if they have sufficient cash to cover operations. The problem arises when they have to ask the bank for a loan to cover payroll, that they then payback before the next payroll check is due.

So to worry about an RC company solely because of the stock issue is a bit simplistic. Honestly, if you are under 40 this stock market downturn is gonna be a big financial boon for you by the time you reach retirement. Remember the mantra, Buy low, sell high. Well if you buy right now... you're buying low. If you're panicking and selling. oops! Anyways, that's another discussion.
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