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Old 12-21-2004, 09:05 PM   #46
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Default Re: Re: Another AMB Price Increase is it Fair?

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Originally posted by Rick Hohwart
The only fair price is the price you are willing to pay.

Just for reference, and AMB transponder for a full size race car is almost $300.00.


Well then we are paying much more than 1/10th the price.... for race use on a 1/10th scale car.


A cheaper system can definitley be developed.... question is if there really is a big enough market for it.
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Old 12-21-2004, 09:19 PM   #47
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Quote:
Originally posted by gijoe64
So what your saying is if you can't afford the hobby get out?
We have to buy this system! It is not a choice, I race at big events
and it is required. Yes we will pay it, but can you answer my question instead of being a smarta**?
nope not gonna happen.

think about this.
saturday i bought a mf2, 249.00, a 7.1 149.00 a airtronics servo 109.00 airtronics rec 79.00 thats 586.00 minus the motor, batteries, (did you hear the have a new battery of the month again) chargers, radios, this and that and you know the rest. traveling, motels, entry fees, blah blah, so i assume amb figures if we have money for all that we'll have some money for them too. but i do hear where your coming from, no wait, i mean "i feel your pain"
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Old 12-22-2004, 02:02 AM   #48
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Default Re: Another AMB Price Increase is it Fair?

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Originally posted by gijoe64
AMB is raising their prices up 14% or so, I know thier the only game intown, but is there going to be any other company out their going to make these transponders? This would bring the price down and bring a little competition to the market. They raise the price like US stamps, were are they made? Can they be made cheaper? Is their a exclusive patient?
I would like to know why we are spending so much money on this, because in order to attend big races even some local you have to have a personal transponder. Is sombody getting rich on us?
I been askin round looks like thier not the only game in town theres another company with a almost identical system but dont think will work with AMB plus thier pt cost more, guess no exclusive patent then??

Id really like to know WHY they can justify such a big increase (worldwide not just US?) its a ripoff

Clubs buy into AMB and have to pay any price AMB ask for transponders, guess clubs have no choice. If its true handouts are not gonna be made any more we're all HAVE to buy a pt to race thats if we can afford one and we will ALL have no choice

Its ok for those who can afford high prices but its not good for our hobby

Who will join "Against Monopoly Behavior - down with - Ripoff Capitalism" ???
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Old 12-22-2004, 12:52 PM   #49
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Here's a quick explanation of why something like this could happen worldwide, as a result of the weak US dollar as previously mentioned.

Suppose, for a moment, that AMB makes only transponders. Suppose that 50% of their sales (which could actually be a realistic assumption) take place in the USA. Suppose also, for the moment, that their base currency is the Euro, and that last year, 1 US dollar was worth 1 Euro (not true, obviously, but stick with me).

At the end of a fiscal quarter, year, or whatever, any company selling in the US but working in another currency will need to perform an exchange back to their native currency. So, suppose that every month, AMB takes whatever profits (revenue minus operating and manufacturing costs) it gained in the US market, and exchanges them for Euros. Since we're going to say that 50% of their profit comes from the US, we'll further assume that the other 50% stays constant everywhere else.

Now, let's say that this year, the value of the US dollar has dropped against the Euro, such that a single dollar is now worth only 0.80 Euros, or in other words, $1.25 = 1 Euro.

Say that before this happened, AMB made a $10 profit on each transponder it sold.

So for the last period, they sold 100 transponders, and received $10 * 100 = $1000 profit, which translated to 1000 Euros.

Now, they sold the same 100 transponders, and received $10 * 100 = $1000 profit, but with the weak dollar, this translates to only 800 Euros, a 20% decrease.

Since the US market makes up 50% of their revenue in our model, that means that with everything else being equal, their profit has decreased by 10% ONLY because of the weak dollar.

OK, so that explains why prices go up in the US. But why raise prices worldwide?

It is assumed that when you raise the price of an item, the demand will drop by some amount. So if they sold 100 transponders at the old price, they probably assume they will only sell 75 at the new price. So raising the price by itself is probably not enough to increase revenue across the board.

In this case, since the US R/C economy is so large, changes in the dollar probably make a huge fiscal impact on AMB's revenue. To compensate, and maintain the same level of profitability they enjoyed before, they must increase their profit at *all* distribution points. Further, most companies probably have a relatively small profit margin... so that 10-20-whatever percent could actually have a huge negative impact on their business (not saying this is necessarily the case, just a possibility).

Anyway, those are some reasons why the price MAY have gone up. Who knows, they may have incurred some new production cost, or may have just decided to raise prices for the heck of it. The consumer may never know. But the lesson here is that prices going up does not always equate to "company evil."
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Old 12-22-2004, 02:08 PM   #50
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Quote:
Originally posted by wcoyote
So you say the ones for full size cars are $300. Considering the cars we race are usually 1/10 scale that would mean the price should be $30. .
Well the latest full size touring cars probably cost 100k to construct. Does that mean 1/10 scale touring car should be 10K?

Quote:
Originally posted by wcoyote
Since AMB has the monopoly they can chage as much as they can if we will pay for it.
Nobody is forcing tracks to use the AMB system. And don't blame AMB if your track requires the purchase of a personal transponder. Your beef is with the track, not AMB.

Quote:
Originally posted by wcoyote
I can tell you for a fact that there is no way it costs $30 to build one of those systems, including paying the people to assemble them. Especially since I work in the electronics industry, I have some insight on this...
Well if you worked in business you would understand that there is more involved in pricing a product that determining the cost of the raw materials. You have labor, advertising, marketing, research and development, taxes etc. plus some profit for the company.
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Old 12-22-2004, 03:22 PM   #51
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man i'm going to sound like a nerd for saying this, but seeing as i just took an econ final at school last week, i thought i'd share.

US urban consumer price index (whole year adjusted for 2004) from 1/1/00 to current is 12.4%. 1/3/00 exchange rate for the dollar vs. euro was .984, currently it is .746. that is a 24.2% drop.

someone mentioned $56 initial cost, add 12.4% = 62.94. take (.984 / .746) * 62.94 to get the exchange/inflation adjusted total of $83.02.

the 'gouge' factor, perse, would be the yearly % adjusted increase over CPI, which = (1 - (83.02 / 95)) / 4 or 3.15% per year.

as far as the editorial portion of my post goes: good, bad, justified or not.... higher comparitive costs = smaller consumer markets. smaller consumer markets = less racers. all things being equal, anything that kills turnout at the track, i hate to see.
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Old 12-22-2004, 03:29 PM   #52
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Default prices gosh

i wonder wat will be next in a price markup?
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Old 12-22-2004, 03:32 PM   #53
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Default Total rip off

I would be surpised if these things cost $5 to make.


Where I work we have been exploring RFID technology.
RFID tags cost around $1 each, they are about 1 x 2 " and thinner than a playing card.

One nice thing about RFID is that you can store more information on them than just ID number.

You program the little tag stick it on your car an you are set for life, nothing to charge or change.
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Old 12-22-2004, 03:50 PM   #54
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Save your CHRISTmas $$$$$ and buy one. I got mine from All Star on here and since I had bought stuff from Him before I had Points and I used them and My cost was $62.00 shipped brand new. I suggest stop compaining. A new car cost a small fortune and with cost of high end batteries....Sheesh talk about a rip off. Batteries are a bit more complicated but when they sell 60 million units @ $5.00 cell you do the math it is a another example WHAT ARE YOU WILLING TO PAY..Do you know companys spend thousands of dollars just to find the sweet spot on there curve of supply and demand. It is sick. I think if you are gong to race expect high costs. I know it stinks this kind of $$$ pushes kids right out the door and markets just to 15-50 yr olds, just look at the amount of females used in advertising. I have only seen two women get excited about anything R/C so in reality we are just products of our own free market.
I don't like the price hikes either, it means more of my friends can not afford to race and the Hobby will fall back to the way it was before. No one cares about the hobby just there wallets. There are a few exceptions.
END OF RANT.
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Old 12-22-2004, 04:07 PM   #55
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Summing up everyone's arguments: AMB can charge what they want because they can. When you have a monopoly in a market, you can get away with increasing your prices even if your costs to make the products doesn't change. It is called GREED!!! If another company would jump into the market and make a transponder at a cheaper price, you would see AMB back way off their prices. I can guaranty that their cost to produce the PTs have not risen as dramatically as their price increases to the consumer. But, as long as we break down and buy the product without much argument, then AMB will continue to rake us over the coals.
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Old 12-22-2004, 04:19 PM   #56
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One thing to look at is the fact that the rest of our RC products we use to race are down in price, compared to a few years back.

Motors, batteries, kits etc... all of them are cheaper and we don't complain about that at all. So one company is doing what it can to make money. Be thankfull that not everything RC related is going up.

Besides profit is not a dirty word!

Later,
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Old 12-22-2004, 04:37 PM   #57
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Quote:
Originally posted by CRASH
One thing to look at is the fact that the rest of our RC products we use to race are down in price, compared to a few years back.

Motors, batteries, kits etc... all of them are cheaper and we don't complain about that at all. So one company is doing what it can to make money. Be thankfull that not everything RC related is going up.

Besides profit is not a dirty word!

Later,
Think you might have missed the point here dude. I don't think anyone has got a problem with AMB making a profit. it's just the SIZE of profit they appear to be making that seems unfair on the consumer

AMB has to make good money other wise they'll not continue to make the product, which by the way works superbly.But what is precieved to be the cost difference between manufacture and resale pricing seems out of wack ?!
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Old 12-22-2004, 04:45 PM   #58
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Quote:
Originally posted by Merciless
Think you might have missed the point here dude. I don't think anyone has got a problem with AMB making a profit. it's just the SIZE of profit they appear to be making that seems unfair on the consumer

AMB has to make good money other wise they'll not continue to make the product, which by the way works superbly.But what is precieved to be the cost difference between manufacture and resale pricing seems out of wack ?!
Appearances can be deceiving...there are companies with sales in the billions that lose money.
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Old 12-22-2004, 04:53 PM   #59
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Where I work we have to pay $300 plus for full size car transponders and the price on them is going up on them to so it's not just the rc ones going up.Plus another $8,000 for the counter...

Last edited by teammediocre; 12-22-2004 at 05:04 PM.
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Old 12-22-2004, 04:55 PM   #60
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get the chinese to make them then we will see the price drop. there has been price increases in the electronic sector for a few months now. raw materials have gone up so in the end who pays for this? the consumer 14% lets just thank the r/c gods that steel is not a factor, now that industry have seen cost nearly double this past year. to sum things up yes it hurts but business is business and the consumer always pays.
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