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Old 05-07-2005, 03:01 PM   #46
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i personally think small electrical accesorys are a ripoff have you seen how much motor capacitors actually cost compared to what the rc companys are selling them for
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Old 05-07-2005, 04:56 PM   #47
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Quote:
Originally posted by DerekB

How much profit is in your computer?
Boy is that right...I found out from my cousin who is studying at UCSB who works as an intern at Apple Inc. He basically told me, my 2500 dollar laptop costs Apple 250USD (and that includes all the research and design...ALL the costs spread over each PowerBook sold). Oh, and my iPod costs about 30 dollars...
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Old 05-07-2005, 04:59 PM   #48
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Medicine...most medicines average out to about .12 cents a pill and then cost upwards of 25 bucks a pill...
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Old 05-07-2005, 05:06 PM   #49
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Quote:
Originally posted by losi jon
Medicine...most medicines average out to about .12 cents a pill and then cost upwards of 25 bucks a pill...
Because of the manpower and technology it takes to make that pill. They have to keep their people employed.
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Old 05-07-2005, 05:07 PM   #50
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Originally posted by Greg M
Agreed, if you want to make money, don't sell RC cars
I know, he/she needs to make them, just what I recommended before.
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Old 05-07-2005, 05:13 PM   #51
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profit margins for pharmacuticals are due to the high cost of medical research, not the cost to produce the actual pill

I guess the profit margins for a "factory team" pit towel is due to the scarcity of fine Egyptian cotton....haha lol
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Old 05-07-2005, 05:15 PM   #52
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Quote:
Originally posted by losi jon
if he/she wants to make money in this hobby..the best thing to do would be something else....there's not a lot of money to be had in this business



cuz people always b!tch about the prices...

some guy named Ernie might disagree lol
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Old 05-07-2005, 06:01 PM   #53
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Quote:
Originally posted by ATXPro4
I work at a hobby shop and see the prices that the store pays for transponders, and we pay $80.00 for them, the mark up really isnt that much.
the markup isnt from the shop to the consumer its from amb to the USA... they have gone from 48 bucks 3 years ago when i first got mine.. to over double that now.... thats markup.. i heard from someone who either worked or knew someone who worked for amb, and they said the cost under 20 us dollars to make
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Old 05-07-2005, 08:30 PM   #54
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Let me ask another related question, is a R/C hobby shop a good investment?
Is there an opportunity to establish a third distributor to compete with Hobbico and Horizon?

Having been in different businesses, R/C is a very mature and consolidated business driven by advertising and brand-name.
It is a pleasant surprise to see a lot of loyalty to the LHS, whereas most other mature business have lost all of that with big chains and internet sales. Although in many respects, the big chains are the two distributors that effectively "own" the LHS and control this business.
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Old 05-07-2005, 08:34 PM   #55
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I'd guess hobby shops with attached race tracks tend to make more sales on all those need consumables and spare parts.

Part of the problem is that the two major distributors are also major retailers.
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Old 05-08-2005, 06:56 AM   #56
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Quote:
Originally posted by nimble
Let me ask another related question, is a R/C hobby shop a good investment?
Is there an opportunity to establish a third distributor to compete with Hobbico and Horizon?

Having been in different businesses, R/C is a very mature and consolidated business driven by advertising and brand-name.
It is a pleasant surprise to see a lot of loyalty to the LHS, whereas most other mature business have lost all of that with big chains and internet sales. Although in many respects, the big chains are the two distributors that effectively "own" the LHS and control this business.
Yes, but you'd have to have products that are exclusive to you.

Horizon has Losi, Sportwerks, JR Racing, Dynamite, etc.

Great Planes has (had Kyosho) Futaba, Duratrax, O.S., etc.

You have to grab the brand before they do. Companies dream of getting on board with them.
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Old 05-08-2005, 08:11 AM   #57
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Race entry fees. Same staff, but the more racers on a given night is all profit. Problem is lack of local support from racers, so just keep buying from the internet people. Save that buck, ensure that your local hobby shop can't grow.

Last edited by Scrubb; 05-08-2005 at 08:16 AM.
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Old 05-08-2005, 08:34 AM   #58
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Quote:
Originally posted by Scrubb
Race entry fees. Same staff, but the more racers on a given night is all profit. Problem is lack of local support from racers, so just keep buying from the internet people. Save that buck, ensure that your local hobby shop can't grow.
I don't mind these fees. Specially for good racing. Heck, it's usually cheaper than a round of gulf.
Definitely lubricants.
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Old 05-08-2005, 09:27 AM   #59
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fuel !!

fuel has a huge MARKUP, although sometimes difficult to import..
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