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Old 07-01-2008, 11:07 AM   #46
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I work with a guy who's wife works at Horizon. The word is they (China) will discontinue production until after the Olympics. She said they (Horizon) will only receive 60% or so of their latest order.

This whole situation sucks!
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Old 07-03-2008, 11:37 AM   #47
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True enough the myth of price gouging is confirmed. One local track is selling Byrons 25/9 at $26, and the other is $39.
Brian, I'm not real sure what you are saying. In the first sentence, you state that gouging is a myth, in the second, you seem to imply that one of you local sources is in fact gouging!
I suspect that the lower priced source got the fuel before the increase and has not gotten around to raising the price to the new level. The other does seem a bit high, but not necessarilly gouging. Everyones overhead is a bit different.
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Old 07-03-2008, 02:17 PM   #48
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Brian, I'm not real sure what you are saying. In the first sentence, you state that gouging is a myth, in the second, you seem to imply that one of you local sources is in fact gouging!
I suspect that the lower priced source got the fuel before the increase and has not gotten around to raising the price to the new level. The other does seem a bit high, but not necessarilly gouging. Everyones overhead is a bit different.
Believe me, this is gouging for sure. This shop is well known for over charging people and the best part is that their shop is a tax write off for another business and the manager doesn't fully understand the owners intentions.

amain is still selling byrons 30% for $25 if you can pick it up.. what a deal, but I'm sure they probably had 100 cases. too bad it is $35/gallon and $40 to ship a case of 4 from them.

Tommy at Rocket Science said that the nitro cost shouldn't really affect anybody that can buy a container of nitro ($20k worth and supposedly easy to get) which would be a few of the majors but if you can't get a container then apparently you can't get any. He doesn't think he will have any for months.
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Old 07-04-2008, 10:00 AM   #49
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Brian, I guess it's a matter of how one defines price gouging. To me, it would infer that a retailer was taking an unfair advantage of a situation, to make an inordinate profit. $39 for a gallon of Byrons (was it 25%?) is a bit high, but does not represent a 'high' profit margin. Most of us (retailers) bite the bullet and offer nitro fuel at lower than normal profit margins to try and help out the racers as much as possible. My current price for Byrons 30% is $35. That is higher than some and lower than others. A-mains price is below current dealer cost.... Obviously, that won't last for long.
I wouldn't call your example gouging, unless the seller was making very high profit margins & was the only source for the product. He is simply charging a bit more than others, and one can allways buy from a different store. If his store is a write-off as you suggested, I would expect LOWER than normal margins, to insure a loss! Curious....
btw, price of nitromethane DOUBLED to the fuel mixers! That is straight from Byrons, and I have no reason to doubt their honesty.
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Old 07-07-2008, 04:43 PM   #50
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I hate to go back to this, but it bothers me and should bother all of you and hopefully make you think a bit.

Price gouging has been confirmed, the manager of said shop was caught bragging to the owner of another local shop that he stocked up before the prices went up. Yet fuel was $39/gallon for 25% when I saw it. The owner of the other store is more in line with your pricing at around $32 up from $26 (his gallons of byrons shipped on 6/18/08)

The hobby industry needs to take lower margins on the expendable items (fuel, tires, brushes, stuff like that that sells in high amounts) to attract people from the online stores, fuel is about the ONLY thing people still purchase at the shops because they have too. They could buy in quarts, or deal with hazmat.. but they buy locally.
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Old 07-07-2008, 06:14 PM   #51
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Brian, I agree he is over-charging a bit. But, you have the other guy you can buy from!
I like how you think that they should drop the margin on one of the few things you buy from them.
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Old 07-07-2008, 07:42 PM   #52
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I agree his prices are high and I would definitely deal with the other guy But price gouging or not none of these hobby shops are making much money.
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Old 07-08-2008, 10:38 AM   #53
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In Angus ( Dow Chemical ) doesn't start developing nitromethane then the only place the USA fuel chemicals will be ableto get their nitro from will be China (after the olympics of course). This then will automatically cost the fuel companies more money to bring in the nitromethane and the that cost will be reflected in the retail pricing. This of course is through no fault of the fuel companies here but the situation they are caught within. The only relief would be either Angus or someone else will produce Nitromethane here in the states. I haven't heard of anyone on the horizon as yet but hope this will change in the future.

I will say this, due to the prices being changed, overseas fuel companies will be able to make an entrance into the USA market. Of course the dollar problem still exist, however that may be the only bright spot in this present situation.
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Old 07-08-2008, 10:52 AM   #54
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Quote:
Originally Posted by Brian Bosley View Post
I hate to go back to this, but it bothers me and should bother all of you and hopefully make you think a bit.

Price gouging has been confirmed, the manager of said shop was caught bragging to the owner of another local shop that he stocked up before the prices went up. Yet fuel was $39/gallon for 25% when I saw it. The owner of the other store is more in line with your pricing at around $32 up from $26 (his gallons of byrons shipped on 6/18/08)

The hobby industry needs to take lower margins on the expendable items (fuel, tires, brushes, stuff like that that sells in high amounts) to attract people from the online stores, fuel is about the ONLY thing people still purchase at the shops because they have too. They could buy in quarts, or deal with hazmat.. but they buy locally.
I feel for you relative to any price gouging, but in an industry in which there are so limited and marginal price increases from the wholesaler to the store/dealer level shops are forced to cut a lot of corners and make every penny they can.

Here again, relative to "lower margins on the expendable items (fuel, tires, brushes, stuff like that that sells in high amounts) -- local hobby shops are caught in a bit of a Catch 22. They are forced to compete with online retailers, yet their expenses are higher and their sales fewer. My suggestion is for you to have a little backroom visit with your lhs owner and find out just what his profit margin is on items, and you'll shocked to find he doens't make squat on car kits and his mark-up on "expendable items" isn't what you expect it would or even in line with other retail industries (walmart has a higher mark-up).
In the bigger picture, anyone that purchases online or questions the prices their lhs charges are just marching themselves down the path to having to buy everything online - no looking, no touching, no fondling, no feeling, no checking it out beforehand - and then when you're needing that set of tires on Wednesday for the race on Saturday you'll be paying the overnight shipping cost in addition to the supposed savings you got shopping online.
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Old 07-08-2008, 11:16 AM   #55
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I feel for you relative to any price gouging, but in an industry in which there are so limited and marginal price increases from the wholesaler to the store/dealer level shops are forced to cut a lot of corners and make every penny they can.

Here again, relative to "lower margins on the expendable items (fuel, tires, brushes, stuff like that that sells in high amounts) -- local hobby shops are caught in a bit of a Catch 22. They are forced to compete with online retailers, yet their expenses are higher and their sales fewer. My suggestion is for you to have a little backroom visit with your lhs owner and find out just what his profit margin is on items, and you'll shocked to find he doens't make squat on car kits and his mark-up on "expendable items" isn't what you expect it would or even in line with other retail industries (walmart has a higher mark-up).
In the bigger picture, anyone that purchases online or questions the prices their lhs charges are just marching themselves down the path to having to buy everything online - no looking, no touching, no fondling, no feeling, no checking it out beforehand - and then when you're needing that set of tires on Wednesday for the race on Saturday you'll be paying the overnight shipping cost in addition to the supposed savings you got shopping online.
You got it correct. People come in, and complain about how high the cost is, on a new 1/8 scale nitro buggy kit. We only make about $30 on the kit, planning on making up the money lost, on fuel, tires, and bodies, and engines.

Think about it this way. Building cost $5k a month, electric, internet, phone, taxes, and employee's, add another $4K. Where do we make that money to pay for the help? Then you all complain about the lack of experienced help at the LHS. But if you guys don't want to support that LHS, don't complain when they shut down the race tracks.

We don't make crap on R/C's. We make better money on selling models, and paint, then a Revo.
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Old 07-08-2008, 12:29 PM   #56
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Kit's are the worst example possible, I know what shops pay for everything and where they make their money and racers have little to do with it. Too many shops would rather see 100% margin on the most purchased items even if it prices them out of the online market than to sell the expendables lower/more often and take the 100% markup that they make on parts and non big ticket items by keeping the local buyer local because of that touch and feel part where they will buy a gallon of fuel and then find some body clips, some glow plugs and maybe $15 worth of extra stuff but that extra stuff wouldn't have sold without the original gallon.. most guys would just go online to get the $15 worth of stuff at $10, but then buy $50 more because they feel like they need to cover shipping and the big online places are extremely well stocked and browsing is too tempting for most buyers.

To get back to fuel, you can still mail order quarts if anybody wants to start selling bulk quart cases that would equal gallon prices without hazmat then online shopping could become more popular here as well.
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Old 07-08-2008, 12:43 PM   #57
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The quickest way to make a million dollars in running a LHS...is to invest two million into it.

A friend (and previous owner) told me that once and I had to laugh. There's not much margins in RC...so LHS do what they can to make money.
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Old 07-08-2008, 12:45 PM   #58
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Yes you heard right we got it!!!

Maxy's Pro Racing Fuel has 16% to 30% available right now!!

If you are interested on buying the best fuel in town please visit us http://www.maxysfuel.com/online_store.php

if you have any questions please do not hesitate on giving us a call I will be more than happy to help you

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Recd. my order yesterday. Fast shipping great price!!!
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Old 07-17-2008, 07:56 AM   #59
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I've been importing from china for 12 years and certain tme of the year the villagers(workers) back home and production at plants stop,and with the flood,earthquake and olympics all play in production so don't put away your nitro beast just yet,and yes some manufactures use this to raise prices sad but a good way to make more money,and yes that's why I buy outside of the US,and lil Bush don't help I have to do that to make it and stay open sorry it is time for change from a long time union worker with little chioce to make itPS I exspect a lot of fall out from this but I'm not in the oil circle!

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