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Old 2011.12.29, 11:38 AM   #1
kyoshosan
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Economics of RC shops, markets, online sales

Hi Guys!

Not wanting to add to the off-topic discussion, maybe we should open a thread to discuss this, but I love this topic. I wonder if sales for the Mini-Z Buggy are disappointing in the US or all over ? I often buy my Mini-Z stuff out of HK and Japan because it is cheaper, even w/ shipping costs included, than buying from my favorite stores in the US. Could that be a major factor that is hurting sales in the US? Let me know what you guys think.

Mini-Z Buggy from an online store in HK:

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Old 2011.12.29, 12:01 PM   #2
arch2b
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does purchasing from HK hurt domestic shops, absolutely. some of the old timers here like myself will recall the ancient debates that raged about buying online vs. brick and mortar. the general argument is still the same, the details have just changed. the old time stores refused online sales and as a result, most simply aren't here anymore. you either adapt or get eaten. now, with a global economy (more so now than 10 years ago) your debate is domestic shop with markup to remain profitable or more direct asian shops with less markup and pay for shipping. it's pretty clear that hurts domestic shops which are forced to pay higher prices for the same goods (they pay for the shipping too).
we all know the economic reality in which we live though, being you either buy at the price you can afford or not at all, which means some sales are going to go foreign. to think otherwise is ignoring the truth and you cannot fault those needing to do so. all the rhetoric in the world isn't going to change the financial facts for them (you used to get a lot of beating of breat, patriotic name calling, etc.). for many, they simply wouldn't be able to shop unless they bought at the cheapest price they can. just the way it is. we know the domestic market is tough and truth is, not every shop will survive. simple economics. everyone wants to hold on for the rebound and hope they can make it. the shop here is good, i'm sure kenon has enough local support alone to keep it doing well. yes, they notice when sales continue to go foreign vs. domestic but in reality, all you can do is continue to serve your market at the right balance of making a profit to continue and providing a fair market price. it's a tight rope to walk these days and i think all the domestic shops do a good job at keeping a steady market price, even delaying manuf. mark ups as much as possible when they can.

there are VERY good discussions on this already and when the time is available, a moderator will move these replies to the appropriate thread. lets please not go back to the rhetoric of the past though. some were not always respectful in their replies. you can disagree without insulting someone else.
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Old 2011.12.29, 12:57 PM   #3
SaiTam
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When I was in HK I paid a "premium" for a Losi vehicle and I had shipped LOSI kits out from USA to HK because prices were lower. I think both sides are even.

The rents in HK or Japan(warehouse or storefront) are comparable or even higher than NYC which is not cheap at all. Wages are not low in these countries either. Canadians often pay 15% or more in sales tax so it makes sense to do online ordering; not sure if customs add tariffs to the packages though.

The bonus with buying from your local stores is that it comes with warranty; which may or may not be important to some people.
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Old 2011.12.29, 01:01 PM   #4
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yeah, the canucks get hammered. it's not cheap to ship anything their and they pay taxes on everything they get shipped as well. kinda taking it from both ends

weird how sometimes it becomes cheaper to import FROM the u.s.
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Old 2011.12.29, 01:10 PM   #5
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Don't be surprised! European cars are much cheaper in USA than Europe; a Chinese made Iphone costs a lot more in China than in the US. People export back the above goods back to where they were made and still make profits.

Does anyone know how much the Moto Racer would cost?
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Old 2011.12.29, 01:12 PM   #6
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i have an east german co-worker who's told me many of the stories where it's often cheaper to import from the u.s., cheaper to buy a mercedes in the u.s. than germany... stuff like that. the issue works both ways at times.
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Old 2011.12.29, 07:51 PM   #7
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Quote:
Originally Posted by SaiTam View Post
Does anyone know how much the Moto Racer would cost?
I say somewhere that it would cost $199.00
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