Big Cat! NEW Product for Mini Cat Racing!

[Steven Vaccaro]

Nah Im sorry, I understand. I would pay the same price to get it from Jim as I would HC. I see it as supporting a US dealer. Just my opinion. And Anyone, you me or Jim can recieve a damged boat. Thats part of the game. It happens. Im sure if Jim received a bad hull, his supplier would resolve the issue. I cant believe that of all the things he sells now, hes never had a problem w/ one. I know first hand from a member that he has.. and it was settled.

Oh well, all Im saying is, Jim, if you had them, Id get one from you.

Of course they will resolve the issue. "Send it back for a new one." Since it costs about $70 to ship a boat from the USA to China. Now knock off another $70 profit.

[sailr]

I appreciate your vote of confidence but you have to realize that the model boat business is VERY LOW volume regardless of what you might think! We can't live on two or three sales a week. The markup would have to be considerably more than what you mention. Remember, $5 is a decent profit to the Chinese. We can't even unlock our doors for $5 in this country!

Hobbycity has been cut off by the manufacturer but I'm still out. The well has been poisoned on pricing.

Jim, you said you get them at 192? plus 40? 232.00 is what it takes to get it to your door? Thats still cheaper then Hobbycity.???? 219, plus 40 or 65 depending on what way I d want to go. So no, you yourself arent going to get rich off them, but you can deal to people in the states anf for a few pennies less than HC. I know you have to deal w/ all your inventory, and sitting merchandise is like putting cash on the table you cant use, but it sounds as if some sales are out there. I would think a lot of people would rather deal from you than overseas.

[electric]

It seems that hobby city has opted for a low margin very high volume business. I saw an update saying they were shiping a container of merchandise to Germany. Think about how many batteries and other items fit into a 40ft container? Is it possible to operate the same business model here in the U.S.?

You might even draw the comparison of WalMarts model vs local stores. The big issue is it takes a lot of capital ($'s) to run a business like that. They have set themselves up as a Global Supplier.

Just rambling about it. I have actually been wondering how we could set up a similiar model here and have it work? The labor costs should not be to much of an issue since the goods are not manufactured here. The shipping costs...I don't know about.

I work in the Transportation Industry and run an IT group for them so I have spent time overseas as well. Not sure how you make it work here in the U.S. Certainly, you would capture the U.S. market if the price was comparable....

[j.m.]

Certainly, you would capture the U.S. market if the price was comparable....

Because the shipping would be lower.

So, to make the shipping costs lower for the end buyer, they need to be cheaper for the supplier. Buy in bulk, and use the most economical shipping.

Jon

[electric]

Jon,
I agree, I am left wondering whether the Asian companies are getting a better wholesale price because of the volumes and relationships, or whether they are fine with a lower margin. Probably a mix of all of those things...

[j.m.]

And because the manufacturer is right down the street. Shipping cost is a bowl of noodles for the guy with the donkey and cart. :P

[tiqueman]

It seems that hobby city has opted for a low margin very high volume business. I saw an update saying they were shiping a container of merchandise to Germany. Think about how many batteries and other items fit into a 40ft container? Is it possible to operate the same business model here in the U.S.?

You might even draw the comparison of WalMarts model vs local stores. The big issue is it takes a lot of capital ($'s) to run a business like that. They have set themselves up as a Global Supplier.

Just rambling about it. I have actually been wondering how we could set up a similiar model here and have it work? The labor costs should not be to much of an issure since the goods are not manufactured here. The shipping costs...I don't know about.

I work in the Transportation Industry and run an IT group for them so I have spent time overseas as well. Not sure how you make it work here in the U.S. Certainly, you would capture the U.S. market if the price was comparable....

Because the shipping would be lower.

So, to make the shipping costs lower for the end buyer, they need to be cheaper for the supplier. Buy in bulk, and use the most economical shipping.

Jon

I had this exact conversation w/ a fellow member on here yesterday via telephone.

[electric]

Suppose you bought equal volumes at an equal cost from a vendor in Asia.

The asian vendor has to ship bulk to his location and then ship each item overseas.
If you are in the U.S., you would just ship once from overseas (container,very low cost) and then the each's are in the U.S. Logically, you would think the U.S. person would have an advantage at least in this country.

[electric]

but what do I know, I don't run a business like this...just thinking out loud. Back to my job!

[Steven Vaccaro]

Suppose you bought equal volumes at an equal cost from a vendor in Asia.

The asian vendor has to ship bulk to his location and then ship each item overseas.
If you are in the U.S., you would just ship once from overseas (container,very low cost) and then the each's are in the U.S. Logically, you would think the U.S. person would have an advantage at least in this country.

That works on the first shipment. What happens when one item sells quicker than another. You need to restock that one item. Shipping isnt so cheap from that point on.

How many of you have not shipped things back overseas because its a pain in the butt and expensive? Its easier to toss it. That doesn't happen when a company is located in the same country as the end user.

I happen to be in a business that Walmart also operates in. The jewelry business. Walmart isnt selling at a cut throat rate. They have a decent markup on those goods. Other items are all imports. So the costs are low and they sell low. Not a ground breaking business plan. Where they excel is the high mass of items they have. Its a one stop shop from food to eye glasses to tires to clothing. I find that is easier to mention what they dont have...... I have to give that some thought.