RC-Monster Forums - View Single Post - Increasing the value of the motor from Castle?

Thomas Porfert · 05:47 PM

It has everything to do with the price to neodymium. The price has nearly tripled in the past 6 months. A very large percentage of the cost in our motors is in the raw material of neodymium. Companies that make inexpensive motors tend to use much less of the material, so their costs have not increased as dramatically. Rare earth minerals in general have been rising across the board. I would expect everyone's motor prices to increase in the very near future.

Without getting too much into international politics and economics, when a country produces 97% of a particular material in high demand and they cut production by 35%, prices are going to soar; and anyone dependent on that material is going to suffer greatly. We held out as long as we could in raising prices, but it has simply become too much to absorb and a price increase was inevitable. As long as neodymium prices stay high, don't expect prices to come down any time soon. We were priced very competitively compared to other manufacturer's of the same quality, now our prices tend to be more in line with our competitors.

I'm sure when Pat gets back from China, he might be able to provide more details on the issue.

Thomas Porfert
Tech Support
Castle Creations

	(#4)
Thomas Porfert RC-Monster Carbon Fiber Offline Posts: 301 Join Date: Feb 2008	06.24.2011, 05:44 PM It has everything to do with the price to neodymium. The price has nearly tripled in the past 6 months. A very large percentage of the cost in our motors is in the raw material of neodymium. Companies that make inexpensive motors tend to use much less of the material, so their costs have not increased as dramatically. Rare earth minerals in general have been rising across the board. I would expect everyone's motor prices to increase in the very near future. Without getting too much into international politics and economics, when a country produces 97% of a particular material in high demand and they cut production by 35%, prices are going to soar; and anyone dependent on that material is going to suffer greatly. We held out as long as we could in raising prices, but it has simply become too much to absorb and a price increase was inevitable. As long as neodymium prices stay high, don't expect prices to come down any time soon. We were priced very competitively compared to other manufacturer's of the same quality, now our prices tend to be more in line with our competitors. I'm sure when Pat gets back from China, he might be able to provide more details on the issue. Thomas Porfert Tech Support Castle Creations Last edited by Thomas Porfert; 06.24.2011 at 05:47 PM.