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Pdelcast
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06.18.2008, 01:47 PM

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Originally Posted by lutach View Post
A lot of retail and online places complain that Hobby city sells really low and the main reason is they know how to sell (Also, they are there in Asia and don't have to pay for high shipping ).
No, the reason they sell low is because:

They don't have any real overhead. They don't stock anything. They are paying wages in China ($.45 / hour.) Their shipping is subsidized by the Chinese Government. They are operating on a 10%-12% margin. They don't sell any quality products (just made in Asia stuff.) They don't have any warranty costs -- those are put back on the suppliers.

But the biggest difference is they have zero liability. No lawyer in any other country could touch them for liability, loss of life, etc, because they are shielded by operating out of PRC.
So they are completely able to operate with no regard for quality, safety, etc.
They ship products containing Lead into Europe with impunity (something that would land me a HUGE lawsuit from the EU.)

Etc. etc. etc.


Patrick del Castillo
President, Principle Engineer
Castle Creations
   
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lutach
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06.18.2008, 01:54 PM

Quote:
Originally Posted by Pdelcast View Post
No, the reason they sell low is because:

They don't have any real overhead. They don't stock anything. They are paying wages in China ($.45 / hour.) Their shipping is subsidized by the Chinese Government. They are operating on a 10%-12% margin. They don't sell any quality products (just made in Asia stuff.) They don't have any warranty costs -- those are put back on the suppliers.

But the biggest difference is they have zero liability. No lawyer in any other country could touch them for liability, loss of life, etc, because they are shielded by operating out of PRC.
So they are completely able to operate with no regard for quality, safety, etc.
They ship products containing Lead into Europe with impunity (something that would land me a HUGE lawsuit from the EU.)

Etc. etc. etc.
I basically forgot about all those issues . I take all the fault for my stupidity.

Patrick, if you move the distributors aside for the or a Special HV RC-Monster Edition, would we see some discount? I think $300 is fair, but if we can get it for less, it would be even better. I will basically power all my R/Cs with it. Actually the little ones will have room issues, but I can figure something out . Maybe you can cook up 3 HV RC-Monster Edition. One for 1/8 scale, one for 1/10 scale and one for the little 1/18-1/14 scale. A complete HV line for cars . I could see Schulze in trouble here .
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TexasSP
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06.18.2008, 04:55 PM

Quote:
Originally Posted by Pdelcast View Post
No, the reason they sell low is because:

They don't have any real overhead. They don't stock anything. They are paying wages in China ($.45 / hour.) Their shipping is subsidized by the Chinese Government. They are operating on a 10%-12% margin. They don't sell any quality products (just made in Asia stuff.) They don't have any warranty costs -- those are put back on the suppliers.

But the biggest difference is they have zero liability. No lawyer in any other country could touch them for liability, loss of life, etc, because they are shielded by operating out of PRC.
So they are completely able to operate with no regard for quality, safety, etc.
They ship products containing Lead into Europe with impunity (something that would land me a HUGE lawsuit from the EU.)

Etc. etc. etc.
Not too mention their plants face none of the code requirements we face in the US. Even US companies that own plants in China can't build them like the Chinese do (ISO requirements, HSE requirements and so on). I just went through all of this assisting our plant setup in china.

Heck they had my CNC machines that run @ 240 volts wired to the terminal with 16 and 18 awg wire, no joke.

There is also the fact that the Chinese government requires any foreign company to make a 1.5 million initial investment to open a plant there. However since we built our own machines we fudged the values up to assist us with this.

It goes on and on.


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