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HelicopterMain Discussion › R/C Helicopters Hobby Prices!! Are They Going To Stop Rocketing?
11-29-2005 10:12 PM  12 years agoPost 21
wakeboarder2342

rrVeteran

USA

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i agree with certain aspects of what you said in regards to gasoline, it differs from helis in several ways, first of all for most people buying fuel is not a luxury, you have to buy fuel to get to work the store ect ect. helis are 100% discretionary spending.

i disagree with helis being a monopoly, they at most are an oligopoly being few suppliers with quite a bit of influence on price, the auto makers are the same way.

however the rules of competition and supply and demand still are in control of the price. Look at electronics, if futaba has a servo like the 9252 digital that they sell for 80 dollars, if hitec has a servo that performs the very same with similar specs ect and is priced 50% less then everyone would buy the hitec thus driving the price of the futaba servo down to a lower price.

now the problem is companies like futaba that have for example the 611 gyro that i cannot think of a gyro that is priced alot lower that offers the same performance of teh 611, this means they can keep their price high to recover the costs associated with R/D and patents ect.

The simple solution for those that think the 611 is overpriced is to go start your own company and spend the money on R/D production shipping ect ect and then tell me how bad you want to sell it for $49.99 when people would spend $330.00.

If the shoe was on the other foot im sure everyone would look at the pricing much differntly.

Again if they were loosing money on the 611 or the fury or any other item they woudl lower the price in order to sell more units.

there is a ton of competition in helis, when i purchased my first heli i looked at the century, thunder tiger, tiger 50, ect ect. Just like i look at the ford, chevy, ect ect when buying a car.

the bottom line is the forces of supply and demand are what sets the price for RC heli items, im telling you the guys at thunder tiger, and those that make the tiger50 dont sit down and say "lets both keep our prices high to screw the guys that buy them" they both price based on supply and demand, and as those items shift and change, their prices change along with them.

the invisible hand is all powerful, it always has been and always will be.

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11-29-2005 11:18 PM  12 years agoPost 22
Leif

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USA

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Yup. Like I said, there IS competition in the market for the heli models themselves. It's relatively easy for companies in countries with emerging economies to break into the heli business, as most of these companies invest very little in R/D and are mostly copying existing designs. We've also seen the price of carbon blades come down quite a bit, even though the actual number of manufacturers is still low.

It's the distribution channels that are still pretty heavily controlled, and this is where prices don't follow the normal theories of supply and demand. Also, in the electronics area volume is required to be able to compete. Like I said, it usually evens out eventually, but that can take years.

The 601 may be a "must-have" for competition flying, but certainly the 14MZ or 9ZWC isn't.

Leif

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11-30-2005 12:47 AM  12 years agoPost 23
Helimon

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Washington

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I virtually watched the T-Rex prices climb after its intiall release..
Thats one good reason to look at the Shogun, it's pricing actually fell, The V2 started out at $149.00 and now you can pick them up for $129.00 and still get a discount from Tower Hobby.

I must agree with the folks saying that pricing has actually fallen in the industry, take a look at Helidirect.com. Yes they are manufacturing in China but what isn't anymore?

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11-30-2005 02:02 AM  12 years agoPost 24
Coloradoheli3d

rrApprentice

Colorado USA

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I have posted in this string, and have read aliot of the coments. And all of you have good points. But there only a few of you out there that really get the point, if your in business than your there to make money, its that simple. I'm self emploied and make good money, but I do that at a high risk, yes if you work for someone than you might feel secure, and you might think the owner of your company is very secure. Not true there are alot of thing out there that will bring a business down realy quick. And then it all hits the fan for the owners. It dont matter how much a business dose in a year, I.E. 20,000 or 20,000,000. If the company only makes 5% then its only 5%, were 30% plus is were it needs to be. Do you think it costs Microsoft 69.99 to make a copy of windows to sell on the shelf for 99.99? Nope there are alot of hands in the pot befor it gets to the self and each one takes 30% plus. Just like my business, I add 20% to everything I have to buy to get a product done. So yes the heli manufactures are making money. The people we should be bitching about is companies like Great Planes. They are the only company legaly aloud to import and sell Futaba, plus other manufactures. Well they control all the prices here in the US. They also own Tower Hobbies. So not only do they holesale Futaba, but they also control the retail end as well because, were are you going to buy that 14MZ? Were its cheapest right. Is that your local hobby shop? Maybe! But he makes very little compaired to what Great Planes makes. I have been on both sides of the hobby, retail and Holesale, and let me tell you the distributors and holesaleres is who controls the priceing.

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11-30-2005 02:37 AM  12 years agoPost 25
dkshema

rrMaster

Cedar Rapids, IA

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Here is a perfect recent example...

T-Rex....

I virtually watched the T-Rex prices climb after its intiall release..

Didn't one of the earily ones only cost like $85.. .Now they are close to $200 for the newer ones.
Would you buy the $85 one that had nothing but problems, or the $200 XL that has fixed almost all of the problems the $85 one had?

Dave

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11-30-2005 03:06 AM  12 years agoPost 26
Ace Dude

rrProfessor

USA

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They are the only company legaly aloud to import and sell Futaba, plus other manufactures.
Good points, but I'm not exactly sure this is a law. Yes, they may have an exclusive contract, but that's a business contract between Futaba/Great Planes, not necessarily a law.

What is disappointing is that the exclusive importer is also a reseller. How can any hobby shop compete with the exclusive distributor?

Can you imagine if Ford or GM sold cars directly to consumers bypassing their dealers?

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11-30-2005 03:41 AM  12 years agoPost 27
eSmith

rrVeteran

Edmonton, Alberta, Canada

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Here's an example we all got to see. Remember in the micro heli market only two years ago, the HB Elite, Various fixed pitch like the Cupid, the hornet and piccolo? Remember what they cost? Well in the last year the Blade CP has destroyed that market. A RTF heli with ALL needed accessories included for the cost of a HB Elite airframe?!?

Nothing has been easier for beginners to get into the air with a micro heli. Who's gonna pay for a cupid when the Blade CP is on the shelf? Companies like century should melt down the old FP kits and reuse the plastic to help get the cost of the elite down to somewhere competitive with the e-flight offering. I'm sure the bottom line is telling them this.

When I got into heli's I knew they were gonna cost. But I wanted it bad enough and found the cash to make it all go. I did the standard newbie "bling your first heli with everything anyone would sell you for it." Thing. Now I try to be a little more selective when I spend.

I can tell you the 611 is NOT needed to be competitive with Heli's. Some guy's are getting along just fine with the JR 7000T. Both cost a lot, don't know why I felt I had to point that out...........

I get along fine with two 8103's and if I did upgrade it would be to a 9303. Price is great for this radio.

Heli's cost what thay cost. When something is new, it cost more, after a while it cost less. It's the whole "keeping up with the neghibor" thing that we get so caught up in. Consumerisim drives us, we are a work to spend society. it's just that way.

Some people are frugal and can enjoy this hobby by spending less and others want more and there's someone for every spot in between.

-eSmith.

http://www.edmheli.ca

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11-30-2005 04:08 AM  12 years agoPost 28
jb_turner

rrElite Veteran

USA

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"They are the only company legaly aloud to import and sell Futaba, plus other manufactures."

I do not know about the legal aspect that is mentioned however we do have a choice to purchase from outside of the US.

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11-30-2005 04:25 AM  12 years agoPost 29
Torkroll

rrApprentice

Bakersfield Ca

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Helicoptering has got much cheaper considering inflation and buying cheaper computer radios, and cheap plastic heli's.

Have you seen how much you can spend on a high end gokart or a bicycle?

Anyone who says it's a small world never tried to walk to Zimbabwe.
Jerry

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11-30-2005 01:49 PM  12 years agoPost 30
BARTGALAMBOS

rrVeteran

Huntsville, Alabama! U. S. A.

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The dollar is the problem. It buys 1/2 the amount of gold as it did 5 years ago. It buys 1/2 the amount of silver it did 5 years ago. In select areas across the US it buys a lot less house. It buys less gasoline, less oil, and less lumber.
Most people think exactly opposite: housing went up, gold went up etc. However, it's really the dollar....it's created out of thin air and they're (the Federal Reserve) creating more than ever before in the entire history of the earth. Sorry, but as time tick-tocks, the dollar will continue to buy less........Just my meaningless 2 cents!

Bart

Precious Metal Investor!!!

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11-30-2005 02:34 PM  12 years agoPost 31
Coloradoheli3d

rrApprentice

Colorado USA

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What I am pointing out the the Futaba and Great Planes is that yes there is no law but since there is a contract, that makes it against the law. If you want your warranty, you have to buy it from a dealer that bought it from Great planes ( in th US) or you my not have a warranty from Futaba. If a company imports Futaba products into the US and tries to sell them, Great Planes and Futaba could sue them and by court order bar them from selling in the US due to the contract between Fuatba and Great Planes. Same gose for Horrizon and JR products. And I'm sure there are others out there. But all in all, yes this hobby costs alot of money, and you can buy what ever you can aford, or how much you want to spend. But the big point is are you haveing fun! If your not haveing fun and feel that its just to much money to say in it, then it may be time to leave. Everything costs more now. And I don't look at a pilot any different if they fly a 8303 or 14mz, or a Stratus to a Raptor. I have a 14MZ (actually 2), but dose that make me any better than say a pilot with a 8303 and a Rap 30? No! My thing is I have tried about every type of bird out there and have had the 9z's and 10SX, and now the 14Mz, and yes I spend alot of money on this hobby. But I'm just having lots of fun and thats the hole point or I would do soemthing else.

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11-30-2005 02:51 PM  12 years agoPost 32
pilotError

rrKey Veteran

Long Island, NY

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Prices

I guess I'm a little surprised by this thread.

Not too long ago, there was a big movement to buying "Grey Market" because the prices here were way too high. The Asian markets were getting electronics for about 40 - 50% less than anyone in the US.

Doesn't anyone on this thread remember $120 - $140 for a 9252. The 9202 which was the servo of choice way back when was close to $100. The GY401 used to cost in the $280 range if I remember correctly. A GY601 was close to $390 - $420. A 9ZWC was in the $1400 range without servos.

All this was only about 7 or 8 years ago.

Then online ordering started to happen at places like Cyberheli which had a 9ZWC, Receiver and 4 servos for the same price you could get just the radio here. In a short time (2 years?) the prices in the US fell and now the situation is reversed. You can get most electronics cheaper at Ricks than you can get anywhere overseas.

The trend I do see happening is very expensive Micro's along with all the metal upgrades. It's hard to believe, but my TRex is worth about the same as my Sceadu 50.

I also see companies like Futaba start to make regional settings which I think is the wrong direction. The only reason for doing that is so an importer can start jacking up his prices without fear of competition.

Mike...

Good Judgement comes from Experience. Great Judgement comes from Bad Experience.

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HelicopterMain Discussion › R/C Helicopters Hobby Prices!! Are They Going To Stop Rocketing?
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