New RC business.. I need your feedback
06-09-2003, 02:44 PM
#1
Junior Member
Thread Starter
Join Date: Jun 2003
Location: the sky
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
Hi
I am new at this great forum .. and some how new for the RC flying ..
At my area the RC flying is starting to gain popularity.. the problem is that there is no single hobby shop at the city. All flyers get their stuff from aboard or using the net.
Because of that I am planing to open the 1st hobby shop in the country and right now am doing my calculations .. I am planning to start up with selling RTF models, cars and thier accessories and equipments
My question is, how many RTF planes and how many cars (plus their equipments) should I start with ?? 20, 25 .. 1000 each ?
Thank you in advance for your feedback
I am new at this great forum .. and some how new for the RC flying ..
At my area the RC flying is starting to gain popularity.. the problem is that there is no single hobby shop at the city. All flyers get their stuff from aboard or using the net.
Because of that I am planing to open the 1st hobby shop in the country and right now am doing my calculations .. I am planning to start up with selling RTF models, cars and thier accessories and equipments
My question is, how many RTF planes and how many cars (plus their equipments) should I start with ?? 20, 25 .. 1000 each ?
Thank you in advance for your feedback
06-09-2003, 03:12 PM
#2
New RC business.. I need your feedback
I had a friend who managed a very large and well known hobby shop. They made a lot more money on parts than they did on kits. Especially car parts. The margin on kits was much smaller. People are more likely to run to the local shop for some small parts they need now than wait and get them with a large order from Tower or Horizon. I hope everything works out.
06-09-2003, 03:59 PM
#4
Junior Member
Thread Starter
Join Date: Jun 2003
Location: the sky
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
hI
sideshow
you pointed very important point.. I'll look at this direction more closly
but you know at least I should provide number of ARF's and RTF's to get pepole start with flying ..
FLYBOY
lets say between $30,000-$40,000
AB
sideshow
you pointed very important point.. I'll look at this direction more closly
but you know at least I should provide number of ARF's and RTF's to get pepole start with flying ..FLYBOY
lets say between $30,000-$40,000
AB
06-09-2003, 06:28 PM
#5
Member
Join Date: Dec 2001
Location: PUNTA GORDA FL
Posts: 72
Likes: 0
Received 0 Likes
on
0 Posts
RC Business
FIRST contact the MAJOR suppliers and talk about how much credit you can get, and terms...FIND out what is selling in your area. The major suppliers can and will help you, if you'll listen. Follow their advice... Good luck.. Jim
06-09-2003, 06:49 PM
#6
New RC business.. I need your feedback
I would look at a few beginners kits, a few cars, and a lot of parts to compliment RC. Maybe find something to suppliment the RC sales to help keep the cashflow high. You can eat up $40,000 in merchandise in about a 10 X 10 bank of shelving full of stuff. It is amazing how fast it adds up.
Standard discounts were usually about 40% from list, with a discount if you send them a check when you get the bill. Some stuff will be on sale and you can get better pricing on it at times. Kits you will buy usually from a sale flyer from the wholesaler and the prices will be just below what tower sells them for. That part is tough to take, but if you sell a kit, they will be back for everything else. If you try to rip them off, you will not last long.
It is a fun business. Good luck.
Standard discounts were usually about 40% from list, with a discount if you send them a check when you get the bill. Some stuff will be on sale and you can get better pricing on it at times. Kits you will buy usually from a sale flyer from the wholesaler and the prices will be just below what tower sells them for. That part is tough to take, but if you sell a kit, they will be back for everything else. If you try to rip them off, you will not last long.
It is a fun business. Good luck.
06-09-2003, 07:23 PM
#7
Senior Member
Join Date: Feb 2003
Location: Olcott, NY
Posts: 287
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
Last November, with very little funds, I opened a very small hobby shop. Trying to get dealerships with the biggies liket GP and Horizon is very difficult. It's almost like they really don't want new hobby shops to open up.
I've found that to compete with mail-order, I had find a way to offer my newcomer customers a service they couldn't find anywhere else. So, I have someone who is always ready, willing and able to give the public a free hands-on taste of RC flying, for both RC airplanes and helicopters. This way, I don't have to depend on the good graces of local clubs to drum up business for me.
If possible, maybe you should see if you could find someone to do this for your business.
nascarjoe
I've found that to compete with mail-order, I had find a way to offer my newcomer customers a service they couldn't find anywhere else. So, I have someone who is always ready, willing and able to give the public a free hands-on taste of RC flying, for both RC airplanes and helicopters. This way, I don't have to depend on the good graces of local clubs to drum up business for me.
If possible, maybe you should see if you could find someone to do this for your business.
nascarjoe
06-09-2003, 08:30 PM
#8
Senior Member
Join Date: Apr 2003
Location: Barcelona, SPAIN
Posts: 238
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
I agree with nascarjoe. I think oppening a hobby shop is a great idea, but you should think some things first.
You must talk with hobbists, know their needs. For example, what kind of models they bought, what spare pieces they need, what they would appreciate more, what they hate of ordering throught the net or mail (so you do exactly the opposite), etc.
I would start by gathering info both from future customers and dealers, and then buying first-need items such as fuel, props, wheels, rubber bands, wheels, servos, a couple of radios, etc.
If you want to stay on the business, you must do something to make those customers prefer you rather than Tower Hobbies. That must be the human factor: maybe installing a repairing service (you repair someone's elses rc stuff), giving advice and oppinion on anything you're questioned (kist, radios, what servos hould I use for...), offering newbies help, maybe not flying their models, but helping them set them up, and if they ask you something you don't have, just tell them politely you will order it for them. This is what big companies cannot offer. I just hate when you see a newbie entering a shop and loosing his RC ambitions because of a greedy dealer, that thinks he's like Chip Hyde's and C.Youngblood's master, a state-of-art model designer and builder. Newbies are often confused and give up when they see the money it takes to start. Try to listen to them and you'll get customers, so it would be a good idea to put some "RTF Pico Cub pack" with a fair price label on them to make their starting curve smoother. My two cents.
You must talk with hobbists, know their needs. For example, what kind of models they bought, what spare pieces they need, what they would appreciate more, what they hate of ordering throught the net or mail (so you do exactly the opposite), etc.
I would start by gathering info both from future customers and dealers, and then buying first-need items such as fuel, props, wheels, rubber bands, wheels, servos, a couple of radios, etc.
If you want to stay on the business, you must do something to make those customers prefer you rather than Tower Hobbies. That must be the human factor: maybe installing a repairing service (you repair someone's elses rc stuff), giving advice and oppinion on anything you're questioned (kist, radios, what servos hould I use for...), offering newbies help, maybe not flying their models, but helping them set them up, and if they ask you something you don't have, just tell them politely you will order it for them. This is what big companies cannot offer. I just hate when you see a newbie entering a shop and loosing his RC ambitions because of a greedy dealer, that thinks he's like Chip Hyde's and C.Youngblood's master, a state-of-art model designer and builder. Newbies are often confused and give up when they see the money it takes to start. Try to listen to them and you'll get customers, so it would be a good idea to put some "RTF Pico Cub pack" with a fair price label on them to make their starting curve smoother. My two cents.
06-10-2003, 12:30 AM
#9
Senior Member
Join Date: Nov 2002
Location: Sterling , CO
Posts: 6,059
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
If you have a half Mil. or so you do not know what to do with lots of luck. Other wise you have no business running wisth the big boy's
06-10-2003, 01:08 AM
#10
Senior Member
Join Date: Dec 2002
Location: las vegas,
NV
Posts: 428
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
Well since we do not know where you are and as i read your post, you would be the only shop "in country" .. you might have better luck getting the suppliers to help... find out how fast they can ship you items and that way you can figure out how much "stuff" to keep on hand....and find out what the hobbiest are going for (kits, arf's,rtf, rtr(cars),ect.)and that way you can set up you inventory...i say go for it and good luck....it will be hard work...this way you are the big dog in country....
06-10-2003, 01:56 AM
#11
Senior Member
Join Date: Oct 2002
Location: Salmon ArmBritish Columbia, CANADA
Posts: 1,405
Likes: 0
Received 0 Likes
on
0 Posts
New RC business.. I need your feedback
The secret to making a small fortune in the hobby business is to start with a big one...
Only kidding! Have fun, don't get into anything you aren't familiar with, work from your base of knowledge. A fellow in my town started up a hobby business and let some distributor convince him to fill his store with V-Mar kits. He didn't know that nobody in a 200 mile radius would own own one..he'll be giving the things away as raffle prizes some day.
I own a small computer store and I too have to compete with large companies that can offer economies of scale that I cannot match. Remember though, that you have something that they cannot match....service. Maybe try doing something that nobody else does. How about repairs? With all the ARF pilots out there, repair services may be a way to keep the rent paid. These people bought ARFS because they don't have the time/desire to build. For many, a significant bonk is probably a good enough excuse to quit the hobby. Keep them in the hobby and keep them coming back as customers this way. This is a good way to secure sales as well because when said plane/car/boat is in for repairs, you are in a unique position to advise them on upgrades/new products; you also build the trust of your customers which will pay off the next time they want to make a major purchase. Whatever you do, don't try to make a living just moving boxes....the big guys have that down to a fine science...you cannot compete with them at that.
Good luck!
Only kidding! Have fun, don't get into anything you aren't familiar with, work from your base of knowledge. A fellow in my town started up a hobby business and let some distributor convince him to fill his store with V-Mar kits. He didn't know that nobody in a 200 mile radius would own own one..he'll be giving the things away as raffle prizes some day.
I own a small computer store and I too have to compete with large companies that can offer economies of scale that I cannot match. Remember though, that you have something that they cannot match....service. Maybe try doing something that nobody else does. How about repairs? With all the ARF pilots out there, repair services may be a way to keep the rent paid. These people bought ARFS because they don't have the time/desire to build. For many, a significant bonk is probably a good enough excuse to quit the hobby. Keep them in the hobby and keep them coming back as customers this way. This is a good way to secure sales as well because when said plane/car/boat is in for repairs, you are in a unique position to advise them on upgrades/new products; you also build the trust of your customers which will pay off the next time they want to make a major purchase. Whatever you do, don't try to make a living just moving boxes....the big guys have that down to a fine science...you cannot compete with them at that.
Good luck!
