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How much are RC products marked-up?

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Old 04-18-2006, 04:22 PM
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psychorevo
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Default How much are RC products marked-up?

RCs are awesome but pricey.

Just curious,

How much mark-up and profit margin are in each product.

For example, a Savage may be only $200 and sold for $450 when all is said an done.


A Revo 3.3 may only be $20 but are sold for $500+.


Any ideas?
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Old 04-18-2006, 04:25 PM
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Default RE: How much are RC products marked-up?

It probably depends where the mark-up is happening, I'm no expert in marjketing or sales, but many things are marked up 100% or less. rc's probably way less by the dealer.
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Old 04-18-2006, 04:34 PM
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Default RE: How much are RC products marked-up?

I walk in to the LHS a few weeks ago, and the manager calls me over and asks if I'm interested in a T-Rex. I am, and he already knew I was looking for a heli in that size range, so he shows me his supplier order form with dealer prices and retail prices. After glancing down the list I ask if he can get me the least expensive one that retails for $150. He says "Well, I'll only make $45 on that one," and proceeds to ask me if I'm interested in one that retails for about $450 and his cost is barely more than $300. I declined any of the others and eventually got something off eBay.
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Old 04-18-2006, 04:36 PM
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Default RE: How much are RC products marked-up?

I suspect most all of the markup is from the manufacturer or distributor. I don't think the little guy makes a whole lot of profit. But, I also think they make a little more percentage on parts than they make on the trucks. But I am only a consumer of RC, so I really don't know. But in other industries, the smaller items is where the larger markup is at.
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Old 04-18-2006, 04:38 PM
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Default RE: How much are RC products marked-up?

not sure, but Im betting they make the vast majority of their profit in replacement and upgrade parts.
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Old 04-18-2006, 04:45 PM
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Default RE: How much are RC products marked-up?

Most bussinesses I know of today are pretty cut-throat if they are popular. Hobby shop may be the exception.
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Old 04-18-2006, 08:22 PM
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Default RE: How much are RC products marked-up?

i dont think the cars or trucks are marked up that much, i would say 15.00 on every 100.00 dollars. the ticket items are the car bodies, igniters, etc. i knew a person [sm=wink.gif] who worked in a "box store", (you know what i mean right) well the main products made pretty much no profit but the extras made 500%profit. lets just say that a 3 prong plug adaptor is .80 cents at the store to purchace, well it cost like .2 cents for the store to buy. the same goes with real cars, i knew a person who got the cars from michigan( police fleet cars) they seen the tags that the dealer (about 9,000) buys them and the dealer puts their sticker on them( 26,000).
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Old 04-18-2006, 08:26 PM
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Default RE: How much are RC products marked-up?

yes they make most of their money off of parts. im unsure about the popular mt's but i remember my LHS talking about the baja 5b and he'll prob get it for like high 600's and will prob sell it for 900-1000. but kits dont get sold like parts do.
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Old 04-19-2006, 02:31 AM
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Default RE: How much are RC products marked-up?

You can check any business mag. or shop owners and you will find that a business, in order to stay profitable, must charge at least 50 to 100% markup on the items that it sells. I know only from experience. There is only one business that is open today that is the exception to this rule in which they have many items with only a 25% markup and the rest at 40-50% markup and that is Wal-Mart (Forbes 2005). Now I do know that R/C is no exception to this rule, alot of profit does come from parts and many parts prices are set from the manufacturer, but they are still priced to bring correct profits for the store. Depending on the sales of a particular product and distributor the average cost of a T-Maxx for example is only $150 to $190. So you can see, it is profitable to the business that carries them. Too, many mfg. and franchise companies will revoke you if you engage in the ebay type of sales or if they allow you to do so will still revoke you if your caught selling their items at the cost or cut throat pricing. This is to keep the product image up. Product cost is dertermined mainly by whether or not you buy from a distributor (Great Planes) or direct from the Mfg. (Traxxas) unless it's Losi then it is always Horizon as XTM is Global. Direct is the only way to go but is unavoidable in some cases. I hope this helps answer your question.
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Old 04-19-2006, 07:54 AM
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Default RE: How much are RC products marked-up?

Actually I know the mark ups...was talking to my LHS about it, since they know I can find it out. But remember all industries charge mark ups, the RC one is not over gauging us.

Replacement/Hop ups are a good 40-50% mark up.
Fuel = low ~10%
Electronics = ~15%
Kits/RTR's = 15%
Tires = ~10%
Batteries = 25%
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Old 04-19-2006, 08:37 AM
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Default RE: How much are RC products marked-up?

A good friend of mine works at my LHS. He has on several occasions shown me the trade order price list (remember this is in Aus dollars). On small items like servo horns, glo plugs, glue etc the markup is around 100%, sometimes more. This is because it takes time for people to receive boxes, open them and pack them on the shelves. This is un profitable if they are only making $0.25 per item. For the bigger stuff it varies quite a bit. The shop wanted to try out some new aircraft. I was offered one for $650 do they could see what they were like. I bought it and because they were pleased with the model they ordered in some more. They then sold these for $850. I'm told they still made money (but not much) on my $650 sale. Another example, an OS .21 Vspec sell at my LHS for about $440. If I remember correctly the trade price is around $290.
This sounds like a lot but people don't usually become rich from owning a small LHS. Being a distributor however, now thats a different story.
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Old 04-19-2006, 12:02 PM
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Default RE: How much are RC products marked-up?

The parts that you have to have will be sky high, Like a little pin to go into my front axles is 6 dollars, the thing is tiny. My lhs showed me a pair of tires on his computer, They said 11 dollars for him to buy it, then he sells them for 15 or 16. So he makes like 5 bucks on those. But the small things are the marked up ones.
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Old 04-19-2006, 12:22 PM
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Default RE: How much are RC products marked-up?

ORIGINAL: binaryterror

Actually I know the mark ups...was talking to my LHS about it, since they know I can find it out. But remember all industries charge mark ups, the RC one is not over gauging us.

Replacement/Hop ups are a good 40-50% mark up.
Fuel = low ~10%
Electronics = ~15%
Kits/RTR's = 15%
Tires = ~10%
Batteries = 25%
This is about the percentages I would expect.
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Old 04-19-2006, 07:15 PM
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Default RE: How much are RC products marked-up?

I'm guessing the radio is the most marked up item in RC world in terms
of total mark ups from mfg to Retail.
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Old 04-20-2006, 06:07 PM
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Default RE: How much are RC products marked-up?

How about motors? My hobby shop man told me the duratrax photons costed about a dollar a piece.
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Old 04-21-2006, 09:41 AM
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Default RE: How much are RC products marked-up?

Here are a few of more popular models that I have wholesale prices for. If you want the price of a particular model just let me know. Note that you have to order 10 or more for most of these to get this price.


Model No.: #96963
Product Origin: USA
Brand Name: Savage X 1/8 RTR RC Nitro Monster Truck
Unit Price: 335 USD
Price Terms: FOB 335
Other Price Terms: 335
Payment Terms: T/T,M/T
Payment Remarks: T/T
Supply Ability: Instock
Minimum Order: 10
Delivery Lead Time: 1-2
Certification(s): Yes

Model No.: #45656
Product Origin: USA
Brand Name: 3 Speed HPI RTR Savage 25 Limited Editio
Unit Price: 315 USD
Price Terms: FOB 315
Other Price Terms: 315
Payment Terms: T/T,M/T
Payment Remarks: T/T
Supply Ability: Instock
Minimum Order: 10
Delivery Lead Time: 1-2
Certification(s): Yes

Model No.: #898976
Product Origin: USA
Brand Name: Savage SS 4.6 Kit with Nitro Star K4.6
Unit Price: 330 USD
Price Terms: FOB 330
Other Price Terms: 330
Payment Terms: T/T,M/T
Payment Remarks: T/T
Supply Ability: Instock
Minimum Order: 10
Delivery Lead Time: 1-2
Certification(s): Yes

Model No.: #89663
Product Origin: USA
Brand Name: Traxxas Nitro Revo RTR RC Monster Truck
Unit Price: 320 USD
Price Terms: FOB 320
Other Price Terms: 320
Payment Terms: T/T,M/T
Payment Remarks: T/T
Supply Ability: Instock
Minimum Order: 10
Delivery Lead Time: 1-2
Certification(s): Yes

Cen Genesis .46
Model No.: G 46
Product Origin: USA
Brand Name: CEN's new GENESIS
Unit Price: $225 USD
Payment Terms: T/T,CASH
Payment Remarks: Wire Transfer
Supply Ability: In Stock
Minimum Order: 10
Delivery Lead Time: 1-2
Certification(s): Yes

Cen Genesis .46 LE
Model No.: Nitro RTR 46 Truck REVO
Product Origin: Japanese, UK, USA
Brand Name: Nitro RTR 46 Truck REVO
Unit Price: 275.99 USD
Payment Terms: T/T,CASH,D/P
Supply Ability: 1500 Per Month
Minimum Order: 10 Unit
Delivery Lead Time: 2 - 7 days
Certification(s): CC ISO9001, ISO9002


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