RCU Forums - View Single Post - DLE Engine Pricing
View Single Post
Old 12-16-2010 | 11:39 AM
  #20  
SpinnerRow's Avatar
SpinnerRow
 
Joined: Oct 2008
Posts: 1,372
Likes: 0
Received 2 Likes on 2 Posts
From: Flower Mound, TX
Default RE: DLE Engine Pricing

ORIGINAL: BadAzzMaxx

The sad part about the whole deal is the big boys waits until a product has been proven by the hard works of other people then when the product has had most of the bugs worked out they make there move.

Now if history repeats itself in probably two years the big boys will have total control over DLE products.

This is what Sears used to do years ago and Home Depot still does this also.

They will enter into a exclusive contact with them and guarantee them to sell say 2,000 engines a year at say $160.00 each, DLE thanks that is great dealing with a big company with a guarantee to sell more than they have ever sold. (All your eggs in one basket)

Now DLE sets up to manufacture that many a year and have a heavy investment in doing so.

Next year time for contract renewal, They tell DLE they want to renew there deal but only will pay say $120.00 per engine, DlE knows they can produce them for that price but with hardly any profit, But if they do not agree they have a lot of debt to cover from expanding to meet the first years contract and will go under if they do not agree to it.

So the big boys say no problem we will take it over and cover your debts.

So I hope DLE can see this written on the wall and always keep a good back door open for options.

Milton
Survival of the fittest. Sucks yes but that is the way it is and why companies like Tower have been in business for decades. I have no vested interest in Tower hobbies whatsoever and if someone else could beat Tower's price, I'd buy from them. It is that simple for me.

DLE, like any other company, needs to make wise business decisions or they will get caught with their pants down and find themselves out of business or owned by someone that makes better business decisions. I find no fault in that.

If DLE prices skyrocket, I'll quit buying them and buy the new/next three lettered brand engine that comes out with a better price/power/reliability and start the process all over again.

ORIGINAL: hairy46

When ready I will order from Valley View RC, I have the super saver membership with Tower but that said would rather pay just a bit more and get the backing that Valley has! It will be my first gasser so allot of questions I am sure will be asked by me! Tower has my glow needs met and Valley will be my gas engine shop, They for sure have earned my respect!
Valley View is a class act company. I've bought a few things here lately from them. After the new year, I'll order a JBA 15G and a 42% opto kill. Gotta finish the plane it is going in first.