Anyone in business understands what is going on but consumers usually don't and think the seller is jacking them around. That may be true in some instances but not all.

I agree somewhat with Mr. Cregger above concerning MBA's thinking process but to stay in business one needs to retain a profit margin. Many US businesses are operating on slimmer margins than a year ago, others ran out of margin and closed up (re: The Webra engine manufacturer just announced it is bankrupt and now closed).

If Hobbico provided a breakdown of expenses (and profit margin) involved in the current priced $479.00 P-6E ARF it would stagger the imagination of anyone with a brain. Others will deny the reality or simply believe they are getting screwed.

Several friends and I have discussed the rising ARF prices (none of us is surprised) and where the point is reached that building from a kit becomes practical and possibly less expensive for the larger models. For example, I believe I could build a TF giant P-51 kit to the RTC stage for less money than it's current price and probably equal the ARF price.

I predicted the rising prices when ARFs were in their infancy. I'm glad to have a stash of kits in various scales and types, 40-50 rolls of Monokote, numerous spinners, wheels, tanks, hinges, clevis', etc., most of which was purchased at close out or give away prices at hobby shops or swap meets. All of these vendors or individuals couldn't clear this stuff out fast enough to make room for ARF's.

Fortunately I grew up in this hobby where building was the only way to have a finished plane. Many in this hobby will downsize or move on because they don't know how and don't want to learn.