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Old 03-23-2013 | 07:29 AM
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sharp333
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From: CampinasSP, BRAZIL
Default RE: Does Price Determine Reliability ?

One thing to consider on price is the following:

Most model items today are done in Asia (not just China). A company having a recognized brand name buys the item, them add his badge and profit margin. Then the distributors add their bite too and finally the end seller.
When it come to consumer, price has doubled or tripled from original one at factory door.
What Hobbyking - and others- are doing is bypassing all these middle mens. Their business model is simple: Buy direct from factory and add just their margin.In some caes they don´t even have to stock, they use a Just in Time method. And as they sell MUCH more, can afford less margins. End result is that price become much cheaper to us.
This model is disrupting all the old , traditional one. Expect several compnaies that do not adapt to belly up soon....
BY same token, HK won´t be alone much longer. This is a mean. competitive world on business.

Note: I´m not saying everything sold by HK is good. I have made over 30 purchases and soon learned that they sell very oood stuff at an outstanding price but there is crap for sale as well. I started then avoiding the bottom price items, and selecting the top ones. Some of them are clearly the same part, made at same factory, just don´t have the famous badge attached
to it. But at 50-40% off

But some items I still prefer Japanese, they are still much better than anyone else on quality and reliability. I don´t see Koreans or Chinese companies catching up any time soon.
I trust critical and expensive items to them _ engines, radios, servos.