Greg

The Chinese government has been keeping the value of the yen considerably below its market value. This essentially applies a government subsidy to all products produced. Two identical products produced there and here will always be cheaper even given the same costs because of the government subsidy there. We have been reaping it in the form of dirt cheap ARF's. I'm sure you have noticed you cannot build a model from a kit that is also ARF'd for the price you can buy the ARF for. This is the reason. The kit and materials alone here cost more than it costs to produce the model in its entirety there.

So you get a company like VectorFlight, trying in the environment of a North American economy, and a product cannot be made competatively. Even when the quality is better and better supported the margins are just not there to give an adequate return to the business. Go price a new Chevy suv and look at the orign of the components, you will quickly see how the truth of this comes into play.

Its a shame. VectorFlight really tried to fight this even by moving part of its operations to Canada. Even with their legendary customer service. Its just the beginning of the bell tolling. Look at the happenings in the auto supply and very soon auto industry to see the next place the shoe falls.

bob