RCU Forums - View Single Post - Skyshark kit prices
View Single Post
Old 08-10-2006, 10:25 AM
  #11  
mcarleno
Senior Member
 
mcarleno's Avatar
 
Join Date: Feb 2004
Location: Gilbert, AZ
Posts: 518
Likes: 0
Received 0 Likes on 0 Posts
Default RE: Skyshark kit prices

Price jump is big I agree, but skyshark kits are about the best stand-off scale you can get. I know they are expensive, but many of us in the building community complain endlessly about kit manufactures going out of business or moving to ARFs. You know if everyone here had bought one when they where lower price, maybe Mike could have kept the prices where they are at.

I built a great 40 size Yak-3 kit from Redstar RC. Laser cut top quality wood just a great kit. Priced good too. I started up a relationship with Mike from Redstar only to find out that after two years even with great reviews and an awsome product, they only sold about 40 of them. So you take Skyshark who may sell 100 or so kits of each version a year (probably way less). Lets say they make 35% on a kit (not at the prices they where selling, has anyone priced balsa these days). So thats less than 500 kits.

1000 x $250 = $250,000 * 35% = $87,500 gross margin (then equipment, people, benifits). Boy, I have 5 employees and we just skimp by doing about $1M a year. I would rather pay a little more for a kit that's available then to buy a plane pre-assembled in China!

Complain, but if you want a great kit and what is still a great price. Buy Skyshark! The best way to keep prices down, is volume!