ORIGINAL: MikeL

You're comparing some fundamentally different situations. US-based kit-cutting companies wouldn't compare themselves to Asian ARF factories, nor would they compare themselves to the larger kit making companies.

If you want to get started as a kit-cutter, compare yourself to others in that same line of business. http://www.btemodels.com/prices.html would be a closer comparison, but not perfect. Bruce has been pretty successful (in terms of reputation). He kits his own designs, however. You may have to pay some licensing fees if you're kiting someone else's plans.

You can't compete with the mainline ARFs or kits. It's not possible unless you use their methods and practices. You probably don't have experience in importing goods, negotiating international contracts, and marketing. You can't compete with a company places orders for products or materials in huge quantities. The wood you buy changes hands quite a few times before it gets to you, and each of those hands makes a profit. Same with the hardware.

If you want to get started in the business, look how others have started successfully and use their experiences and choices as a guide for your own business plan. You can't look at fundamentally different businesses, such as Hobbico.