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Why so much??

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Old 12-12-2008, 09:53 AM
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westphill24
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Default Why so much??

I dont know about you but I am a little upset over the price of the new jammin x2 cr. Its $700 at amain and from what I have seen its only a different version of the x1x not a complete remake. I guess Kyosho started it so Jammin figured if theyll pay $850 then why not $700. I just dont get how HB can put out a winning buggy at $300 and everybody else goes double. Not bashing it. I just wanted one and the price just turned me off from it but hey, maybe it will come down before it actually sells.
Old 12-12-2008, 08:50 PM
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Default RE: Why so much??

I know what you mean as the Hyper 9 is $150 more then the Hyper 8.5. I heard sometime ago that items made in China will be going up! [:@]
Old 12-12-2008, 08:55 PM
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Default RE: Why so much??


ORIGINAL: westphill24

I dont know about you but I am a little upset over the price of the new jammin x2 cr. Its $700 at amain and from what I have seen its only a different version of the x1x not a complete remake. I guess Kyosho started it so Jammin figured if theyll pay $850 then why not $700. I just dont get how HB can put out a winning buggy at $300 and everybody else goes double. Not bashing it. I just wanted one and the price just turned me off from it but hey, maybe it will come down before it actually sells.
The difference is the Kyosho is made in Japan! Very expensive to continue to do that, even a lot of japanese electronic companies now have items made in China to cut costs.
Old 12-13-2008, 12:53 AM
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westphill24
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Default RE: Why so much??

Isnt the D8 manufactured in china? I thought most money went to R&D and thats where the question came from. If its not a totally new design then why the much higher price?
Old 12-13-2008, 01:06 AM
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Default RE: Why so much??

I agree with you, the Jammin is not made in Japan, therefore the manufacturing expense should be much less than the Kyosho. I believe Hong Nor are a taiwanese company (manufacturers of the Jammin products), which may be more expensive than mainland china, but shouldn't be double the price of the D8.
Old 12-13-2008, 05:11 AM
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Default RE: Why so much??


ORIGINAL: 46u

I know what you mean as the Hyper 9 is $150 more then the Hyper 8.5. I heard sometime ago that items made in China will be going up! [:@]
That could be true, either of a few reasons. Here are some possibilities I can think of:
One is the poisons scare of chinese products. So, lets say an RC from china is found to have poisons in it, I think the resellers either are sending them back or the resellers are made to send them back.
Another is that the resellers could be demanding that the chinese makers make better quality products with fewer instances of manufacturer defects. That means if an RC has a defect, the reseller will send it back and demand their money back. The chinese therefore lose that money and have to increase their reject parts and products at the factory (they make parts, but they cant sell them so they have to discard them) thus they lose money for the reject parts and have to raise prices to compensate for the those lost potential sales pieces.
Another issues has to do with trade laws or trade agreements, but I am not going to discuss that. To many governmental and political issues tied into that.
Old 12-13-2008, 05:17 AM
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Default RE: Why so much??


ORIGINAL: westphill24

Isnt the D8 manufactured in china? I thought most money went to R&D and thats where the question came from. If its not a totally new design then why the much higher price?
The D8 is made off teh coast of china I believe. Taiwan is where virtually all HPI stuff is made (including HPI's subsidiary, Hot Bodies).

R&D is only one aspect of cost. Another aspect of cost is materials cost and quality controls. If you put better materials into an RC, it will cost more. If you put better designed parts, if those parts requrie more intricate machining motions to cut and make, that ups the cost too. An for quality controls, a high quality control standard means that you will have many many more reject parts that you cannot sell. The reject parts must be discarded (or if they can be recycled, melted down to recast to in an attempt to make the same part again).

These are the primary costs of manufacturing anything, Be it RCs, TVs, computers, telephones, hammers, screwdrivers, or whatever.
Old 12-13-2008, 10:52 AM
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westphill24
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Default RE: Why so much??

Still dosnt explain it. I understand govt poloicies, tariffs, manufacturing, supply and demand and most other aspects of bringing a product to market. Once a product has made its initial introduction into market unless there is a drastic design change then prices usually go down. Look at TV's, when a new tech starts out its really expensive and as time goes on it keeps going down in price until you get a totally new design, Plasma/LCD. Im not trying to start an argument or anything I just wanted a better explanation other than just Jammin giving a premium price for their product. Nothing wrong with that just wanted to know.
Old 12-13-2008, 09:32 PM
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Default RE: Why so much??


ORIGINAL: mtbkym01


ORIGINAL: westphill24

I dont know about you but I am a little upset over the price of the new jammin x2 cr. Its $700 at amain and from what I have seen its only a different version of the x1x not a complete remake. I guess Kyosho started it so Jammin figured if theyll pay $850 then why not $700. I just dont get how HB can put out a winning buggy at $300 and everybody else goes double. Not bashing it. I just wanted one and the price just turned me off from it but hey, maybe it will come down before it actually sells.
The difference is the Kyosho is made in Japan! Very expensive to continue to do that, even a lot of japanese electronic companies now have items made in China to cut costs.
Do some checking and I do believe you will find out many of the parts on the Kyosho are made in China. I know Hobao use to make some of the parts for the Kyosho.
Old 12-13-2008, 11:31 PM
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Default RE: Why so much??

THATS ALL 750 YOU SHOULD GET 2 OF THEM THATS PLAY MONEY
Old 12-14-2008, 12:07 AM
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westphill24
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Default RE: Why so much??

Everybody may not be feeling the recession but I got laid off and had to take a job making a nice amount less. Play money is relative. On the other hand I have no problem paying money for things, its just when I see something that has such an incredible premium price that I just wonder. I really like Jammins so Ill probably stiil get one but jeez cut us a brake guys.
Old 12-14-2008, 12:12 AM
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Default RE: Why so much??

ORIGINAL: TRIPPLE A STRONG

THATS ALL 750 YOU SHOULD GET 2 OF THEM THATS PLAY MONEY
Have you ever not typed in caps?

Anyway...As far as chinese goods going up in price...LET'S HOPE SO, and let's hope that the price of Chinese manufacturing gets too expensive so we can bring some jobs back Stateside. Or even Europe, Australia...anywhere but china...

[/soapbox]
Old 12-14-2008, 01:56 AM
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Default RE: Why so much??


ORIGINAL: westphill24

Still dosnt explain it. I understand govt poloicies, tariffs, manufacturing, supply and demand and most other aspects of bringing a product to market. Once a product has made its initial introduction into market unless there is a drastic design change then prices usually go down. Look at TV's, when a new tech starts out its really expensive and as time goes on it keeps going down in price until you get a totally new design, Plasma/LCD. Im not trying to start an argument or anything I just wanted a better explanation other than just Jammin giving a premium price for their product. Nothing wrong with that just wanted to know.
My best speculations would be that Jammin is turning down more chinese stuff that does not cut it. And of course, the chinese manufactures get frustrated, and have to up the price to compensate for the rejected parts that Jammin used to accept before. But hey, that is manufacturing costs for you. If you demand a higher quality, you will have more reject parts that would have otherwise been sold.

That is how it is possible for an RC product can go up in price even after the initial R&D and tooling have been paid for.

BUT I dont know for sure. This is only my best guess. Only Ofna and Jammin know, and since they operate in a closed book policy on their manufacturing subcontractors and business deals, good luck finding out the truth.
Old 12-15-2008, 08:58 AM
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Default RE: Why so much??

it will be interesting to see how these companies continue this trend..
Kyosho big bucks buggy compared to the last one...
Then Mugen is pricey and the Xray have announced increases...
I have bought 2 Jammins in my 2.5 years racing and there werent any money like that!
What is justifying this increase? (A TREND!!!!) [:@]

There is a resession now so I would like to see how this pans out this time next year.
Old 12-15-2008, 01:23 PM
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Default RE: Why so much??

Other possibilities I just thought of to cause increases are also scarcity of materials. It could be that teh 7075 alum the high end guys use could becoming rare or harder to obtain because the alum makers are not making as much 7075, or the zinc needed for 7075 has gone up in demand, or alum in general has gone up in demand. Thus, the RCs become more expensive. And if it is alum in general, not just 7075, is becoming scarcer, then eventually ALL RCs will go up in price
Old 12-15-2008, 01:37 PM
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Default RE: Why so much??

I agree with it being part of a trend and even if all other circumstances brought up in this thread are true its all supply and demand. The manufacturers know that people will buy certian products at an inflated cost but I think Kyosho set the bar and now others companies figure "if theyll pay that much for that we can probably get close to it". In the meantime compared to the MP9 the Jammin still seems like a deal, which makes it an attractive buy. Well i guess when you look at it its all Kyoshos fault if they didnt price there buggy so high the competition couldnt of raised there prices.lol
Old 12-15-2008, 01:48 PM
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Default RE: Why so much??

Truth is, its a luxury. It sucks but thats is the problem. If you want it you have to pay what they charge. The cost of gas has dropped more than half of what it cost just six months ago, but for some reason the world govenments did not say that the oil companies were price galging. I don't think they are going to jump on any of the hobby manufacturers for doing the same. If the hobbiest of the world could unite for a six month period and boycot the purchasing of hobby items, I bet you would see a large drop in price. Problem is I don't think I could hold out that long. I love this s@#t to much!!!!
Old 12-15-2008, 02:59 PM
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Default RE: Why so much??

I'm sure the price is just high to rip-off the early adopters. It'll come down in a bit, I'd assume.
Old 12-15-2008, 04:05 PM
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Default RE: Why so much??


ORIGINAL: breakin2

I'm sure the price is just high to rip-off the early adopters. It'll come down in a bit, I'd assume.
That is true for any new product, not just RCs, but TVs, computers, etc. all have that same trend.
What is baffling though is these RCs aer not new and the initial retooling and r&D has been paid for or is nearly paid for. The priices are just going up.
Old 12-15-2008, 04:21 PM
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Default RE: Why so much??

Thats true and I think X-ray is the worst offender. Out of all the manufacturers they bring out a new revision atleast twice a year so they can always charge top dollar for it being a new product.
Old 12-15-2008, 08:10 PM
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Default RE: Why so much??

I just though of yet another reason why n existing product beyond the R&D and retooling costs might go up in price: Local conditions. What I mean is business taxes where they make X-Ray for example might be going up.

Unfortunately, and in reality, we the consumers will never know why prices are the way they are. NO company, RC or whatever product, is willing to open their books and explain their price break-down. It would be great if we teh consumers were able to force companies to be transparent, so we can see just what our money is being spent on. Also, that way, we can see which companies are gouging with huge mark-ups and which companies are honestly trying to do business with a fair and decent profit margin.

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