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Author Topic: Why devalue your own product? DF65 Yacht.  (Read 1922 times)

unbuiltnautilus

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Why devalue your own product? DF65 Yacht.
« on: October 17, 2018, 08:57:53 pm »

Today we found ourselves in a position where we gave back seven DF65 Dragonforce yachts to our Ripmax rep. Nothing wrong with them, a superb entry level design of racing yacht, which the market sorely needed and is now a very popular bit of kit.
Why, you say..
Well, there is another importer, bypassing the official importer, getting crates of these things in and selling them on in big numbers, direct from the manufacturer in China, the advantage of being one of the original designers of the product no doubt. But here is the rub, despite having the selling advantage of being a big name in the hobby, the product is still being discounted below the official importers recommended selling price. now a little bit of healthy competition is never something to complain about, but we can only match these prices by cutting our own throats on any profits, what is the point of that really. There are many more products with a half decent mark up built in to help your local model shop stay open, so DF65s are now off the shelf. I am really annoyed that following various customers saying they went to this chap to save a tenner here and a tenner there, but do we have a length of dyneema cord cos he is currently out of stock!
A young regular customer of ours was in today, we had a chat about it, after it turned out he bought his DF65 from elsewhere, little realising he could have got it from us for a few quid more, but with our on-site knowledge base to tap into. And HE said that this is devaluing the own product, by taking advantage of his position in the design chain, he is undercutting everybody else who is using the Joysway Uk distributor. Now I know we are in a free market economy and all that jazz, but the product would support a tenner on his current pricing, it is a damn fine bit of kit. By putting a tenner on the price it would give all the small model shops around the UK a fighting chance to also put this product on the shelf and on the water, to the greater good of all. Instead, we have given almost all of ours back and will not be restocking when the last ones are gone. Same on the spare parts, better things to spend the money on. I wouldn't mind, but we have six groups in about a 25 mile radius using these models, virtually none buying the big ticket items, just servos and string!
I am annoyed in the extreme, the prices came down about six months ago, the V6 version was proving to have cured all the previous issues with the design, packaging looked excellent, the product was something I felt I could get behind as a quality bit of kit, we got a discount for a bulk purchase, BUT, still couldn't touch the direct import price. Better to just be done with it once and for all, pity really.
We have actually sold substantially more Graupner Titanics at nearly a thousand pounds each, in the last eight months..maybe yachties are just naturally tight >>:-(
So Portsmouths local model shop is now done with Dragonforce yachts, sorry guys but you brought it on your selves.......

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Taranis

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Re: Why devalue your own product? DF65 Yacht.
« Reply #1 on: October 17, 2018, 09:35:55 pm »

Fair informative explanation thank you.
Does this direct importer avoid the commissions paid to the joint designers for each sale too?
I feel the Joysway models could be cheaper if there weren't so many fingers in the pie and Ripmax I guess leave little margin for discounting. I bought from wireless madness last year marginally below the going rate but bought three sail sets and many other parts from radiosailing and Cornwall models.


EDIT a quick search shows radiosailing are now much cheaper than the discounted price I paid last year so yes I agree my purchase is worth less for resale. A £30 drop


I rarely use my yacht but I spent at least as much if not more on extra parts sails decals etc so I guess they twigged the boat itself is only the bait
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justboatonic

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Re: Why devalue your own product? DF65 Yacht.
« Reply #2 on: October 17, 2018, 11:31:37 pm »

I ran \ owned a retail business once. Soon learnt almost everyone undercuts you and the customer will always be willing to go elsewhere and get it cheaper, even if they have to wait days to actually get 'it' in their mitts.

Cut my losses and got out of it when I could. Couple of years later we went looking at new carpets. Found one we liked in a few shops and priced up. A small guy said he couldnt discount as much as the bigger local outlets but wife and I recognised going for the biggest discount doesnt always feel right.

Dont get me wrong, I'll rings as big a discount out of a big company as much as I can but not with smaller, local businesses. Through our own struggles, we recognised it is tougher for the smaller guy so paid a bit more and gave him the sale.
Really feel for people trying to run a retail outfit on the High St today.
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carlmt

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Re: Why devalue your own product? DF65 Yacht.
« Reply #3 on: October 18, 2018, 12:13:16 am »

Unfortunately, this is why you will not find any of our kits for sale on the high street or in model shops - we, as the designer, developer and manufacturer, could not come close to making a sensible margin if we had to offer our kits to retailers at a sufficient discount for THEM to make a profit.


We would love to be able to sell through the model shops but it just isn't financially viable - for us.


They are only available direct - no middlemen.


CT

Neil

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Re: Why devalue your own product? DF65 Yacht.
« Reply #4 on: October 18, 2018, 01:08:03 pm »

Unfortunately, this is why you will not find any of our kits for sale on the high street or in model shops - we, as the designer, developer and manufacturer, could not come close to making a sensible margin if we had to offer our kits to retailers at a sufficient discount for THEM to make a profit.


We would love to be able to sell through the model shops but it just isn't financially viable - for us.


They are only available direct - no middlemen.


CT



I remember many years ago when I designed the lifeboat kit Ann Letitia Russell, that the only way to make any profit was to market the kit myself, but in the end it became far too time consuming, and so sold the whole thing on to Metcalf Mouldings...…..it is a very time consuming adventure and I applaud you carl, and other very small one man bands for venturing out to give us modellers a taste of excellence...…. :-)) O0 :kiss:


and on the other hand, deplore and despise those who condemn the small traders, who from time to time get it wrong, and can't fulfil their order obligations for one problem or another. They haven't been there or done that or had the stress of complaint after complaint regarding a product that they have spent thousands on just so that you and I can build a superb model from the  box.  >>:-( <*< 


yes Carl, I commend you and others like you for doing such sterling work, and putting your lives on hold, basically so that we can enjoy such magnificent kits and models.
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surfer71

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Re: Why devalue your own product? DF65 Yacht.
« Reply #5 on: November 19, 2018, 09:39:29 pm »

i'm not surprised it's a popular boat and it always seams that entry level products what ever they are, bring out the Arthur Daily's in sheep skin coats.. oi mate want to save a £5ver !
I get it in my trade and all the budget market guys go on line to buy.. then I get the call.. er.. well.. we bought this on line and well we think it's all measured wrong so we thought you would like the work to come and sort it all out.. my reply now is simple.. yes £250 to come out.. !!!


ironically.. i put my prices up on the more bespoke work and I am now flat out!!! can't keep up with demand! best advice... keep away from budget items and sell more bespoke.. the customer base improves!! ££
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Hotglove

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Re: Why devalue your own product? DF65 Yacht.
« Reply #6 on: November 21, 2018, 08:10:42 pm »

I have 6 model shops within a 20 min drive, each has particular strengths and I always try them before buying online. All of them have, at some time, had very good value items and all have saved me significant sums by preventing me from making expensive mistakes.
Plus, of course, shared expertise, minor repairs and adjustments at little or no cost, part exchanges, percentage sales, and, in the case of MWM Warbirds at Rochester Airport, coffee, sausage rolls, mince pies, etc.
Trawling the internet for bargains is a pretty sterile experience compared to dealing face to face with fellow modellers who have had the guts to try to make a living from the hobby.
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