Having a company name such as Hawkeyes Hobbies to most would probably make one think…hobby shop. Well its true many do at first glance think Hawkeye’s Hobbies is just that, a hobby shop not a manufacturer, but that is not the topicof this post.
I know that I am not alone among others in this industry who are being bombarded by emails from manufacturers in China and other places along the Pacific rim that produce hobby related products. Many of these companies are now pitching their goods to the retailers direct even though they make these products under license for others, who in turn market and distribute them.
My best guess is that many a retailer who is working with tighter margins is looking at this as a golden and profitable opportunity. I can purchase direct with guaranteed express two day delivery, with a modest minimum order quantity and which will increase my profit margins considerably.
I know these companies are gleaning email addresses from organizational membership lists, subscription lists and online resources relating to hobby shops. Probably a few consumers are seeing these same emails, which if you have a credit card you too can order them for resale or as gifts for yourself or your family and friends. These companies just want your money!
The consequences of this are… But how many of you actually care? Are these companies violating any agreements, laws or trade regulations or are they just savvy and hungry because they are not getting enough satisfaction by doing business as usual? If the status quo isn’t working, one must find solutions or suffer. Seems they have found a solution, marketing to the lowest level circumventing their distributors or those who they produce products for under agreements or licenses.
There is something to be said for local manufacturing of a product, versus outsourcing to overseas vendors. You have greater control of what that (outsourced) vendor is doing behind your back. Creates jobs within ones community, region, state and homeland.
While you ponder this in your mind, I’ll continue to mull over whether or not I want to purchase a certain miniature RC helicopter for a quarter of what I can source it for through a local distributor/retailer…hey that’s two for the price of one!
Now in all honesty I won’t order from that China based company, instead I’ll support a business within my own country’s borders. Why? Because it puts money in our economy, keeps people employed and who knows they might the favor by purchasing my products because I decided to do the right thing!
I understand exactly where you’re coming from. I get emails from manufacturers in Asia looking to go direct to end users and cut out the middleman.
If your business model supports sourcing products direct from Asia, then go ahead. But be wary of running afoul of U.S. laws unless your Asian contacts can verify they’re not using lead or other poions/contaminants in their manufacturing process. Liability issues are something to consider when sourcing products from overseas. I’d rather work with a U.S. based business who understands our laws and regulations than take a chance with a foreign manufacturing source, running the risk of getting burned and possibly losing my business.
We might be able to buy a kit or 2 from China for a little cheaper than we can here, but, the shipping brings the final total back to close to the same thing. Not only that, but, they–like Hasagawa, Kinetic, Trumpeter, etc.–have raised their prices out of sight. The only ones that buy them, are the guys that money is no object to them, so, they keep them in business. Guys don’t want to buy Revell, ’cause they think they are cheap, and, even they aren’t made in the USA anymore. Far as I’m concerned, Revell still makes the best kits for the money.
I’m really looking forward to meeting you at Osh-Kosh. The Blue Angels and the F-22′s are coming here to St. Cloud, Minnesota last week of June–20 miles from my house. The plane we fly to Osh-Kosh in is hangered there. Keep up the tips. BTW–do you have any of those sanding sticks (tips) they advertise on Micro-Scale stuff? They only sell them in a jar of 300 or so–can’t use that many.
Telly
The Distribution-chains must do something about this on their own and invest their energy and profits in protecting their positioning or fail. Their up-charge should not just support net/net profits and their cheap-cheap overhead for leasing big box storage facilities and a security guard willing to work a night-shift. They could wake-up a little earlier one day, use their combined power as an international distribution-consortium to engage directly with the OEM/source-manufacturer and state ground rules- “Either give us exclusive access to your product versus having competing consumer access or we, as a whole, will boycott/refuse to do any business with you.” That could cause an unacceptable risk to the manufacturer of losing the bulk purchasing power of the distribution chain leaving them solely dependent upon the one-off consumer market to support them.
In the meantime, I am a consumer looking for the cheapest price I can find with the inherent challenges of a natural supply/demand model and I have no interest, nor should you, in floating/subsidizing flawed/outdated business models and/or poorly-run/lazy distribution-industry management teams. I have zero sympathy and feel no obligation to pay-up for products just because somebody in the middle has the wherewithal to purchase 1000 1/48 Hasegawa F-14 Tomcat model kits and turning around and charging $89.00 for a $50.00 kit and/or feels entitled to have that positioning maintained for them.
E-Bay, private transactions amongst consumers, or dealing directly with manufacturers for the best price is my personal challenge in acquiring an item that I want and it is the Distribution-chains problem to defend/create their own value for profiting in the retail supply chain.
Welcome to the Free Market and if they don’t like it, vote for Obama again and hope he continues with his plans to turn one of the last Countries on Earth from a Free Market into a rigged, corrupt, and Socialist-dictated economy instead…
We might be able to buy a kit or 2 from China for a little cheaper than we can here, but, the shipping brings the final total back to close to the same thing. Not only that, but, they–like Hasagawa, Kinetic, Trumpeter, etc.–have raised their prices out of sight. The only ones that buy them, are the guys that money is no object to them, so, they keep them in business. Guys don’t want to buy Revell, ’cause they think they are cheap, and, even they aren’t made in the USA anymore. Far as I’m concerned, Revell still makes the best kits for the money.
I’m really looking forward to meeting you at Osh-Kosh. The Blue Angels and the F-22′s are coming here to St. Cloud, Minnesota last week of June–20 miles from my house. The plane we fly to Osh-Kosh in is hangered there. Keep up the tips. BTW–do you have any of those sanding sticks (tips) they advertise on Micro-Scale stuff? They only sell them in a jar of 300 or so–can’t use that many.
Telly