Is Axial Racing is going bankrupt?

[tjohanne]

Originally Posted by JatoTheRipper

It seems like their is some change at Axial with the new "no coupons" policy. But I think they are far from going bankrupt as they are the most popular brand in off the shelf crawling.

I have a man crush on Axial

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[Spiffy]

@fr8cture if you go to axial site they have a find store by zip. Looks like 7 around Minneapolis .


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[imthatguy]

This thread is why I generally stay away from Chit Chat.

[stevem50]

Originally Posted by JatoTheRipper

It seems like their is some change at Axial with the new "no coupons" policy. But I think they are far from going bankrupt as they are the most popular brand in off the shelf crawling.

I think that no coupons policy is to level the playing field as far as price goes..
Enough vendors probably got together and forced hobbico to stop tower from whoreing out the kits for cost. If they have a $60 coupon and then another $30 in ecash when you get an scx2 why would you buy it anywhere else? And if so how can anyone make a profit on the most popular kit out there if you need to sell them below cost just to get them off the shelf..?
After talking with a guy I know at a larger internet shop we all know, he explained how bad tower screws it up for every one with their pricing, and how no money can really be made off kits when they force their cut rate pricing.

As far as availablility goes, there's no shortage of axial parts as far as I can tell, find another shop if he doesn't want to bring in your parts


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[Alexander_0_1]

The whole coupon topic needs to be dropped, I shop from a local place, I've traded the coupon shopping from "tower" for free shipping from my LHS, and if I can't get my parts shipped out immediately Wayne the shop manager always take care of me by sending me things that I might need like free lexan scissors, free blades for my hobby knife, or solder as soon as my stuff is shipped.

[RcBro]

Lmao

[EddieO]

Originally Posted by stevem50

I think that no coupons policy is to level the playing field as far as price goes..
Enough vendors probably got together and forced hobbico to stop tower from whoreing out the kits for cost. If they have a $60 coupon and then another $30 in ecash when you get an scx2 why would you buy it anywhere else? And if so how can anyone make a profit on the most popular kit out there if you need to sell them below cost just to get them off the shelf..?
After talking with a guy I know at a larger internet shop we all know, he explained how bad tower screws it up for every one with their pricing, and how no money can really be made off kits when they force their cut rate pricing.

As far as availablility goes, there's no shortage of axial parts as far as I can tell, find another shop if he doesn't want to bring in your parts


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Hobbico forced Tower? You know they are one in the same right?

Tower has been undercutting hobby shops for decades...I worked at one in my teenage years (early 90s), there was multiple times tower had something cheaper than we could buy it at cost as a dealer, and it almost always was a product line owned by them...trust me, they don't give two shits about their dealers.

Later EddieO

[stevem50]

Tower is a subsidiary of hobbico, and the heads at hobbico had to be feeling the pressure from the smaller vendors getting the shaft from tower when another of their subsidiary companies, axial was getting sold cut rate. It's bad business when you slash your own price for no other reason than to move units on a product that will sell anyway.

I can see having a sale on a slow moving product, but making a new released and hard to get product unprofitable to sell is just stupid, there wasn't many out at first and they gave them away..


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[stevem50]

But back to the original point.. nobody thinks axial is bankrupt. I'd guess if anything, just restructuring their sales model.. unfortunately once the discount price genie is out of the bottle, you can't go back and charge more and keep your market share. I will also guess at this new "no coupon " time a lot more people will take a look at the losi u4 Rey buggy now that the yeti is closer in price


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[EddieO]

While its listed as a sub, they are one in the same. Headquarters at the same place, same people run the show for both. It's been that way since the beginning.

Hobbico, Inc. - largest U.S. distributor of radio-control and general hobby products

Tower Hobbies - Our History

Strange, both founded in 1971 by two guys....the simple fact is, Tower merged with Great Planes in the mid 80s to form Hobbico..Hobbico did not exsist until then, yet on their own history page they show the begining based on Towers history.

https://en.wikipedia.org/wiki/Hobbico

They stopped the coupons because they decided to make more $$$, not because of some magical pressure put on by the vendors to Hobbico. As I stated before, Hobbico has done shit like this forever....this is nothing new. They did it in the 80s, did it in the 90s when I worked at a hobby shop....did it when I ran a hobbyshop in 2000's. They have always used tower to undercut hobbyshops on their exclusive brands....

Low margin on kits is nothing new either, in fact it was the normal for a long time until Horizon bought Losi and invoked MAP along with not selling them dirt cheap by direct mail order. The idea behind it is to get you into the kit and make money as you break parts and/or upgrade.

Later EddieO

Originally Posted by stevem50

Tower is a subsidiary of hobbico, and the heads at hobbico had to be feeling the pressure from the smaller vendors getting the shaft from tower when another of their subsidiary companies, axial was getting sold cut rate. It's bad business when you slash your own price for no other reason than to move units on a product that will sell anyway.

I can see having a sale on a slow moving product, but making a new released and hard to get product unprofitable to sell is just stupid, there wasn't many out at first and they gave them away..


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[stevem50]

Well aren't you the smartest guy in the room..


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[EddieO]

Originally Posted by stevem50

Well aren't you the smartest guy in the room..


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I try

Seems to be the more likely reason

Hobbico Says It Can Not Make Payments For Its Stock Ownership Program | WICS

Can't even pay your promises....makes it hard to keep coupons to sell kits at a loss.

Later EddieO

[mikemcE]

Originally Posted by EddieO

I try



Seems to be the more likely reason



Hobbico Says It Can Not Make Payments For Its Stock Ownership Program | WICS



Can't even pay your promises....makes it hard to keep coupons to sell kits at a loss.



Later EddieO

Only delayed not unusual in an ESOP, must have profits to pay


Hang up and Drive

[JatoTheRipper]

Originally Posted by stevem50

I think that no coupons policy is to level the playing field as far as price goes..
Enough vendors probably got together and forced hobbico to stop tower from whoreing out the kits for cost.

You don't honestly believe that, do you?

Originally Posted by Alexander_0_1

The whole coupon topic needs to be dropped, I shop from a local place, I've traded the coupon shopping from "tower" for free shipping from my LHS, and if I can't get my parts shipped out immediately Wayne the shop manager always take care of me by sending me things that I might need like free lexan scissors, free blades for my hobby knife, or solder as soon as my stuff is shipped.

OK cool. Drop the coupon topic. Remove yourself from the discussion and move on. It's really that simple. It baffles me that people love to put their one and a half cents (not even worth two cents) into a discussion in which they have no interest.

[stevem50]

I know a guy at a major vendor who had a huge problem with it, maybe he and others finally got heard.. it was just a thought.. its just as easy to dump axial and sell vaterra, cmx, cross, etc.. if you aren't making any money on something who cares how many you sell.?



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[CM9000]

Originally Posted by stevem50

if you aren't making any money on something who cares how many you sell.?

a little off topic.. but not to far from the river.. if a company isn't making money on something, isn't that why they come out with new rigs? this applies to the 1:1 industry as well. the rock rey for example..

I don't think axial will ever go bankrupt. they are not that stupid.

[stevem50]

Originally Posted by CM9000

a little off topic.. but not to far from the river.. if a company isn't making money on something, isn't that why they come out with new rigs? this applies to the 1:1 industry as well. the rock rey for example..

I don't think axial will ever go bankrupt. they are not that stupid.

I meant the small vendors aren't making profit when competing against towers price, that's why I said there's other options that tower doesn't sell that could take axials place in smaller shops that are harder to find and could be more profitable for Joe-schmoe's hobby shop


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[WHITE-TRASH]

Originally Posted by CM9000

a little off topic.. but not to far from the river.. if a company isn't making money on something, isn't that why they come out with new rigs? this applies to the 1:1 industry as well. the rock rey for example..

I don't think axial will ever go bankrupt. they are not that stupid.

Holy fawking crap I don't think I've ever seen anyone more butthurt about a new rig release. Did the rock rey touch you in an inappropriate place or what?

[CM9000]

I don't think anybody could take axials place. there is too many people loyal to them as far as customers go, and if im not mistaken.. tower doesn't sell vp stuff.

[CM9000]

Originally Posted by WHITE-TRASH

Holy fawking crap I don't think I've ever seen anyone more butthurt about a new rig release. Did the rock rey touch you in an inappropriate place or what?

if I was butthurt horizon would know. lol