How Do They Stay In Business?

[sherbs]

I have been looking around for certain things and have noticed have many company's are out of so many common items of the Crawler/ Scale World. Ya can't sell apples from a empty apple cart! The out of stock and sold out is pretty significant for Axial, RC4WD, Dinky and RC Pit. I guess I'm wondering how a company can stay afloat with such poor inventory control? They all need to hire a inventory level person or get themselves a education on inventory levels. Based on a 100% retail sells 20% of their inventory 70 to 80% of the time and 80% of their inventory makes up the rest. When your 20% is out of stock you are in trouble.

[Ditchrat]

Originally Posted by sherbs

I have been looking around for certain things and have noticed have many company's are out of so many common items of the Crawler/ Scale World. Ya can't sell apples from a empty apple cart! The out of stock and sold out is pretty significant for Axial, RC4WD, Dinky and RC Pit. I guess I'm wondering how a company can stay afloat with such poor inventory control? They all need to hire a inventory level person or get themselves a education on inventory levels. Based on a 100% retail sells 20% of their inventory 70 to 80% of the time and 80% of their inventory makes up the rest. When your 20% is out of stock you are in trouble.

I wonder the same thing all the time.


If some of these companies only knew how many times I went on their websites placed $200.00 worth of stuff in a cart, then turned around and purchased it someplace else because they where out of stock of one or two important items they would be sick.

Paying for shipping twice is what gets me. Ebay, sucks, but most of the time I can get one item for the same price as an online store and get free shipping.

[chopfather]

Check RPP hobby. I have found RC4WD parts out of stock at the RC4WD website and find it in stock at RPP many times.

[EeePee]

Because this is a niche of a niche hobby and newbs don't realize this yet.

[sherbs]

Originally Posted by chopfather

Check RPP hobby. I have found RC4WD parts out of stock at the RC4WD website and find it in stock at RPP many times.

You are correct "chop" but when you have to split your order a few times you are getting killed on shipping.

[fr8cture]

I'm kinda confused how Dinky is being compared to Axial or RC4WD...

[Ditchrat]

Originally Posted by EeePee

Because this is a niche of a niche hobby and newbs don't realize this yet.

Who are the noobs, the consumers or cottage businesses?

[sherbs]

Originally Posted by EeePee

Because this is a niche of a niche hobby and newbs don't realize this yet.

To a point, Ex. I have been in business for 25 years+ in the single shot rifle field. I know going to a show what 20% of my merchandise is going to sell. This has been calculated from previous sale figures over the years. To make a profit and keep your regulars happy you have to have these items. There is not much more of a niche business than single shot black powder cartridge rifles and accoutrements. Unless there is panic buying of a certain item, back order should be under 5%.

[sherbs]

Originally Posted by fr8cture

I'm kinda confused how Dinky is being compared to Axial or RC4WD...

Just by the percentage of out of stock items.

[fr8cture]

Originally Posted by sherbs

Just by the percentage of out of stock items.

Yeah but I'm pretty sure they are ran out of a guys garage as a hobby.

[willyg1981]

All you guys in the states are pretty lucky really ,
The few scale / rc enthusiasts over here have to wait weeks to get stuff and then when it gets here we have to pay even more with the import costs , I recon iv spent about £60 just on import tax over the past few weeks from various orders ,
Let alone priority delivery ......
Or I go down the route of thieve bay and pay £50 roughly for a punisher shaft !!



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[justinart24]

You should check out the model railroading world, companies only make small batches, take pre orders years in advance...when they release most "good" stuff, its gone in hours or days. Most small companies don't want to stock pile inventory, because they would rather invest that money into the company for new tools, processes and machines to lower cost and increase profit for the next run.

[mikemcE]

One exception from this, dlux fabrication.
It's in stock or Erik will tell you when.



Hang up and Drive

[sherbs]

Originally Posted by mikemcE

One exception from this, dlux fabrication.
It's in stock or Erik will tell you when.



Hang up and Drive

And thus how a Business should be run. I was looking to spend just under $200.00 on front bumper a bumper mount a winch and a controller for a TF2. I had to order from 3 suppliers to get the stuff. Tower, RC4WD and a ebay seller. It is all common items, should have been able to order all from RC4WD, not so!

[sherbs]

Originally Posted by fr8cture

Yeah but I'm pretty sure they are ran out of a guys garage as a hobby.

Then I ask this, What is better? To make 50 items but only have 15 or 20 available at anytime. Or make 25 items and have them available all the time.
The all the time guy keeps going and expands when they can offer availability on a regular basis. The other guy in most cases gets fed up and closes.

[EeePee]

The "all the time guys" here don't have the overhead in their garage businesses.

Proline, Axial and uh… that's about it really, probably do but no one else.

I've seen more vendors here say forget this than succeed.

[donny8594]

I know it was mentioned that we are in a small world inside a small hobby. Tracking down parts makes this hobby unique.
If you dont like the suppliers buisness model, well start your own.

[EeePee]

What should I use to lock this Traxxas Stampede transmission?

Plastic driveshaft outputs with two set screws?

Home made links?

Running over your tuber chassis with your Chevy 2500, that you brazed to prove a point…

[Rotare]

Originally Posted by sherbs

I guess I'm wondering how a company can stay afloat with such poor inventory control?.

How?

Online store with low overheads, operating in a niche market with a large product line which I assume has high mark up from the wholesale price.

You either sell a lot of items at low margins, or sell less items at a higher margin. The fact that items are out of stock at times probably matters less in the second situation.

[Ditchrat]

Originally Posted by donny8594

If you dont like the suppliers buisness model, well start your own.

I get what you are saying, but If I don't like it I just won't buy from them. They are free to F@#$ up their business and not take my money.