Hobby King are coming!

[Allan Bowker]

HobbyKing has begun piloting retail store franchises according to an email I received from them. Not sure where any exist at the moment but it's only a matter of time before one of them land in the UK somewhere.

My first though was "oh no, another nail in the coffin to the local model shop (LMS)" but then I started to wonder if actually it might be a saviour.

 

If you LMS became a HK franchise would it boost their business?

Would such a franchise save a few ailing LMS?

Perhaps it could bring more people into the hobby?

Could be a double edged sword, what do you think?

 

 

EMAIL RECEIVED

In an ever increasing effort to drive more value into the R/C market HobbyKing has begun piloting retail store franchises in select regions around the globe, underscoring HobbyKing's commitment to the R/C industry.
Each store will retail both HobbyKing and other branded products and will also serve as a service center for warranty and technical support.
Products sold online can be serviced in-store as well as sent back to your local service center.
At a later stage 'HobbyKing Store Front's will be filling local internet orders and pre-ordering requested items from any one of HobbyKing's warehouses locally and abroad.
We hope that the HobbyKing Store Front network combined with increased service levels and a 24hr support desk (ETA May-15) will improve quality of service and ultimately customer satisfaction.

We will let you know via email the moment a store opens in your region, in the meantime if you have a local store that you would like to see carry our products please tell them to email us at [email protected]

Edited By Allan Bowker on 29/03/2011 11:40:50

Edited By David Ashby - RCME Administrator on 05/04/2011 11:54:53

[Tim Mackey]

Yeh, I got that one too - I expect UK will be low priority target TBH - more likely to have retail outlets in the countries where they have warehousing etc. ( HK, China, USA, Germany )

I cant see them being able to keep the prices quite so competitive, either with an existing retailer or new dedicated outlet - just wait until they calc the running costs of a "proper" retail store

Seems to me to be almost against the whole philosophy they set out with - keep costs very low by manufacturing / sourcing wholesale and then selling directly online.

I take it you also got the recent mailshot about the 2200 3s Lipos for around £5 ?

Amazing.

 

[Allan Bowker]

I missed the £5 Li-Po offer, but I think you are a better customer to them than me

[Steve W-O]

I don't think it will have much impact here.

 

I still order most thin gs from their home warehouse and not the German warehouse.

 

If they decided that people in the UK had to order from their agent in the UK they would shoot themselves in the foot.

[Erfolg]

I have wondered about the German Warehouse, is Germany a better location for low operating costs than the UK? Is the German operation a franchise?

 

As for the E-mail, are they looking perhaps for a UK warehousing operation similar to the German warehouse, rather than a simple retail high street franchise?

 

I would have thought that Eire would possibly be the best EU location, for low cost, both operations and profit retention, particularly if a franchise.

[Allan Bowker]

Here's a picture of perhaps their first store front as published in their email.

The location of this store is currently unknown

 

[Eamonn Fahey]

The Shop in Australia is now open.

 

HOBBY KING Store Front (Australia)

4/365 The Kingsway
Caringbah NSW 2229
(02) 9525 7540

Got the Info from Hobby King forum.

Eamonn.

[Erfolg]

Eamonn

 

Is there any idea of the type of operation, is it a warehouse/mail order or a retail outlet (a shop!)?

 

I would have thought that Eire would be a good place for a mail order operation, if the postal service is cost effective, with respect to much of the EU. The UK television suggests that premises are available in number at good prices at present in Eire. I guess the issue are all the other taxes that have to be born by business low enough now and in the future.

 

The UK seems intent on killing business, with constant cries to tax the rich, the atmosphere is wrong. I would not risk my money and time, if the state is to take the results of my labour and effort.

 

Germany appears to the EU outlet at present, is anything known about the operation?

[David Ashby - Moderator]

Here's the HK boss......

 

 

 

 

Edited By David Ashby - RCME Administrator on 05/04/2011 12:03:46

[Erfolg]

The videos are very interesting.

 

Surprisingly I liked the business model and the attitude towards manuals.

[GONZO]

With ref to previous comments on ordering from the HK German warehouse:- When it comes to large items like kits etc the postage from Hong Kong tends to be excessive, there is a greater risk of damage and getting caught by customs.

Last week, late Tuesday morning, I ordered one of the electric Mosquito kits from the German warehouse. Friday afternoon at 15:00 it arived. Shipping from Germay $16. If it had come from China it would have been $54. Additional cost of kit was approx $40. So, as you can see there is vertually nothing in it cost wise, its quicker, potentially less chance of damage and you can sleep easily with a clear mind that the customs will not be demanding additional money.

[Erfolg]

Gonzo

 

How do you establish the post cost from Germany, i only seem to get the Chinese post rates.

 

There have been a number of kits I have fancied, but the duty and post has put me of.

[GONZO]

Erfolg,

you need to get onto the HC Euro site HERE . When you put the item in your basket you can then get the shipping tables in the EU. (not all kits are available in EU warehouse).

If you want something thats not in stock (more likely than not) put it on your wish list, from the German warehouse, with an email notification. Popular items go v/quickly. I've been waiting since Christmas for the Mossi to come back in stock and got the email notification last Tuesday that 6 were in stock . Ordered it in the morning, by late afternoon all had gone - be quick or go without.

HTH

[Allan Bowker]

Thanks for posting the video David, I watched both parts, a real eye opener!

 

I presumed Hobby King was Chinese owned

[TonyS]

Interesting stuff. I was just browsing the HK site and was astounded by the low prices offered for various aircraft ARTF and kits. I was trying to work out what the catch was and though it might be shipping costs so I plonked a couple of things in my basket to see what the charges would be .... Then I noticed just how much stuff was on backorder - I havent counted but it must be 75-80% of the range!
Are they victims of their own success or simply trying to make their catalogue look wider than it is?
T

[Pete B]

They have a worldwide customer base, Tony, and with some very attractive prices, you have to get in quick. Just one tip - make sure the items you order are in stock - if you order something which is on backorder, the rest of your order is held until it can be completed, which can be months sometimes..............

 

Pete

[TonyS]

Just think what opportunities this suggest there are for manufacturers of planes kits etc with a clear indication that current supply just can't meet demand. Basic economics suggests that the prices are too low. How long do you think it will be before HK catch on?
T

[Erfolg]

HK have been going now for years.

 

There are some other model suppliers in the Far East, yet none as big as HK. I used to deal with Tendarni, who no longer seem to trade, their after sales service , with respect to issues, was excellent, beat most UK based model materials suppliers. In Malaysia there is Boon Chung.

 

I think HK are well turned on, I guess they are the Matalan of modeling.

 

I hope that the cosy marketing and distribution of the UK is given a kick up the whatever.

 

The great attraction of HK is not just price , but security via Paypal

 

Edited By Erfolg on 01/05/2011 11:55:34

[TonyS]

Understood Erfolg,

but I'm talking about the manufacturers not distributors. Clearly the manufacturers can't keep pace with HK's demand hence so many items on backorder. As there is clearly a demand exceeds supply situation you'd think that HK could increase prices (simple supply demand pricing) ?

T

 

PS Absolutely agree re Paypal - not just more secure but so quick to order as all the delivery details are stored with Paypal. It does make spending money too easy though.

[Erfolg]

With you now Tony.

 

The manufacturers seem a conundrum, in most respects it is hard to understand what is happening. Many of the items such as electric motors, are available in the UK with a different badge, with no apparent supply problems, the same is often true with the general consumables.

 

Could the issue be one of cash flow HK, and the re-ordering strategy? Giant Cod are similar in this respect. Most things go fast, and take some time to reappear, if they do.

 

 

In many ways the situation for many UK traders at the retail level seems different, items hanging about on the shelf/boards for months if not years.

 

UK distributors could be similar to HK in that they seem appear to import a batch, push it into the retail chain and once gone that is it. Being not as transparent as HK, in being open about stock levels, we are probably not as aware as with the HK.

 

I also suspect that some of the supplies come mainly from none modeling businesses. Many years ago I worked for a company producing Injection Mouldings. The company had differing categories of customers, those where guaranteed numbers per year of mouldings and batch size, specific guaranteed product supply periods, through to the tooling only went on when a date and price was agreed. Even the tooling could be owned by us, part share or customer owned tooling. Could arrangements such as this be part of the supply issues?

 

 

[TonyS]

Good points.

 

Your point on the parts availability is right and the situation is peculiar to say the least. There is a strange culture in China / HK though re production. If, for example they are producing finished products made up of many components the Chinese think it's perfectly fine to simply substitute parts if stocks of one component run out. This kind of thing is much less acceptable over here. They have a bit of a problem doing it with things like motors as it's hard to sell motor B if you've agreed to sell motor A. Recently I discovered that the supplier had switched motors in one ARTF unbeknown to Ripmax.

It seems that factories do large production runs then switch to other things leaving the supply of the first product to simply dry-up. Maybe this is the issue with the planes? It may well be, as you suggest, that there are a limited no of factories producing planes/kits and they do a run of one thing then switch to others. As HK and others run out of what turned out to be a popular product there isn't any continued production to take further stock from.

 

HK must be very frustrated thinking about all the lost sales.

 

The situation with UK hobby stores is a bit different though, particularly those with no internet presence. A good example is the shop at my local club. It's run more as a hobby than a business and has a very low throughput. The same kits have been on the shelves since I joined two years ago. The only things that move quickly are small stocks of 'current' products such as Parkzone Vapours and E-Flight Blade helis and this is down to a dedicated few who don't mind paying a bit over the odds to keep the club going.

 

T

 

[Allan Bowker]

Mystery ESC's & motors were a problem for the Ripmax WOT 4 Foam-E.

I'm on my 4th !

[James Hindle]

I know there are issues to LMS with HobbyKing but you have to hand it to them and their latest development in producing 'honest' promotion videos for the planes they carry, they recently lured Scott Cuppello (formerly of BRC) over to HK, his videos are classic and IMHO something our local shops could learn a thing ot two from.

 

 

[Allan Bowker]

Yes, I nearly fell off my chair when I saw Scott appear on my screen.

I was very happy to see him and look forward to seeing more of the honest videos he does for HK.

 

The US based FliteTest videos are good too, they are also working with HK.

[David Ashby - Moderator]

Do you have any links to those Allan?