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It may not be just HK that is changing things.


Erfolg
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When my own business(electro hydraulics) started to feel the Tiger economy pinch I set up a deal with some Turkish and Eastern European manufacturers in an effort to remain competitive. Bad move. Although the 'look a like' components meant I could initially retain a big enough margin to survive and the quality was comparable with the Asian kit, it was not up to the build quality of the British, American and Italian products I originally supplied but didn't make enough profit on. Result , good initial sales, but then came the 'faulty returned goods' With little or no after sales back up from the manufacturers I had to wear the cost of replacement items. Financially devastating! Do you think this is more or less the same scenario that the LMS is up against?

Tangey

Edited By Tangental on 13/02/2013 19:41:06

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Tangental

I am not sure you are comparing like with like even conceptually. Hydraulic systems are invariably cylinders, valves, pipes. Many variations in sizes, but much the same be it Clippard, Mettmann, Baldwin, but made in different counties.

Much of what the LMS stocks, originates from the same area of the world. Particularly with airframes. The brand name may sound as if it is from the USA, such as Great Planes, some may sound German, such as Graupner or even Multiplex. Even electric motors, only a select few, such as AXI, Pletenberg, MVVS, do not owe their birthplace to the far east.

The much vaunted notion of specialist back up is the construct of the PR of the model trade. In most cases many MS know no more than the average modeller. I have more faith in the feed back from modelling customers.

Much is made of the after sales of the UK established model trade. I am one of the many whose complaints and problems have been ignored by UK suppliers, as well as the MS. Now if you ask the question, how many substandard goods and services have you had with some of shore traders, well, none. An example I ordered some servos from a company called Tendari, they did not come. I was prepared to write the order off, the cost was so low. I then received an E-mail, saying they had been returned to them. Thy sorted the issue out, sent replacements and some unsolicited additions. With the UK distributor, the response was, oh, you have had it for some time (2 weeks approx). nothing to do with us ( a big name distributor).

If we like it or not so much is made and originates in China. Even my Futaba receivers have a made in China sticker, not the expected Japan, as envisaged by the price.

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Erfolg, thank you for your well informed comments. Overall, I still think that we are pretty well served, but I don't deny that things go awry and because in the wider scheme of things we are a small market with expectations of opportunity to purchase from a very wide choice of relatively sophisticated products, we are likely to experience some inconsistencies every now and then. I'm interested in your observations about GS, because I previously bought from GC and haven't seen any difference, but that may simply be the luck of the draw based on the items I purchased at the time!

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If you substitute "distributor" for "LMS" in your question Tangental then yes I think you are right. I think that many of the problems distributors have are just like you describe. Traditionally they worked with relatively local suppliers and made a margin. Now their supply chain stretches 10,000 miles into a system where frankly its very difficult to work out who is making what with many big names and small names effectively being made in the same factory. I think they too often have to bear the cost of returns themselves.

BEB

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Hi, just a quick footnote to that BEB - the way manufacture works in my industry I would imagine is very similar to that of the modelling world. Although some companies own their own factories in China most don't. In the case of safety footwear it is all dictated by the larger markets - ie USA. A large US company will place an order for a style of boot with a factory in China. That factory is not big enough to cope with the large order and enlist the help of other smaller factries. Each factory gets a copy of the pattern and produce a proportion of the order. Now each of the factories have the pattern set up they will sell to smaller markets - ie UK etc. Each UK importer will have their version of the boot branded with their name but it is essentially the same thing. Each UK importer may order from different factories but get more or less the same product. We see a massive difference in the wholesale price of these items - sometimes as much as £5 per pair (on a retail price of £30)

P

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BBC, I think this is a universal story. The last time I went to the USA, large record/DVD etc. shops had disappeared, leaving independant traders, dealing in primarily second hand (pre-owned) media of all types. The same story has been repeated in the UK, albeit years later, all the big DVD type outlets, collapsing into administration.

Although I know BEB and a few others feel passionately about the LMS, I do think there are some parallels. Other than there are no big MS chains, just small traders. The problem being, there are to many MS, relative to the money being spent, and the costs of trading.

I am a little disappointed and surprised, that no studies have been made and published with respect to this sector. A few others and myself have done fag packet type calculations, just nothing in depth, that has been made public.

I was thinking last night, if I were, say Ripmax. I might try selling via Amazon, surreptitiously, using a front company. Just to see if their targeted offer programmes did pull in sufficient business, to be viable. Allowing them to be both Distributor/Importer and retailer.

E-Bay only capturing sales with those who have an interest in buying, rather than being proactive. Also I would imagine that sales are of small volume per line, that is one or two and that the items are indivudually offered.

Edited By Erfolg on 14/02/2013 11:52:26

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Posted by Erfolg on 14/02/2013 11:48:57:

I was thinking last night, if I were, say Ripmax. I might try selling via Amazon, surreptitiously, using a front company. Just to see if their targeted offer programmes did pull in sufficient business, to be viable. Allowing them to be both Distributor/Importer and retailer.

I was under the impression that they already were. Someone correct me if I'm wrong, but I was told quite some time ago that Ripmax owned THESE stores.

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This thread was reopened following a request from a member. It was reopened on the understanding that the topic would move on. You are right Simon - what you were airing was not approriate, will be "dissapear" as you put it and result in the thread being locked again.

I am closing the thread at least unitil I can consult with other Mods on what actions to take.

BEB

Edited By Biggles' Elder Brother - Moderator on 15/02/2013 00:52:06

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