All you vendors "not getting rich" in the hobby rocketry business are clearly doing something wrong! :wink:
It is tough being a vendor in this business because of MANUFACTURERS COMPETING WITH VENDORS/DEALERS
I drag raced motorcycles until recently to concentrate more on bigger and more complicated-designed rockets.
Less than half of the racing manufacturers actually sold to the public instead relying on their dealer network.
The ones that did sell direct sold their product at retail price. Some started doing a slight discount for racers but it was such that it did not hurt the dealer because they could still compete in the market.
THAT is how you SUPPORT your dealer network.
That way manufacturers could concentrate designing and building their products. More products hit the dealer network, the inventory meets the demand, everyone makes a living and no one missed a race.
Let's go to the hobby industry. I never saw so many manufacturers compete with their own dealers, it's insane.
So Performance Rocketry starts around 2004, 2005 and makes a great product. He tries to keep the demand happy. He is a master of the manufacturing process, he built hundreds of molds, designed new rockets, made awesome nose cones and the G-10 tubes he rolled were perfect: just the right amount of rolled cloth and epoxy.
THE GHOST WAREHOUSES
All that talk about helping someone else in the business, it was all a ploy to take away sales from the dealers.
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As you see he can't make up his mind if he sells you from Performance Rocketry, ProLine, Rocketry Warehouse, etc.
After spending so much time marketing and running the direct sales "on the side", now the manufacturing slows. Now it's time to go elsewhere for product manufacturing. When you over-sell, now you can't fill orders. There are countless folks that never got their parts. Others still waiting on a kit. Some just gave up and went to another product.
So when you see that awesome half-price kit on BF, go ask your local dealer and ask him why he can't get parts or kits from you-know-who. You want to roll the dice and get one in 3-6 months, go for it. You say "Because my dealer doesn't have the stuff I want" WHY? READ ABOVE, it's a vicious cycle that just gets worse.
How many of you missed that once-a-year launch because of this. That $80 kit isn't worth a lot if you have to wait another year to fly it.
Don't get me wrong, a BF sale is a great marketing tool and I would support it as long as the inventory and dealers don't suffer because of it.
There are motor and manufacturing companies that compete AGAINST their dealers. They sell direct at a deep discount. They make any and everybody a dealer if they have $3,000, it's shameful. There are as many dealers as there are Dunkin' Donuts in Connecticut. Some dealers spend enough and become a distributor. You think it is so they can support the dealer network, nope, just so they get a better discount, then sell at an even lower price to take sales from other dealers. If you become a distributor, have enough cash flow for an inventory to supply the dealers with most of what they need.
I considered joining forces with a dealer and knock it out the park. The problem is I would never have the non-competing cooperation from enough manufacturers.
I am glad to hear that Rocketry Warehouse is "Under New Management" Mad Cow rocketry will do just fine, he has a great business model.
Make sure you get a "5-year non-competing" clause signed and notarized.
