That leads into a question I like to ask of anybody looking to start (acquiring is close enough in this case) a company. Why? What is it that you have to offer that's different from what everybody else is offering? Sure, my tendency to ask "Why are you doing this" probably stems from my gut reaction of "Why the hell would you do this?!" yet I think it's a valid question all the same.
I'm sure we all think we have something different to offer. Why do our wives marry us instead of that other guy? Why are there new bands starting up every day in every city? We had Jimi Hendrix, we don't need another guitar hero... Or do we?
Unless your company churns out 3/4FNC kits
and nothing else, I don't think you do have anything to offer. You will never compete with a company the size of Estes on production costs. Companies that produce 3/4FNC stuff need another product line to be interesting.
Estes brings people into the hobby, can't deny that. They also make safe and reliable motors available at a cost that none of us could ever match, with the exception of someone the size of Aerotech. Motors also make money, much more money than kits, but the investment costs in equipment and meeting regulations means we don't see a plethora of motor manufacturers.
But people do want something different. Hell, even Kevlar recovery was exotic 20 years ago. Quest do it, Estes still don't. Is the reason that it'd better not to, or that 2 feet of Kevlar costs money? I don't really have the answer.
Baffles are different. Small manufacturers do it, Estes, for the main part, doesn't.
How many rear eject kits come from the big manufacturers? How many parachute variations (X-form, gliding, hemispherical)?
Small run kit manufacturers are different. They worry less about their bottom line because it isn't their main source of income. It's a passion.
Note, I'm not saying that large manufacturers lack passion, but that their passion must be tempered with economic restraint. If I sell 20 kits of one design, I consider it a major hit. If Estes sell 5,000 of one design in the same period it's a major flop.
I sold over 100 vintage kits over two years to fund Cape Byron Rocketry. In fact, the original idea was to sell the kit collection and start trials motorcycle riding. But the passion those old kits gave me... amazing. I dragged out my old note books (which were destined for the bin) and started designing. Remaking old contacts and making new ones. Getting out there and actually flying again.
I'm sure Estes and Quest love small run kit producers. We aren't competing against them and
our customers are buying
their motors.
Win for us, win for them, win for customers.
Anyhoo... pardon the early morning ramble. I need a second cup of coffee...