HobbyTown USA 50% off sale

[Lugnut56]

I was recently in the local HobbyTown and all rocket kits and supplies are 50% off. I was talking with one of the sales guys and asked if they were closing out the rocket kits and supplies and he said yes, but it wasn't their choice. According to him it was due to the conditions Estes was placing on them. Whatever the reason, if you have one nearby and need LPR rocket supplies (Estes & Ouest) you might want to check them out. Got a few different size Q-Jets and a couple LP kits at 50% off.

 

[Bill S]

Local one near Harrisburg PA doesn't show anything that indicates they are putting the Estes stuff on sale.

 

[Lugnut56]

I'm in Spokane WA. I didn't think to ask the associate if this was company-wide change but just assumed it was from the way he described it (you know what they say about assuming things).

 

[mh9162013]

According to him it was due to the conditions Estes was placing on them.

What conditions are those?

 

[Lugnut56]

He wasn't specific with details, but he did mention Estes was favoring on-line dealers over hobby shops. Now keep in mind that the guy I was talking with wasn't a high-level manager. When he was telling me about the changes, I felt this didn't sound like a good business decision (he did tell me they actually did a fair amount of rocket related business, although I noticed their rocket kit selection was almost half what it was a year ago). The only thing I can tell you with certainty is the local store appears to be closing out all rocket related items.

 

[Art Upton]

.

 

[cbrarick]

Estes hasn't changed their policies recently.

 

[Tyeeking]

Hobby Town’s are a franchise. Each store is independently owned and has a great deal of freedom as to which lines they choose to stock and how deep they stock them. They will cater to what their local market is interested in.

 

[Art Upton]

At first I thought you were talking about Hobby Lobby, but you are Hobby Town. Our Hobby Town had a full Isle of rocket stuff .. then they moved and now have only a small patch peg board at the end of an Isle and many spots are empty.

I think the issue is they can't sell at MSRP [as they always did here] and so are just letting it sell out???

 

[ShadowSpire48]

Both of our HobbyTown stores have more or less ditched Estes (and we have the largest store in the country of which also used to sell LOC within the last few years). Seems in line with the decisions Estes has made this year. First the MSRP lock thing which more-or-less got rid of ACSupply (if you will note, they don't have any newer stuff from this year) and then cutting margins and limiting what retailers can sell (these were direct words from a retailer)

 

[Banzai88]

No such issue at my location in VA Beach. In fact, they just restocked fully for Christmas.

 

[Rob Campbell]

Both of our HobbyTown stores have more or less ditched Estes (and we have the largest store in the country of which also used to sell LOC within the last few years). Seems in line with the decisions Estes has made this year. First the MSRP lock thing which more-or-less got rid of ACSupply (if you will note, they don't have any newer stuff from this year) and then cutting margins and limiting what retailers can sell (these were direct words from a retailer)

Estes is shooting themselves in both feet. They need their retailers to keep their products in the public's collective eye. How many got into rocketry because.mom or dad bought their kid an Estes starter set for Christmas or a birthday?

 

[Initiator001]

Estes hasn't changed their policies recently.

A few weeks ago Estes notified hobby distributors that the discount rate that Estes sold product to distributors was being cut 10%. This meant hobby distributors would cut the discount rate they sold Estes products to hobby shops/retailers. This meant that hobby shops would make less profit when selling Estes products.

Traditionally, in the hobby industry the hobby distributor is king. If a hobby manufacturer does not meet/agree to the distributor terms then they will not receive orders. Distributors set the discount percentages and hobby manufacturers must accept them or have no sales.

Not sure what's going on in Penrose.

 

[roytyson]

Spoke with our loacal HobbyTown, and they are not getting out of Estes. So if its happening, its local/regional.

 

[bad_idea]

A few weeks ago Estes notified hobby distributors that the discount rate that Estes sold product to distributors was being cut 10%. This meant hobby distributors would cut the discount rate they sold Estes products to hobby shops/retailers. This meant that hobby shops would make less profit when selling Estes products.

Thanks for the details. I'd read that something had happened, but I hadn't seen exactly what. Will be interesting to see what happens at AC Supply, seeing as they have been stocking more and more Quest products ever since Estes originally announced MAP.

 

[SolarYellow]

A few weeks ago Estes notified hobby distributors that the discount rate that Estes sold product to distributors was being cut 10%. This meant hobby distributors would cut the discount rate they sold Estes products to hobby shops/retailers. This meant that hobby shops would make less profit when selling Estes products.

And if I'm a retailer, I probably buy Estes stuff at something like what ACSupply sells them at. So cut 10 percent out of that 30 percent, and Estes stuff in my store is 33% less effective at paying for the space in my shop and all the overhead behind it. So I'm looking for alternatives, or just dropping rockets.