Arrma going bust ?

[Fahd]

Full disclosure: I didn't read through 100% of the responses, but I saw a lot of people asking what parts were difficult to get. Since owning my Outcast, the only problem I've had is the wing falling off (resulting in me needing/wanting screws, nuts, and wing buttons). All three were backordered and I had to go elsewhere to get them. When I got the buttons, I just happened to find a place that had ONE left in stock, so I grabbed them. The screws/nuts, I had to get the sizes and order some from Ebay (I ordered 100 of each.)

I understand that's simple, but come on...screws and nuts on backorder when they only come 4 in a package? hahaha

With that said; the Outcast is too damn much fun to give up on. I'll still continue to be a loyal Arrma follower and user, crossing my fingers that things get better for them.

However...I can promise I'll get pissed when I have to wait 6 weeks for a part to come in and I end up with Arrma withdrawals.

 

[mrfurious40k]

Here's a couple points to ponder:

1. ARRMA is growing their lines and has offered several new high end cars in the past couple quarters. Things like that are huge capital investments that take awhile to recover from. If the books don't look good, that may be the reason. They need to sell all the new trucks they designed and built to make back their investment.

2. There aren't any spare parts because they are all being put into new production vehicles. Outcasts have been backordered pretty much since they launched. In order to meet demand for the complete trucks, they are going to commit every part they have on hand to building those trucks. Having spare parts for trucks you never sold doesn't make much sense, does it? Hobby people are impatient and fickle. If ARRMA doesn't have an Outcast to sell them, they'll buy the next truck like it from someone else.

3. ARRMA is part of a huge conglomerate. Some parts are doing great, Some may be suffering. The nice thing about that is that the ones doing great can keep the suffering ones afloat until things improve. Look at all the names under the Hobbico banner. ARRMA has a lot of help to get them through a rough patch.

 

[Tsimonster]

 

[72Z15SS]

That's sick, but in a FUNNY way...

 

[Hye]

I have also opted away from the X-maxx after hearing about them suing.

I did same. Was going to buy 8s x maxx and ordered kraton and Nero instead.

bahahaha!

 

[Browneye]

>snip

3. ARRMA is part of a huge conglomerate. Some parts are doing great, Some may be suffering. The nice thing about that is that the ones doing great can keep the suffering ones afloat until things improve. Look at all the names under the Hobbico banner. ARRMA has a lot of help to get them through a rough patch.

Been reading with interest the entire patent suit and resultant industry shock-waves.

Arrma is a UK based company that sells their product through Hobbico/Tower here in the US. Unless I just misunderstood it, they are not owned by Hobbico. And from what I can gather Hobbico/Tower aren't doing so well either, running their operation in the read, bleeding cash, and fighting a patent lawsuit. NONE of this bodes well for the brand, the cars, or the hobby.

Before I knew of ANY of this I was shopping for a new RC car at my LHS. Everywhere I went they said I should get a Traxxas Slash. But my LHS was the only one to show me ARRMA and the differences and so I took the plunge. I like the product well enough, but I don't have much faith in the longevity of either the company or it's distributor Hobbico. Oh well.

It's been interesting reading.

And now I want a SCT....hmmm...Slash or Senton...that is the question. LOL

 

[Steve]

So, Traxxas has sued Hobbico? Or Arrma?
Traxxas claims Arrma's use of the lay-down shock infringes upon Traxxas' patent.
I have heard Traxxas is suing Redcat and others for similar, but I have not researched nor confirmed.
Maybe Traxxas is suing everyone?
I'm not a lawyer, but have been through many business law classes, both undergraduate and post grad and been involved in corporate litigation, providing materials to the attorneys during suits..
This is my understanding, as a layman, no juris doctorate.

The most expensive area of litigation is patent infringement.
It drags out, which is expensive, [attorneys bill in 1:10 hour increments and exorbitant rates], and can take years.
According to my legal prof; "until a patent" has gone through litigation and upheld in court, it has no teeth".
Traxxas, I assume, has seen market pressure in many forms. Losing their piece of the pie, plus pressure to lower their prices, which hits their margin.
The hit to Traxxas' margin means, less money to spend on sponsoring events, R&D and capital purchases.
And most importantly, remember this is America, the upper management bonus program gets slashed or even eliminated.

As far as Hobbico's health or Arrma, that is a tough call.
They are privately held corporations and thus not required by the SEC to disclose their financials.

 

[Trapper]

Well, emailed Traxxas and let them know I'll never be purchasing anything from them again nor will anyone I know that is into the hobby. Let them know was due to this cancerous poop they are pulling too. Really glad I didn't buy an xmaxx now

 

[Steve]

Been reading with interest the entire patent suit and resultant industry shock-waves.

Arrma is a UK based company that sells their product through Hobbico/Tower here in the US. Unless I just misunderstood it, they are not owned by Hobbico. And from what I can gather Hobbico/Tower aren't doing so well either, running their operation in the read, bleeding cash, and fighting a patent lawsuit. NONE of this bodes well for the brand, the cars, or the hobby.

Before I knew of ANY of this I was shopping for a new RC car at my LHS. Everywhere I went they said I should get a Traxxas Slash. But my LHS was the only one to show me ARRMA and the differences and so I took the plunge. I like the product well enough, but I don't have much faith in the longevity of either the company or it's distributor Hobbico. Oh well.

It's been interesting reading.

And now I want a SCT....hmmm...Slash or Senton...that is the question. LOL

Where did you find "running in the 'read'" or "bleeding cash"?
I was not able to locate any published financials.

 

[Browneye]

Where did you find "running in the 'read'" or "bleeding cash"?
I was not able to locate any published financials.

Sorry, that was a typo, 'running in the RED' - means in debt. Both terms were sited in industry news articles I had run across - I don't have a way to reference them now, however my bet is if you dug a little you would find the same comments.

The industry is suffering a general slowdown - the claim is that kids are more interested in video games.

EDIT: a quick search on the term 'hobbico financial health' brought up this in results - it tends to confirm my comment: https://www.indeed.com/cmp/Hobbico/reviews

 

[mudman]

Man, that is really sad what those employees are saying about the company. I've been a customer there for many years and it makes me mad that I have given them so much $ then to hear about all that crap.

 

[Browneye]

Another interesting article here: http://www.uavexpertnews.com/2017/01/industry-giants-flounder/

 

[Steve]

Another interesting article here: http://www.uavexpertnews.com/2017/01/industry-giants-flounder/

I knew you typo'd, wasn't trolling the "read", I was questioning the statements of running in the red and bleeding cash.
[I'm an accountant.]
I was curious where you heard that info because I was not able to find it.
I even searched the university library for their financials and no luck.
One article you found shows some unhappy employees and there's no doubt some truth and some exaggeration.
I've read the same of my own employer on various sites.
No doubt the industry is in a slump, the initial cause was deemed there was a reduction of sales in the snow-belt, a slow start to the flying season. I'm in sun-belt, year-round RC weather.
The lawsuit no doubt used up cash, no one wins in those.
I find it odd for anyone to say it is a youth shift to video games, as they have been around for decades; why would the youth suddenly have a huge shift?
Most the RC-ers I see, are 30's up to 70's.
No doubt Amazon is edging in and the cheapie china brands are an issue.
As an accountant, when I see a claim, my instinct is to request a source, just how I'm wired.

 

[Aflan]

I am with the accountant.../me points @Steve ...

 

[Unusual RC]

Another interesting article here: http://www.uavexpertnews.com/2017/01/industry-giants-flounder/

What I always suspected is fact!
It is not only in th US. It is happening everywhere in the western world.

My idea is eventually everybody will buy online at the manufacturer. Nobody in between who has to make profit