I am thinking of opening my own RC car webshop in the UK. It seems like with Arrma, you CAN NOT just have a webshop. what the heck?

[bukshypro]

Yeah that's why it's a big ask for a discount from a hobby shop (sponsorship) because that means they essential make nothing off you.

Most of those discounts are factory rebates. 30% off on a kit is a steal of a deal

I should have bought 10x Arrma Granites when they were £319 then

 

[morrjr71]

But how do they get wholesale prices on Arrma/horizon/Traxxas cars??

You've got to remember that with a few exceptions like Walmart and Amazon, there are three tiers in the sale of most RC vehicles: manufacturer, wholesaler, and retailer. Each level makes a profit. Jenny's might not get vehicles direct from the manufacturer, but they might get their vehicles from a wholesaler at wholesale prices.

I know my local RC shop buys from a couple of large distributors. They don't buy directly from Traxxas or Arrma.

 

[bukshypro]

You've got to remember that with a few exceptions like Walmart and Amazon, there are three tiers in the sale of most RC vehicles: manufacturer, wholesaler, and retailer. Each level makes a profit. Jenny's might not get vehicles direct from the manufacturer, but they might get their vehicles from a wholesaler at wholesale prices.

I know my local RC shop buys from a couple of large distributors. They don't buy directly from Traxxas or Arrma.

Thats the problem in the UK. Only one company sells them, no other wholesalers

 

[Tex Koder]

But how do they get wholesale prices on Arrma/horizon/Traxxas cars??

You've got to remember that with a few exceptions like Walmart and Amazon, there are three tiers in the sale of most RC vehicles: manufacturer, wholesaler, and retailer. Each level makes a profit. Jenny's might not get vehicles direct from the manufacturer, but they might get their vehicles from a wholesaler at wholesale prices.

I know my local RC shop buys from a couple of large distributors. They don't buy directly from Traxxas or Arrma.

Keep in mind, these few primary manufacturers usually have a couple of large distributors who have the warehouse space (in different regions) and have negotiated contracts to obtain wholesale pricing.
Unless you have the capital to buy in Large bulk - models and their respective replacement parts..
You will not be made aware of these wholesalers nor their discounted prices << also these discounted prices are more than likely in tiers..
Meaning steeper discounts for higher quantity purchased.

 

[ross_jsy]

The problem I see it is you are up against the big guys like modelsport, wheelspin, RCGeeks etc. Have a look at pricing on all of them and they are very close, if not the same. They buy from a handful of distributors, and margins are thin in this market so you will struggle to differentiate from other retailers with pricing to drive sales.

My advice would be become a UK re-seller for a number of aftermarket parts that can be a pain to source in the UK (much like Bad Touch Breakers do for m2c parts). Keep a relatively low inventory at the start, build up sales via forum marketing and investing in SEO, then you can start considering branching out inventory into general spares and full models/kits IF your business is sustainable and you can hit those wholesale minimum orders for mainstream manufacturers.

Running a business like this doesn't necessarily take a lot of capital or space. A spare room for storage, a small packing desk, a shopify (or similar) store and a customer-centric approach will help establish your business. But don't go dumping your life savings into a load of stock that could well sit there for ever. It is a hobby with the latest and greatest getting released every other week. Even the big boys aren't going to be sat on warehouses full of parts. Just look how much is listed as supplier stock available.

I co-own a business that started as a .co.uk and coming up to 2 years ago we opened a brick and mortar, with both growing and growing. My biggest worry is, like it or not we are screaming into a recession. Luxury hobbies are the first thing people cut back on. Would I be launching a business reliant on disposable income in this climate? Probably not dude