Jennysrc and kitbreakers. They get a deal?

[bladefan]

Was wondering if kitbreakers get a deal? for example I read somewhere traxxas had cracked down on those guys because they didn’t want kit breakers to ruin parts prices at the hobby shop. It wouldn’t surprise me if horizon started or has been enforcing similar practice. Do they just buy retail?

 

[dure16]

It wouldn’t be hard to strike up a deal with a local hobby shop for bulk purchasing. Or they might even do it with HH directly.

I’d guess they pay a price somewhere between retail and wholesale.

 

[#ARRMArcfanboy4life]

Was wondering if kitbreakers get a deal? for example I read somewhere traxxas had cracked down on those guys because they didn’t want kit breakers to ruin parts prices at the hobby shop. It wouldn’t surprise me if horizon started or has been enforcing similar practice. Do they just buy retail?

I have been wondering that myself. If they pay retail, I am guessing they wait for sales and the like. They might also have a deal with the LHS to buy x amount of dollars for a certain % off.
Edit: @dure16 I didn't see your post until I posted mine.

 

[KnowAir]

No idea what places like JRC pay for the vehicles, but definitely believe without question that TRX and HH would stop em if they could.

 

[Arrma15T68]

I always figured they were independent. Traxxas I could see being passed and stopping it if they could.

 

[Tex Koder]

They are more than likely buying in bulk When there's a Sale..
or leveraging their past quantity purchases with their local hobby shops to negotiating a sweeter deal.
And if that's the case then there's NO way TrapXXus or HH would find out unless the shop owner blabbers about it or something.. Because all Corporate would know/think is that a particular hobby shop is killing it with multiple sales of their buggies or trucks...
It's a loop hole.

Now, I'm guessing Ted at Jenny's is doing one step better by using his website's "Notify Me" function as a direct indicator on what to buy when he sees a particular part(S) are being requested/notified..
It's his preemptive strike method to having a realtime heads up on his competition.. (verses his competitors just posting whatever one or two vehicles they happen to have breakin'ed and listed the parts ,scattered about online...

 

[bladefan]

It would make sense that they use multiple hobby shops. Plus they have been around a long time. It seems to me that it would be easy to see if they were ordering from shop (from manufacture perspective). I think there are not enough sales for a business model to work.

 

[Tex Koder]

They been around since the mid 2000's..
I'd say that their business model works.

 

[SrC]

No idea what places like JRC pay for the vehicles, but definitely believe without question that TRX and HH would stop em if they could.

They can't stop them. It is fair to do what you want with anything you buy. Even Kitbreaking and selling.
There are many ways to buy these in quantity at discounted pricing.
There is a grey market out there.
I think that Kitbreaking for HH can be a good thing for them.
Depends how you look at it and somehow just absorb the kitbreaking culture into your business model.
I always felt kitbreaking keeps and brings many into this hobby who could never really afford it. Still supports the brand popularity.
If you notice, JennysRC only sells the most popular brand parts. A well calculated business model. I remember when Jennys wasn't even Global. And when you did not mention the term Kit breaking at all. Like it was something bad or not spoken of. Even here on AF. Guys would PM each other and spread the word, to get them.
Remember, that for every Kit that is bought and broken, becomes a unit Sold for HH. Kind of a win win if you really think about it. More volume sold =more bottom line. And gathers more market share for the brand.
HH makes alot of profit on these.
If we really knew the actual cost to make these rigs, we would cry in disbelief.
And for all we know, JennysRC just might have a direct account with HH. Who really knows?
Could even be a subbed out LHS account.
I would keep that on the DL if it were my successful business.
I remember when Arrma was not well known. Now everyone knows what an Arrma rig is. I used to be surrounded by TRX stuff when out bashing in the parks. Now I see tons of Typhons and Kratons out there. The Trx stuff disappearing. I mostly see X-Maxx's out there now. Never seen a 1/5 8s rigs
however.
I am sure TRX initially did not like kitbreakers , but they had no choice but to eventually accept it. It's just part of the RC culture these days.

 

[#ARRMArcfanboy4life]

As a side note, does JRC send any order confirmation? I on Black Friday ordered almost $100 of stuff from Ted and I was wondering when it is supposed to arrive.

 

[KnowAir]

As a side note, does JRC send any order confirmation? I on Black Friday ordered almost $100 of stuff from Ted and I was wondering when it is supposed to arrive.

Should get an email confirmation (immediately), it's computer generated I think. Then a shipping notification when it does ship (couple days). Solid folks in my experience. JRC rules!!

 

[Tex Koder]

As a side note, does JRC send any order confirmation? I on Black Friday ordered almost $100 of stuff from Ted and I was wondering when it is supposed to arrive.

Yes, they do.

 

[#ARRMArcfanboy4life]

Should get an email confirmation (immediately), it's computer generated I think. Then a shipping notification when it does ship (couple days). Solid folks in my experience. JRC rules!!

I don't think I got one. I will probably contact Ted if the order doesn't arrive in a week or so.

 

[KnowAir]

I don't think I got one. I will probably contact Ted if the order doesn't arrive in a week or so.

I'd suggest reaching out sooner if you didn't at least receive an order confirmation..those parts could already be in someone elses rc by now,LOL It's busy season for JRC I'd guess, but that shouldn't hold up an auto confirmation. Check your spam box.

 

[#ARRMArcfanboy4life]

I'd suggest reaching out sooner if you didn't at least receive an order confirmation..those parts could already be in someone elses rc by now,LOL It's busy season for JRC I'd guess, but that shouldn't hold up an auto confirmation. Check your spam box.

I checked the junk folder, it arrived at the P.O box.

 

[bladefan]

They been around since the mid 2000's..
I'd say that their business model works.

Haha yes u r right. their business model clearly works and they’re probably doing very well. I meant that they don’t rely on markdown sales from vendors

 

[KnowAir]

I checked the junk folder, it arrived at the P.O box.

Niice! That's a trick right there, how'd you setup ur PO box to catch spam?

 

[bladefan]

They can't stop them. It is fair to do what you want with anything you buy. Even Kitbreaking and selling.
There are many ways to buy these in quantity at discounted pricing.
There is a grey market out there.
I think that Kitbreaking for HH can be a good thing for them.
Depends how you look at it and somehow just absorb the kitbreaking culture into your business model.
I always felt kitbreaking keeps and brings many into this hobby who could never really afford it. Still supports the brand popularity.
If you notice, JennysRC only sells the most popular brand parts. A well calculated business model. I remember when Jennys wasn't even Global. And when you did not mention the term Kit breaking at all. Like it was something bad or not spoken of. Even here on AF. Guys would PM each other and spread the word, to get them.
Remember, that for every Kit that is bought and broken, becomes a unit Sold for HH. Kind of a win win if you really think about it. More volume sold =more bottom line. And gathers more market share for the brand.
HH makes alot of profit on these.
If we really knew the actual cost to make these rigs, we would cry in disbelief.
And for all we know, JennysRC just might have a direct account with HH. Who really knows?
Could even be a subbed out LHS account.
I would keep that on the DL if it were my successful business.
I remember when Arrma was not well known. Now everyone knows what an Arrma rig is. I used to be surrounded by TRX stuff when out bashing in the parks. Now I see tons of Typhons and Kratons out there. The Trx stuff disappearing. I mostly see Xl-Maxx's out there now. Never seen a 1/5 8s rigs
however.
I am sure TRX initially did not like kitbreakers , but they had no choice but to eventually accept it. It's just part of the RC culture these days.

Definitely keep it on the DL if it’s working for you. For HH and Trax, a sale is a sale. as I think about it that’s the bottom line. HH and Trax prolly don’t really care too much but that have to at least portray to the many LHS that they do some type of policing. Also the LHS help support their sales, advertising and customers so it makes sense to keep them happy if they can.
I personally don’t believe they have any interest in supporting kitbreakers or people who can barely afford the hobby with discounted parts. If it’s a side effect of kitbreaking that’s just the way it is for them.

 

[KnowAir]

I'd guess the LHS would have more dislike for kitbreakers than the manufacturers. It's pretty mind boggling to look at what an rc would cost to build from even JRC parts, LHS? Forget it!! Same can be applied to many items, take a look at parts costs for a sport bike, fairings and fenders are easily a couple thousand from the dealer.. it's why the DMV wants to see receipts for all parts purchased to repair a totalled bike. Including VIN #'s for any used parts purchased. It's big business, stolen bikes, and the parts that come from them..cars too.

 

[Hector_Fisher]

I remember someone pointed out to me a while back that if you add up to building a whole car with jenny's parts, the price doesn't work out in your favor. Like it's significantly more expensive to build a jenny's car than buy new. That's likely how they make the money to stay in business.