Granite Why did team durango go out of business

[Rcdude99]

Hi there i just had a question of why did team durango go out of business

 

[Notorious J]

Hi there i just had a question of why did team durango go out of business

If you have the time, go watch the YouTube videos by @Aussie RC Playground when Vas interviewed the owner of Arrma. It's a three part series and the demise of Team Durango is discussed.

 

[crimsonfancy]

If you have the time, go watch the YouTube videos by @Aussie RC Playground when Vas interviewed the owner of Arrma. It's a three part series and the demise of Team Durango is discussed.

Here's part one.

Part two

Part three

I don't recall the Team Durango talk but thought I'd help being on my laptop in the shop and can find quicker than trying to use youtube's bad phone app.

 

[Rcdude99]

So i still cant find why team durango went out of buisness

 

[Notorious J]

I cant really find why td went out of business in those videos so can u tell me

Simple. Team Durango was a race set up and not as lucrative as rtr. When Durango merged with Hobbico, they needed to make a more marketable platform, and Arrma was invented. Eventually Hobbico went bankrupt as well and Arrma was acquired by Horizon hobby. Many of the early Arrma rigs were based on the Durango line.

 

[Rcdude99]

So durango went out because horizon hobby did not buy them

 

[Notorious J]

So durango went out because horizon hobby did not buy them

Read what I wrote more carefully

 

[Rcdude99]

Im still having trouble understanding it so they went out because hobbico went bankrupt

 

[Notorious J]

So durango went out because horizon hobby did not buy them

And please watch the videos again. The subject was mentioned, although not in great length. You can also use wikipedia to find this information, as many of us have in the past. https://www.google.ca/url?sa=t&sour...FjAAegQIAhAB&usg=AOvVaw3J1P02NdC8CTLagUfpsWj5

 

[Rcdude99]

I still cant find anything so they went out because it was a race set up and race set ups are not popular anymore i take it

 

[crimsonfancy]

Basically, it didn't make sense for Team Durango to stay in business when they weren't making money.
Race setups are popular but maybe Team Durango didn't have enough of the market share to compete with most popular established brands. Sometimes companies still go out of business even though they make a great product. Even when there is a fantastic product, without sales and cost control, the product doesn't make it.

 

[Lazy Bushman]

Like 99% of businesses that go out of business....lack of profit

 

[crimsonfancy]

Some companies have an inferior product and spend a larger portion of their budget to marketing. They may find it easier to convince people that they have a good product than to spend the money to engineer a better product.

 

[Rcdude99]

Was there a reason team durango was lacking profit

 

[crimsonfancy]

Was there a reason team durango was lacking profit

Maybe they didn't have the budget for marketing like other brands do.

 

[crimsonfancy]

Or, maybe they created a product that cost too much to the consumer so they priced themselves out of the market.

 

[Notorious J]

Was there a reason team durango was lacking profit

Is there a reason you think that we, a bunch of rc hobbyists, can answer this question confidently? Only the owners of Arrma, Hobbico, Team Durango and Horizon can give full details. I posted the link to wikipedia, which is the source that we would get our information. As you did in your previous thread, you have asked a question that no one here could answer conclusively. I suggest you write a letter with your query and send it to Jason Dearden. He is the owner and CEO of Arrma, and the original starter of Team Durango. Please avoid asking these types of questions moving forward. Forums are not encyclopedias. If you want answers to such specific questions, you will need to research closer to the source, and not third party outlets such as this one. If you want information on how to change a part on a Arrma, assuming that one day you will own one, the forum is a great place to research this type of thing. Even then, there is a search function at the top of each page, and learning how to use it will save yourself, and the rest of the good members, a considerable amount of time. You do not need to start a new thread each time you have an inquiry. Please be more respectful of the members of this forum, as they are doing their best to remain respectful to you.

 

[SrC]

Hmm.

 

[Notorious J]

Hmm.

Welcome to the next chapter.

 

[BLXLyfe]

Team durango spent alot of money on top drivers when they first showed up in 1/8.. initially the car took off with its different design but it handled badely the pro drivers could only go so fast with it.. "we couldnt find a way to make it go faster - scott mcbride(kyles dad)"

So they were massively behind when all the big names left them high an dry

Lutz stayed due to a 10 year super contract.
They designed the new dnx8 and it took too long to get to market and by then funds had been dried up.

Hobbico then ended up in a massive law suit with traxxas over arrma nero. Hence bankrupt. They also owed a heap of money to many manufacturers. They caved and sold.

Arrma wanted to act independently from horizon as in design etc so an agreement was made.. so we now have arrma as we know it and horizon hasnt ruined anther great brand