Sounds like Revell is

[Paul G.]

cutting off Hobby Heaven also.If they keep cutting everyone off they won't sell anything! Or maybe that's the idea?

[Paul G.]

http://wwwboard.modelcarkits.com/index.pl?read=1028160 Sorry fogot to add this.

[Scott]

I guess this would affect Jack also, so we need that warehouse day soon!

[Zoom Zoom]

I guess this would affect Jack also, so we need that warehouse day soon!

It has affected every mailorder company (except for Tower Hobbies, which is owned by the people who own Revell). We found out at the meeting that Jack had to raise his prices, and it sounds like he may quit selling Revell. So far it looks like Jack added $3/kit to his Revell stuff. The warehouse day will be in late July.

Basically the people that own Revell have done this to other hobbies such as R/C, eventually cutting out all other distributors but their own (Great Planes). At that point you'll likely only be able to buy a Revell kit through Tower, through a few hobby shops that might still carry a few Revell kits, or Tower Hobbies.

Buckle up, the prices of kits is going up, the availability is going down, and everyone is up in arms! I have enough to build w/o buying new kits. I just hope that the same fate that's decimating model companies doesn't trickle down to the point that we find no models, hence nobody making glue or paint for them anymore. It could happen.

[Firehawk]

Sounds like MRC - Model Rectumfier Corporation all over again. If anyone remembers what they did to Fujimi so long ago, they're doing it now to Italeri. 1/48 scale Mig-23 pre-MRC = 17.99. Post-MRC = $39.99. The old AMT mold B-52H which Italeri sells now used to cost $20-30. Now it's over $80.

But I'm trying to see a positive side to this. Revell wasn't particularly profitable being run the way it was, selling average kits en masse to Wal-Mart and the like. If they turn into more of a specialty manufacturer of kits, I am okay with that as long as the subject matter is rich and quality is high. Reduced quantity sales means higher unit prices, and to me in this case it would be worth it.

However I doubt that will be the case here. And cutting off the grassroots distributors irritates me. Those are the people that kept Revell in business. But, in business sometimes all that matters is money...

[Zoom Zoom]

Sounds like MRC - Model Rectumfier Corporation all over again. If anyone remembers what they did to Fujimi so long ago, they're doing it now to Italeri. 1/48 scale Mig-23 pre-MRC = 17.99. Post-MRC = $39.99. The old AMT mold B-52H which Italeri sells now used to cost $20-30. Now it's over $80.

But I'm trying to see a positive side to this. Revell wasn't particularly profitable being run the way it was, selling average kits en masse to Wal-Mart and the like. If they turn into more of a specialty manufacturer of kits, I am okay with that as long as the subject matter is rich and quality is high. Reduced quantity sales means higher unit prices, and to me in this case it would be worth it.

However I doubt that will be the case here. And cutting off the grassroots distributors irritates me. Those are the people that kept Revell in business. But, in business sometimes all that matters is money...

All I remember is that in the late 80's or early 90's Tamiya dropped MRC and went w/their own US distribution. Their prices dropped dramatically. Then MRC took on Fujimi. Overnight Fujimi kits doubled in price and dropped from the face of the hobby shops. All of a sudden Tamiya kits were affordable (they had cost quite a premium over Fujimi) and Fujimi kits were priced right out of the market. That's the last time Fujimi kits were sold in any volume in the US. Thanks MRC.

I despise what Revell is doing to the very people that have kept them alive. You know damned well they'll keep selling to Wal Mart cheap, and you know damned well that Revell's online hobby shop known as "Tower Hobbies" owned by Hobbico which owns Revell will sell Revell kits for what the Model Roundups and Hobby Heavens used to be able to sell for. They've effectively cut them off. They say it's to save the hobby shops, but most hobby shops are affected badly as well since they don't have a way to deal w/Great Plains punishing requirements. So hobby shops are passing on the new higher costs or dropping Revell.

Basically Revell is attempting to control every aspect of their market from design to manufacturing to distribution and retailing. If they can make money doing so, good luck. It runs right into the face of a hobby that doesn't accept higher prices. Thus the hobby shrinks even further.

This is really not helping the hobby whatsoever, but it's probably lined somebody's pocket, someone who doesn't give a rat's behind about our hobby from our perspective.

[Paul G.]

Maybe we as the hobbists should flood them with letters and e-mails telling them how stupid there plan is and that they will loose money big time! Because if they limit where the kits can be purchased that just makes it harder for us as the consumers to be able to purchase the kits, not only that but just find them. Walmart is not going to keep a full line of Revell kits on there shelves. The store by me has a very small model section.

[Eric Cole]

I think writing letters to Revell/Great Planes might show strength in numbers but I don't think you'll convince them that they're going to make less money. What ever they are doing right now has been in the works for a long period of time. The powers that be have already decided what they're going to do, how they're going to do it and when it's going to happen and how much money they intend to spend and make long before any of us ever knew the acquisition took place. In their minds they have studied the market and the vendors/consumers that make up the market and they have decided what's best for themselves not the modeler/hobbyist. That's all it's about, it's business, and it's about doing it the way they will benifit the most from it.

We're thinking about the hobby long term. Their long term plan may have nothing to do with the hobby, just a way for a few people to make more money. The reality of it is, even if you sell fewer kits overall but limit the number of people that profit from it the percentage of income for those few people goes up. If it kills the hobby but those few people still make a lot of money, even for a short term, that's fine with them. When the well runs dry... dig a new well !!

[Paul G.]

I guess we will be buying more Jap kits!

[Firehawk]

I still see logic behind this and a positive side. I'll give you a business example. Back in the late 80's, there was a handful of BMX bike manufacturers that were very succesful. Redline, GT, Hutch, Mongoose, & Schwinn were the heavy hitters. Just like in our hobby, the emergence of video games and other factors contributed to virtually killing off the entire sport.

GT, Mongoose & Schwinn attempted to sve themselves by doing the Wal-Mart mass volume routine. Their product ended up being driven more by low cost than quality, sales plummeted, and no true enthusiast would be caught dead buying one. All three of those manufacturers were then bought out by one company, Pacific Bicycles, and now they are only historic names that are ruined by crap taiwan made pieces of junk that fall apart. Sound familiar? Hello AMT/Racing Champions?

Hutch tried to survive and make a go of it, selling through mail-order companies in all the magazines. Eventually they collapsed, mainly due to behind the scenes shady business dealings and tax issues.

Redline chose to sell bikes exclusively through bicycle shops. No mail order whatsoever. Just what they are doing now with Revell. Quantities shrank for sure, but they stayed afloat and profitable. They survived, and they made quality products all along. Today, the sport is experiencing a major resurgence, and who's the number one brand? Their quality is unbeatable, much is American-made, and the value speaks for itself. You can buy an off-the floor top level competitive bike for $350-500 that you'd have to spend $2,000+ for if you pieced something together yourself.

I am hoping that this is what happens with Revell, that these moves will help them to become strong and cater more to the hobbyist (not the mom at Wal-Mart), and we'll get some more desirable products with higher quality at an acceptable price. The only thing I am not sure about, is if Great Planes intends to supply WalMart, has that been made clear? If they do, it's shooting themselves in the foot and contradicts cutting off the mail order companies, because they are effectively the same business.

I'm all for getting things from the hobby shop, to me its worth a dollar or two more to keep them in business so I have a place I can buy paint, glue, accessories and supplies from, checking things out in my hands and not having to wait for shipping. A possible long term effect too, is that hobby shops won't have to add as much markup as they used to due to increased sales (since there's no mail order competition) and this may offset any price increases from the supplier. Most of the hobby shops were buying product at higher wholesale prices than what Wal Mart have been selling for retail, now the manufacturer won't have to gouge the little guy to make up for the margin concessions they had to make with the big guy.

If you run your business by trying to make your product as cheaply as possible, putting as little investment in what the customer buys, you'll paint yourself into an ever decreasing corner and put yourself out of business. the company that succeeds will be the one that gives the customer the most - not least - for his dollar. It is my hope this is what they are doing with Revell. Based on the success of Great Planes' other businesses, it appears to be a well thoguht out intelligent move that will benefit both them and eventually us as well.