Pricing of Rc products in India

Started by Anil Singh, November 01, 2013, 07:05:48 AM

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Anil Singh

It is very tricky topic but would like some disscussion on this subject.

If look at the advice regarding anything simple advice would be to get it from abroad.

Why So?

One reason that i can understand - items are cheap even if you get it from USA, it still is cheaper. How and WHY?

Most the RC products, be it branded or copy are sourced from China, Hongkong.

IF we see the comparative rates, Indian rates are almost three times the Dollar rate.


I cannot understand the logic of such rise in the rates of any item. its understood, its not the bulk item but three times the original rate ?????

If you can pay in dollars and make purchase through international site, with max rates for transportation it still reamains around double the cost at international sites.

i am not talkig about bulk rates and bulk transportation.


One more thing that i have come to observe is some of the sites dealing with RC products. showing rates, exculding the Sales tax.

As far as my understanding goes all the labelled or packed pruducts for sale are to be labelled with prices inclusive of taxes.

Well i am new to this hobby. so may be i am feeling odd dealing with such matters.

nairitb

As far as I know, MRP is decided by the manufacturer/ importer of a product. Gillette products, Black n Decker, Bosch etc who have OFFICIAL presence in India and market their products though authorised distributors. So they HAVE to label their products with MRP so that the product is charged fairly throughout the SUPPLY CHAIN (Stockist- Distributor- Retailer).

However, RC products imported into India are imported in small quantities and imported by the stores themselves. They dont have ANY supply chains like the ones mentioned above. So whether they label with MRP is immaterial. And I think it somehow becomes convenient for them if they charge tax separately as tax rates keep on changing every yr.

sanjayrai55

I don't agree.

Take the case of a 40 sized trainer, the most common beginners model. Check what the landed cost would be, adding 30% Customs. Now compare with local offerings which are in the Rs. 4~5000 range.

Even on electronics, shops like Indian Hobby work at roughly Rs. 100 to the USD. Which is reasonable; it would cost you about 90 to import from HK.And you are never sure when it would arrive,

True, the choice and variety is sometimes lacking in LHS. But if we do not support them, we ourselves (the Indian RC Community) will be the losers

yashodhanp

@sanjay ji , a domestically made 40 sized high winger is around Rs.3000 (2700 in kolkata) and the best part is that all the spares for it are readily available as well which is not the case with an imported model, which is very good for a beginner. and the spares are prices extremely reasonably as well :D
Sent from a potato using a lamp.

sanjayrai55


yashodhanp

Most of us fliers here have flown mr. Anwars' model while learning.. incredibly strong and a brilliant flying model.
Sent from a potato using a lamp.

anwar

Hangar : Please see my introduction.
RC India forum and me : About this forum.

aman1256

Actually I really Agree with Sanjay Sir We do have to support LHS I know they are bit costly but sometimes ordering online also can get costly than LHS plus no gurantee of time. So We should Support LHS :)
Agree with Sanjay Sir. :)

iwincar

When we visit any Indian RC hobby site, one thing to observe is PRICE of a Rtf and ARF's, they are way to high due to double pricing.

Why double pricing because they are imported in India and resold so it's clearly foreign selling price (cost+profit) + Indian SP ( import price+profit)= final selling price

Fluctuating $ also adds up to sellers price and return on his blocking investment .

So there is a dire strait need for FT customized kits produced locally by any of the RC sites, there by they will earn more money as they enlarge the customer base, as the  current steep pricing is restricting new entrants in Rc hobby.

sanjayrai55

The FT Raw Material is not made in India ie $ Foam Board

vineet

That is why i do scratch build ..they are better

aman1256

Excuse me But what is Ft version just need to know for my knowledge :)

iwincar

Ft version is : I really appreciate the fact how FT : simplified the rc building and created business out of making pre cut parts with folds,and instructions that makes making rc model very very easy.

Qn is can some one that is rc bazaar etc can do exactly like that it will bring the Price down of rtf ARF's

aman1256


rcparkjets

What is FT version ?
Sorry I can't follow.
Money won't make you happy... but everybody wants to find out for themselves! - Zig Ziglar
Multiplex Easy Star | F22 Raptor | FT Simple Storch | Futaba 14 SGA

anwar

Quote from: iwincar on December 19, 2013, 01:37:25 PM
Qn is can some one that is rc bazaar etc can do exactly like that it will bring the Price down of rtf ARF's

For the last time... what is "FT" ? And what is "QN" ? An answer in proper English would make everyone's life easier !
Hangar : Please see my introduction.
RC India forum and me : About this forum.

madaquif

Anwar sir from my understanding .....FT stands for Flitetest series (the one im trying to build my self)
and QN stands for questions....

i hope i understood right though... :giggle: .
Regards

MadAquif...

4 D RC ....SURFACE WATER AIR N SPACE

anwar

Feel sad and angry at the same time when people cannot type in 10 extra keys :( Is life going that fast ?
Hangar : Please see my introduction.
RC India forum and me : About this forum.

madaquif

Quote from: anwar on December 19, 2013, 05:22:56 PM
Feel sad and angry at the same time when people cannot type in 10 extra keys :( Is life going that fast ?

i guess every one likes shortcuts....:(

and life has become fast....specially with 3G n 4G...

people use sms language more than normal language....
Regards

MadAquif...

4 D RC ....SURFACE WATER AIR N SPACE

saikat

people are getting lazy

people are forgetting/ignoring etiquette

but hey ...

my elders say the same things about me


must be the generation gap


vishal


+1 another feather for your cap anwar sir

i was thinking FT stands for some flying thermocol , but then i was wrong.... ;D

bessie

but now in LHS we are getting only arf's and not the kits and balsa was not frequently not available if this is taken care it will be good

rcparkjets

How to become an LHS in India?

I am seeing a growing trend of many new LHS and I analyzed how they become LHS in India. Here is my observations how they do, after some research/orders by my self;

1. Buy products from hobbyking/banggood etc. in small quantity / small parcels without paying customs duty. Product reaches within two/three weeks.
2. Signup for a web hosting account (Rs. 500 to Rs. 1000 per month)
3. Build up your website using ecommerce platform prestashop (So called new LHS websites can be built within 30 minutes except adding the products)
4. Use their personal account to receive money by bank transfer and post on forum with their products. Signing up with a payment gateway in India needs a registered company.

So, a new LHS is born. But, how they price their products ???
Item price in HK : 7.32$
Unit weight : 45 grams
For 4 Nos / Shipping Weight :180grams
International (Registered) Air Mail : 5.99$ (banggood offers free shipping)
Landed cost : 4x7.32 + 5.99 = 35.27 $ (Due to small parcel/low declared value no customs duty)
Cost per product : 8.82 $ = Rs. 555/- (@63 per $)

Offer Free shipping because implementing weight based shipping price calculator needs high development costs unless you are signing up with premium couriers like Fedex/DHL/Aramex etc.
So, better add up Flat rate Rs. 100 for shipping for the product
So LHS cost is Rs. 655/-
Selling price : 999/-
Profit : 999-655 = Rs. 344/-

So, more than a Hobby / making money becomes important for them.
Somehow, we are addicted to see money in everything we do for example recent suggestions on a thread choose guitar/earn money.

I am not against upcoming LHSs instead my suggestion is either you step up to a commercial full fledged business or reduce your price to a personal sale (If the product was priced as Rs. 755/- I may not come up with this post)

The above is my humble opinion and your comments are welcome and please correct me if I am wrong.
Money won't make you happy... but everybody wants to find out for themselves! - Zig Ziglar
Multiplex Easy Star | F22 Raptor | FT Simple Storch | Futaba 14 SGA

madaquif

Regards

MadAquif...

4 D RC ....SURFACE WATER AIR N SPACE

ayush_x

good insight rcparkjets....
but they even have to deal with faulty parts.
Who will bear the cost of these defective parts at times it become unfeasible to get them replaced.
In my opinion its not possible to work with such a low margin unless they are sourced locally.
Its a problem we have to live with.