HPI Baja Flux
 

I'd like to point everyone to a blatant M.A.P. violation by one of the biggest online retailers in the industry. Stormer Hobbies has the new HPI Baja5B flux for way below M.A.P. I've already reported this violation directly to HPI a few minutes ago as I just discovered it. This is whats wrong with owning a hobby shop. Actions like this by unscrupulous people. Here's the link if anyone wants to see for themselves. MAP is $1379

http://www.stormerhobbies.com/cgi-bi...s&pn=HPI107684

They are longtime offenders of MAP pricing, unfortunately.

I didn't know that. I'd seen other smaller business trying to voilate various MAPs but, this is the first time I noticed with Stormer. HPI tells me they are speaking to Stormer about it right now. I should please continue to report MAP violations and thanks etc etc.

I'm watching to see what Stormer does.

right because competition based pricing is bad

According to HPIs M.A.P. everyone can price the Baja 5b flux from the retail of $2500.00 down to the minimum of $1379. , not below. There are several reasons that M.A.P. policies are put in place.

right, that's actually called price fixing, and its bad for all of us

Maps are in place to protect the perceived value of a product. They are in place to protect the image of the company. A solid/reputable company does not want to be seen as a low cost brand. Many people equate low cost with cheap junk. The map is also in place to build in a profit for the retailers. Its also in place to help maintain fair market competition amongst retailers. Opening a business is a huge investment in time and money. Its something to protect and nurture. This can't be done if m.a.p.s are violated. In the end it would destroy competition and lead to higher prices.

I do understand why MAP is in place. However, from a customers point of view, Stormer set a price $ 150-or so below MAP...maybe they wanted to get rid of inventory,who knows? Also, if we as customers can find it cheaper we will...how is that going to lead to higher prices? If one shop only wants to make say $200- /Baja and sell more of them in doing so, how is that hurting anyone? In fact it is helping the guy who maybe wouldn't have bought it in the first place which in turn helps HPI....?

Just my thoughts.

You end up with less competition in the retail sector. The remaining retailers then have less incentive to keep the price lower and so they increase prices on merchandise.

Where I live there are no competing hobby shops...only one. Their prices are so high the real rc enthusiasts in my area shop else where ( and the manager wonders why the rc part of the business is suffering ). Only the newbies are the ones that buy gear there. If they were willing to lower their prices a bit...more business, simple.

Just for kicks, I compared 3 products (Truck kits) from hobby shops, 5, not online and w/in 200 miles for me. I have one local and the nearest one is 50 miles away. My local hobby shop was an avg. of $85- to a high of $ 110- MORE for the same kit! So, your theory does have some credibility. Even with the 4 remaining shops the prices varied greatly.. One hobby shop had kits cheaper, only by a little, than anywhere on the web I'd seen. The manager of that shop told me that he could barely keep up with his demand. His shop supported 2 different rc brands. So, it goes back to the Market Basket theory of business...keep prices down, which keeps customers happy and coming back which is key..and make profits on sheer volume .

So if one company wants to sell for a bit less, his competition may be upset, but as a customer, he would have my business.

I personally go for volume sales but, I do not violate the M.A.P.s in the process. There is another shop about 20 miles away. They price everything at max retail. They don't get really high volumes and stuff is slow to sell over there. When it sells they make maximum profit on each one. I also feel that it's wrong to squeeze people for every dime.