Another price hike Really? - Page 4 - RCCanada - Canada Radio Controlled Hobby Forum
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Old 12-24-2015, 06:52 PM   #31
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Re: Another price hike Really?

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Just a reminder or two-we are saving about $1000 each year owing to lower gasoline prices, though I suppose it could be better if the cost of gasoline reflected the price of crude oil. These of course, are numbers from the government I believe. That should in theory free up some money for our ever increasing hobby goods.
Also, Free Trade deals were never meant to help any regular Canadian citizen. These deals are designed to facilitate movement of capital globally, while keeping workers trapped in their respective countries to adapt to their new-found lower wages and benefits.
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Old 12-28-2015, 12:56 AM   #32
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Re: Another price hike Really?

Open a Hobby Shop if you want to see what margins really are. Every retailer undercutting each other just to get the sale. There's no money in it for anyone anymore. Distributors turning blind eyes to MAP prices, not to mention competing with their retailers. All the better for those bargain hunters.
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Last edited by JoeAverage; 12-28-2015 at 01:19 AM. Reason: clarity
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Old 12-28-2015, 08:44 AM   #33
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Re: Another price hike Really?

Realistically the US dollar has been the North American Euro for decades. A $100 US item can remain the same in the US for years yet its cost to others in North America can and will fluctuate wildly according to how our currency stacks up against its US marker.

I can remember the times before ARF’s when you had to really build your first trainer. The cost of the kit, motor, radio and assorted hardware remained pretty stable in the US hobby shops but in Canada the prices could fluctuate quite a bit. The lament was always the same that the hobby shop had no control over the exchange rate and shipping costs.

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Old 12-28-2015, 08:54 PM   #34
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Re: Another price hike Really?

At Today's rate, .7207 you are looking at 1.3875 plus credit card or bank exchange fees. Who would want to eat any of that?
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Old 12-29-2015, 08:40 AM   #35
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Re: Another price hike Really?

Expect these wild fluctuations in price when pricing in CAD. Funny, a number of guys in this thread reject Canadian online shops because they price in USD in order to prevent constant price changes.

Couple the 40% exchange with the new Great Hair Guy running the country and dipping into our pockets an extra $3k-$7k per year, plus mortgaging our kids future,This won't improve for a long time. We're still trying to repay the debt that Daddy Trudeau created in the 70's.

Thank you Canadian voters!
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Old 12-29-2015, 08:58 AM   #36
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Re: Another price hike Really?

Originally Posted by Terry Gauvin View Post
At Today's rate, .7207 you are looking at 1.3875 plus credit card or bank exchange fees. Who would want to eat any of that?
Gas at $1.58 US gallon still works out to less than 60 cents Canadian as opposed to 94.7 a liter including exchange as of this morning. With an F250 and large tank I save $10 a fill up. I just bought a Minkota trolling motor battery box in the US wanted $90 plus taxes and shipping. $50 free shipping and I bet when I declare it at the border they let me through without paying taxes. Yes filling up the truck pays the tunnel fare both ways and I might stop at the hobby shop as well.

Still works out cheaper for me.

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Old 12-29-2015, 09:08 AM   #37
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Re: Another price hike Really?

Originally Posted by luv2flyrc View Post
Couple the 40% exchange with the new Great Hair Guy running the country and dipping into our pockets an extra $3k-$7k per year, plus mortgaging our kids future,This won't improve for a long time. We're still trying to repay the debt that Daddy Trudeau created in the 70's.

Thank you Canadian voters!
I normally stay out of political discussions...but I'm totally with you here. I'm embarrassed to be a Canadian these days. Did we really just elect a part time drama teacher to run our country based on his looks??? Seems we did...we are no better than the Americans that elect former body builders and least though guys are used to working with large budgets.

The cycle I've picked up on in my relatively short lifetime...elect Conservative to fix financial mess of Liberals, when mess is just about fixed blame Conservatives for it and re-elect Liberals to screw it up again.

Despite the fact that Canada faired much better than most countries through a major world economic downturn, the Liberals and their supporters still seem to think the Conservatives were wholly the cause of any economic issue in Canada today. Funny, since Trudeau was elected our dollar has lost a few more points and for some reason he hasn't been able to bring the price of oil back up...shocking.

In hindsight, I think the only way the Conservatives would have had a chance in this latest election would have been to replace Harper as leader with somebody younger and hipper...seems there were quite a few voters that would traditionally call themselves Conservatives but took issue with Harper himself. The next election should prove to be interesting...I think we all learned something about how Canadian votes are won.

On a more relevant note, just had an awesome experience with Great Hobbies and their price match policy. Basically anytime another Canadian Hobby Shop has a sale, or simply a better price, Great Hobbies will beat it by 10%. Definitely took some sting out of the low dollar for me!
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Old 12-30-2015, 08:39 AM   #38
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Re: Another price hike Really?

I just wanted to take a moment to address some of the concerns brought forward in this thread regarding our company, pricing policy, and the exchange situation.

Futaba 14GS

First of all, with regard to the Futaba 14GS, we just now reviewed the pricing history on this product. There was a short period (December 4 through December 19) where this product was priced at $539.99 IN ERROR. It was never supposed to be priced that low. We did end up selling a couple at that price, but that was way, way, way below cost. Pricing previous to this was $799.99 set on July 17. On December 4 the pricing on that item was supposed to have gone to $829.99 to reflect changes in the exchange rate. For some reason, there was an error in data somewhere that threw the pricing off and it ended up with a price of $539.99. On December 19, the item got repriced again to where it should be, at $839.99, again due to a change in currency exchange. That price reflects the current exchange on a US MAP price of $599.99.

Just as a note, we have approximately 100,000 products in our system. These products do not get repriced by hand. There is simply not the time or resources to monitor every price on every item. Repricing depends on a lot of things happening correctly, including the pricing data provided to us by our vendors. If something is askew somewhere along the line, the result may be an incorrect price. Generally though, things go pretty well, considering.


As you all know, the Canadian dollar was at par with the US dollar three years ago. Since that time it has moved to where the base rate is 1.39 to 1.40 to purchase a USD. It is normal for this rate to change between a half and a full percentage point in one day lately. If you purchase on a credit card or PayPal, you will see that exchange being 1.415 to 1.43. Great Hobbies is currently priced at 1.40.

The statement “everything else took a 10-15% hike” is completely inaccurate. Our general policy is that we review pricing on a currency shift of 2 to 3%. The odd time we have had to bump about 5%, only after having retained for too long, below exchange pricing in hopes that the dollar would regain. We lose ground in those scenarios and raising the prices that amount was merely playing catch up with the currency.

I must say, I am a bit baffled at the statement
“I just think it’s a bit excessive especially with the economy in the state it’s in”.
How is keeping our pricing up-to-date with cost and currency exchange even related to the state of the economy? We are in no position to subsidize the industry because people have fewer dollars. On the contrary, it makes it much more difficult for us to retain staff and keep the business rolling when people are buying less. There is simply not enough margin in this industry.


There are two ways for a business to price products. One is to calculate the costs on every incoming shipment and price sticker the items according to that landed cost. The business makes exactly the same margin on any given item, but also ends up having multiples of the same item on the shelf at totally different prices. A small, single location, business may get away with that—albeit having customers complain that there are different prices on the same item . When one has multiple locations with on line shopping, and shipments arriving daily, it is impossible to use that system. There has to be one price for each product, as advertised on our web site, and it must be consistent with the price in all locations. On top of that, the vast majority of today’s products are Minimum Advertised Pricing (MAP) as enforced by the suppliers. For Canada, that MAP is the US price times the current exchange rate. Our pricing has to abide by MAP pricing or product will be cut off.

With regard to
“The fun part for Great Hobbies is they may have bought this stock when the dollar was better and every time the Canadian dollar takes a hit they can bump the price. Even though they didn't buy it at the new exchange rate you will pay the new exchange rate.”
Yes, this is possible, when the dollar gets weaker. However, most of this gets negated by the following: Much of what we purchase from the major suppliers is on 30 day terms. If you look at the currency movement over the past three months, the CAD has lost over 3% per month. When we price product at a given exchange rate we cannot envision what that is going to actually cost us in a month’s time when it comes to pay it. We end up losing several percent on much of the product when the dollar continues to drop in this way.

What about when the dollar gains strength? The business ends up losing the margin because prices have to go down to compete, even though they have been purchased at the more expensive exchange. AND ALL PRICES DO GO DOWN JUST AS FAST AS THEY GO UP, CONTRARY TO POPULAR BELIEF!! Everything has to even out in the end. What one might gain in one direction, one loses in the other. And the currency does move both ways over time. It is the only way one can viably run a business.

Don’t forget, every hobby business in this country is a small business, owned by your fellow modeller, INCLUDING GREAT HOBBIES! We are not a large, faceless corporation who makes tons of profit and tries to trample all over the little guy. Every transaction we execute with each one of you must be fair!—Fair on both sides of the equation—Fair to you and fair to us.

Folks, there is no magic. When the dollar moves, pricing must move along with it. I know it’s easy to complain about pricing, but I think it’s important that you hear the reality from the other side of the counter. This business has never been tougher.

If you enjoy having your local hobby shop there to walk in and browse the products, SUPPORT THAT SHOP, regardless of who it is. Ordering from outside the country at the cheapest possible price imaginable will not be supporting the hobby or the industry in this country, and what doesn’t get supported will soon be gone.
Jim Ewing
Great Hobbies
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Old 12-30-2015, 01:12 PM   #39
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Re: Another price hike Really?

Thank you for a great explanation. Seems like exactly how things should work. A friend of mine took advantage of the price error and is thrilled. It was good of GH to honour the online price. You will get the difference back and more. I cannot believe that I did not buy one since it is difficult for me to pass up a bargain. Pointing a friend at it was almost as good. At the time I thought it was some type of clearance. At one time I felt your pricing was wild but have found it to be right in line with US +exchange and so you will be considered much more often as our online LHS!
I do find that your system seems to lack online order history and perhaps a few other features other online businesses have. If I'm wrong let me know.
Thanks again. A good read.

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Old 12-31-2015, 08:21 AM   #40
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Re: Another price hike Really?

Another Price Hike

Something I have noticed with auto parts which may also apply to Hobby Goodies.

I can buy 100 $ to 200$ cost auto parts in Toronto from Dealers for 20 $ or more less then Local.

When I asked why the Price Local was 20$ plus higher, the Local Dealer told me it's because of the shipping.

Shipping gotta play a part in the Prices or?
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