What's Up With 3DHS??

[xlr8tion]

Business is business. If they are content not to stock AC they will go out of business. The problem is not enough staff. It's supply chain mgmt and scalability.

These guys don't have a proper business model to scale up supply up to meet the demand. If they don't care and are satisfied with their status quo it is a terribly run business.

Put aside your emotions and just look at the reality of it. If you have run a successful business you would understand that scalability to maintain growth is paramount.

Our Company only had 6 inside staff and we wielded 175 employees in the field and handled over 400 clients-so I don't buy the "we are understaffed".

I worked 12 hour days 6 days a week for 5 years straight to scale our company up and these guys are open 10 to 4? Come on...It's a Hobby disguised as a business that is failing.

They are dead and don't even know it nor seem to care.

What would I know...I retired at age 36 in 1998 cause I worked my arse off hard enough to get acquired by a Fortune 500 company.

Most people sign the back of checks; not the front side-so I don't expect a lot of concurrence here.

Business is "all in" or you are "all out".

 

[SnowDog]

Business is business. If they are content not to stock AC they will go out of business. The problem is not enough staff. It's supply chain mgmt and scalability.

These guys don't have a proper business model to scale up supply up to meet the demand. If they don't care and are satisfied with their status quo it is a terribly run business.

Put aside your emotions and just look at the reality of it. If you have run a successful business you would understand that scalability to maintain growth is paramount.

Our Company only had 6 inside staff and we wielded 175 employees in the field and handled over 400 clients-so I don't buy the "we are understaffed".

I worked 12 hour days 6 days a week for 5 years straight to scale our company up and these guys are open 10 to 4? Come on...It's a Hobby disguised as a business that is failing.

They are dead and don't even know it nor seem to care.

What would I know...I retired at age 36 in 1998 cause I worked my arse off hard enough to get acquired by a Fortune 500 company.

Most people sign the back of checks; not the front side-so I don't expect a lot of concurrence here.

Business is "all in" or you are "all out".

Without knowing the particulars of this specific company, their goals, plans, objectives, constraints, etc. it is possibly inappropriate to declare 3DHS as good or bad or competent or not. The only facts of the matter that are known to us, the public, the customers, is that 3DHS continues to be a viable business or they would have closed the doors long before now. How they choose to run the business is their discretion and the risks/rewards of their choices are theirs.

If they are going to shut the doors, it will be their choice, not because someone else tells them they can't do it. They are, in fact, doing it, and doing it their way. Their success or failure is in their hands.

[THE ABOVE COMMENTS ARE MY OPINIONS ONLY]

 

[xlr8tion]

Without knowing the particulars of this specific company, their goals, plans, objectives, constraints, etc. it is possibly inappropriate to declare 3DHS as good or bad or competent or not. The only facts of the matter that are known to us, the public, the customers, is that 3DHS continues to be a viable business or they would have closed the doors long before now. How they choose to run the business is their discretion and the risks/rewards of their choices are theirs.

If they are going to shut the doors, it will be their choice, not because someone else tells them they can't do it. They are, in fact, doing it, and doing it their way. Their success or failure is in their hands.

[THE ABOVE COMMENTS ARE MY OPINIONS ONLY]

"If they are going to shut the doors, it will be their choice."

Not really..it will be their Creditors/Vendors decision. It's not inappropriate for me to say they have 89 per cent OOS inventory. It's a factual observation. My opinion it is an improperly run business. It's not an indictment of them as people; just their business skills.

Or lack of.

I've bought my last 3DHS AC (today)so I guess the rest is a moot point except that it was OOS at 3DHS and in stock at a different vendor.

Peace bro!

 

[3dRCparts.com]

your assuming they have creditors? maybe they don't (by choice or otherwise) and that is the reason for OOS

 

[xlr8tion]

your assuming they have creditors? maybe they don't (by choice or otherwise) and that is the reason for OOS

All businesses have Greditors. A Credit Card is a Creditor. The question is are they "behind terms" with their creditors and have they been cut off? No cash flow equals credit lines getting called in from banks and etc.

But you are definitely focusing on the crux of the issue!

They better call Dave Ramsey!

 

[njswede]

Ah, a "3dhs is going out off businesses" thread! They've been popping up a few times a years ever since I got into the hobby. I see a lot off speculation, but very few facts. 3dhs probably has enough fanatically loyal customers to stay in business for the foreseeable future. Scaling up isn't as easy as you would think, because the market isn't that big. The market for high end 3D planes can't be worth more than a few million dollars or maybe trend of millions of dollars, which means that there's a very real limit to how much you can scale it up. It's not as easy as "be a better businessman and you can scale it up infinitely".

That being said, there's probably things they can do to improve customer service. But I'm willing to bet they'll be around for next season too, especially with all the new stuff they're releasing.

Also, what we're seeing is very typical for this time of the year. They always seem to drain inventory during the summer and run almost dry in early fall. I can only speculate as to why.

Bottom line is if you like them, do business with them, if you don't, go somewhere else. I like the way their planes fly, so I'll stay with them. Ymmv.

 

[xlr8tion]

You are right....

Ah, a "3dhs is going out off businesses" thread! They've been popping up a few times a years ever since I got into the hobby. I see a lot off speculation, but very few facts. 3dhs probably has enough fanatically loyal customers to stay in business for the foreseeable future. Scaling up isn't as easy as you would think, because the market isn't that big. The market for high end 3D planes can't be worth more than a few million dollars or maybe trend of millions of dollars, which means that there's a very real limit to how much you can scale it up. It's not as easy as "be a better businessman and you can scale it up infinitely".

That being said, there's probably things they can do to improve customer service. But I'm willing to bet they'll be around for next season too, especially with all the new stuff they're releasing.

Also, what we're seeing is very typical for this time of the year. They always seem to drain inventory during the summer and run almost dry in early fall. I can only speculate as to why.

Bottom line is if you like them, do business with them, if you don't, go somewhere else. I like the way their planes fly, so I'll stay with them. Ymmv.

They will survive in perpetuity . What was I thinking. When you have the " holy grail" brand; inventory and customer service are secondary considerations. I wish them the best with their "Hobby Business".

 

[blakevan]

What I find funny about this thread and every other thread on this topic on several different sites is they way people know how to run an RC hobby business without ever running one. I always wonder why these expert business people don't ask questions to try and learn why 3DHS, EF or PA are all about the same size and have similar problems. May be, just may be, the folks running those business know what they are doing and do things for a reason.

Shouldn't a seasoned business person ask questions like: what is the TAM? How much of the TAM can a business capture with which strategy. What is the supply chain like and the challenges a small business might face in getting time on the production line vs. a larger competitor? Where in the world can one source these objects? How will the objects be shipped from CM to distro? Nope the experts can just look from the outside and see how to fix the machine that clearly isn't run properly.

It reminds me of this fable.


The story is told of a successful businessman who took a cruise to the Caribbean with his wife and children for vacation. He was usually too busy for vacation but this time he acquiesced to his family’s wishes and took a week off for the trip. While the mammoth cruise ship docked at one of the islands, the man decided to take his family fishing. He chartered a boat just big enough for his family with a local man of good reputation. The fishing charter left early one morning and returned before noon. The family had a wonderful time, catching some eye-popping fish and talking to the charter’s captain, a laid-back, easy-going native. As the boat made its way back to the dock, the businessman asked the fisherman if he had another charter in the afternoon that day.

“No,†replied the captain, “I only charter in the morning. That provides enough money for me and my family.â€

“What do you do in the afternoon?†asked the businessman.

“I play with my children, take a nap with my wife, read a book. In the evening I play the guitar and sing with my friends.â€

The businessman looked bewildered, “You’re missing a big opportunity.â€

“How so?†replied the fisherman.

“You could charter in the afternoon and again in the evening and triple your income.â€

“I could? What would I do then?â€

The businessman knew he had the captain’s attention. “You could leverage your expertise, buy more boats, hire workers and build up your business.â€

“How long would that take,†inquired the man.

“In 20 or 25 years you would be a rich man!†said the businessman.

“Then what?â€

“You could relax, spend time with your family, go to exotic places, enjoy time with friends, even go fishing for fun.â€

A smile crossed the fisherman’s lips as he considered the irony of the statement. Even the businessman’s wife was grinning. “That’s what I do now,†he explained.

The morale of this story is that sometimes we can't see from the perspective of the person so best to assume they know what they want and are doing it the way they want to do it.

 

[gyro]

The morale of this story is that sometimes we can't see from the perspective of the person so best to assume they know what they want and are doing it the way they want to do it. [/FONT]

Couldn't agree with your closing statement more! Very well put!

 

[xlr8tion]

Don't overcomplicate it.

What I find funny about this thread and every other thread on this topic on several different sites is they way people know how to run an RC hobby business without ever running one. I always wonder why these expert business people don't ask questions to try and learn why 3DHS, EF or PA are all about the same size and have similar problems. May be, just may be, the folks running those business know what they are doing and do things for a reason.

Shouldn't a seasoned business person ask questions like: what is the TAM? How much of the TAM can a business capture with which strategy. What is the supply chain like and the challenges a small business might face in getting time on the production line vs. a larger competitor? Where in the world can one source these objects? How will the objects be shipped from CM to distro? Nope the experts can just look from the outside and see how to fix the machine that clearly isn't run properly.

It reminds me of this fable.


The story is told of a successful businessman who took a cruise to the Caribbean with his wife and children for vacation. He was usually too busy for vacation but this time he acquiesced to his family’s wishes and took a week off for the trip. While the mammoth cruise ship docked at one of the islands, the man decided to take his family fishing. He chartered a boat just big enough for his family with a local man of good reputation. The fishing charter left early one morning and returned before noon. The family had a wonderful time, catching some eye-popping fish and talking to the charter’s captain, a laid-back, easy-going native. As the boat made its way back to the dock, the businessman asked the fisherman if he had another charter in the afternoon that day.

“No,†replied the captain, “I only charter in the morning. That provides enough money for me and my family.â€

“What do you do in the afternoon?†asked the businessman.

“I play with my children, take a nap with my wife, read a book. In the evening I play the guitar and sing with my friends.â€

The businessman looked bewildered, “You’re missing a big opportunity.â€

“How so?†replied the fisherman.

“You could charter in the afternoon and again in the evening and triple your income.â€

“I could? What would I do then?â€

The businessman knew he had the captain’s attention. “You could leverage your expertise, buy more boats, hire workers and build up your business.â€

“How long would that take,†inquired the man.

“In 20 or 25 years you would be a rich man!†said the businessman.

“Then what?â€

“You could relax, spend time with your family, go to exotic places, enjoy time with friends, even go fishing for fun.â€

A smile crossed the fisherman’s lips as he considered the irony of the statement. Even the businessman’s wife was grinning. “That’s what I do now,†he explained.

The morale of this story is that sometimes we can't see from the perspective of the person so best to assume they know what they want and are doing it the way they want to do it.

The Total Accessible Market is HUGE...Look at the FS of 3D AC on RCG and RCU-it's incredible how many planes that are built and FS as LPU's. I have no business degree(I have a Doctorate In Pharmacy) and dropped accounting while getting my BS in Chemistry(elective course) and what we DID NOT KNOW helped us. We fired the MBA we had hired out of Kellogg School of Mgmt @Northwestern when I realized he was TOTALLY INCOMPETENT as when he submitted our 1st years tax return with an net profit margin of 997 dollars on 1.1 million Gross Revenues in 1993...Do the math....You either make or lose money-not break even at 1000/1100000 x100=0.09% That tripped an IRS algorithm and we were audited. A 0.09% Net Profit? 3 months after I fired that idiot we got nailed for 120K in an IRS audit that cost us 50K in lawyers fees to fight.

It's following Occam's Razor. Hard work and diligence-I could care less what the total available global market was. I cared about delivering quality health care; collecting AR and paying AP on time. You sound like one of these Enron "smartest in the room type". If you work hard and scale supply to demand and stay honest and provide superlative customer service you will succeed. These guys are clueless what EBITDA is only worry about that when you are being acquired for valuation purposes. MBA is not how you learn about how to run a business; you learn it on the fly by busting your arse harder then the competition and providing better service at a lower cost. BAM...Just saved you 200K rather than going to KSOM at Northwestern. I spoke to Curtis yesterday; voiced my concerns and said you "should crush 3DHS". In a niche market you kill or be killed. No worries...Curtis did not care. HH is in it to make money and profit. These guys appear to just want to
clear enough cash to travel around to the Event's and "Yuck and Huck". Ferrrari, Lambo ,Porsche did that to induce consumer sales way back when til they gained momentum.

Don't throw a canard in with the complex business modeling necessity. Show up at 8 and leave at 8 and you'll do better than if you show up at 10 and leave at 4.

They should worry more about how their cash flow flies rather that their team pilot does.

I'll skip the parables because 11 per cent available inventory speaks for it self. New Hucking term for the biz.....

DEATH SPIRAL. I picked up a EF 48 Edge-EXP LPU of CL today for 200 RTF...that's the new paradigm.