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What's Up With 3DHS??

3dRCparts.com

70cc twin V2
"Show up at 8 and leave at 8 and you'll do better than if you show up at 10 and leave at 4."

Sorry, but once again you are assuming that they want to do better than they are. You have no idea what Ben and Co take home every month, sure they could make more sales and be better off financially, but better for whom? Maybe they are absolutely content with their business model
 

jmart95

70cc twin V2
The problem isnt from 3dhs, from what i understand they order as much as they can, its the factory that limits the quantity. With that said, the reason they cant keep up with their stock is that they do so welk selling what they have, the exact reason why they arent goinf out of business.
 

njswede

150cc
The problem isnt from 3dhs, from what i understand they order as much as they can, its the factory that limits the quantity. With that said, the reason they cant keep up with their stock is that they do so welk selling what they have, the exact reason why they arent goinf out of business.

Yup. I've heard the same thing. It's called being a victim of your own success.
 

njswede

150cc
For fun, let's try to estimate the TAM. There are 2500 AMA clubs in the US. Judging from the clubs I'm a member of, there's maybe 10 people in each club who are into high-end 3D stuff. So you have 25,000 potential customers. Most of them are flying the small stuff, but let's say the average price of an airframe is 500 bucks. Let's say each potential customer buys two airframes per year.

25,000 * 500 * 2 = 25,000,000.

There may be some people flying on non-chartered clubs and in parks, but these are typically going to be smaller and cheaper stuff, but for good measure, let's ad 50% to this number:

25,000 *1.5 = 37,500,000.

Let's say you have 10 vendors that make what we consider "high-end" planes. (3DHS, EF, Pilot, RedWing, Aeroworks, Carden, Hangar 9, Aeroplus and a few others). For the sake of simplicity, let's say they all split the market evenly. That leaves a $3,750,000 share for each vendor. Furthermore, let's assume you can sell the airframes at a 50% profit margin, which leaves you with $1,875,000 for salaries and overhead.

Now, I admit that this is a very rough estimate, but I'm willing to bet I'm in the right order of magnitude. The proof that I'm reasonably correct in my estimate is right in front of us: If there was an opportunity to become the gorilla of the high-end 3D market, someone would have seized it and made a fortune. That clearly hasn't happened. Noll, Ben, Chris and all the other guys aren't stupid. It's just that this cake isn't big enough to make the vendors fat.
 

xlr8tion

50cc
Bad assumption...

3DHS and EF are the most popular brands so their market share would be much higher. Too much business is always worse than too little when you can't fulfill what you potentially could.

OK guys...my 3DHS 58 Edge just arrived in two days from Shannon at One Fine Helis-He did a fantastic job...the order was placed at 10 am Monday and arrived a 5pm on Wednesday. That's how a transaction should happen/used to happen with 3DHS til the no inventory paradigm was accepted a
the way of doing business.

I'm not going to debate Team Sponsored Pilots and people that have not actually operated/owned a multimillion dollar/yr biz and got acquired by a company with a market cap of 1.8 Billion and annual sales of 1.2 Billion.. You guys speak from speculation-that is your prerogative.

i speak from experience and when you get acquired by a company that does a half year of due diligence on you-they never would have acquired a company from a "know nothing" unless we ran it right. So speculate away......I'm going flying.

I'm out...

Peace.......And I do mean peace....
 
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njswede

150cc
I'm not going to debate Team Sponsored Pilots and people that have not actually operated/owned a multimillion dollar/yr biz and got acquired by a company with a market cap of 1.8 Billion and annual sales of 1.2 Billion.. You guys speak from speculation-that is your prerogative.

I'm not a team sponsored pilot and I work for a major software company and I'm carrying a quota close to 50 million dollars... I do think I have a little tiny bit of business knowledge... But this discussion has run its course. Your wild speculation is obviously more accurate than my wild speculation. Peace! :)
 

gyro

GSN Contributor
xl8rtion, I'm not sure if I'm the team pilot you're referring to, but I agree with many of your points from a text book perspective, however text books define ideal, and sometimes you don't need to be ideal to be successful.

By the way, I'm not a multi-millionaire, but my opinions come from a bachelors and masters degrees in business operations... So I'm not clueless.

And my opinion is that all speculation about potential vs actual vs total market share aside, until you see 3dhs with A LOT of non-movable product in stock (like their 42" Vyper Bipe) then their business model is successful. They are selling all their products, and doing so for a profit.

Many people may not agree with, or care for their customer service, stock levels, the way they dress, or whatever else... But if people keep buying their stuff, it doesn't matter.

Right now, people are buying their stuff.
 

Lojik

70cc twin V2
jumping off this thread now, but just wanted to chime in that everyone will run a business how they want to and I'm sure they know what they are doing and if they wan't to grow bigger they will make it happen
 

xlr8tion

50cc
Everbody Chill....

I'm not a team sponsored pilot and I work for a major software company and I'm carrying a quota close to 50 million dollars... I do think I have a little tiny bit of business knowledge... But this discussion has run its course. Your wild speculation is obviously more accurate than my wild speculation. Peace! :)

Firstly to the sponsored pilots I respect you and yur talents...I just mean sponsored in that you are not a consumer in the same way the average intermediate pilot is with your relationship to your sponsor vs me if I buy from them.

Swede..I also respect your responsibility and quotas. If you fail to meet them you get fired at worst. If I failed; 175 employees would have lost gainful employment.

I know I am coming off as condescending and I apologize for that.

Can we just wish all these companies be it HH or 3DHS or EF the best of luck as we like to fly and the more competition the better.

I will tone it down and please just accept my apology for offending anyone.

I don't care about these companies but I do care about not burning bridges as I seem to be doing-but building some instead.

Regards...

Greg
 
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