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David Gore
Moderator Username: david_gore
Post Number: 2747 Registered: 4-2003
| Posted on Wednesday, 29 November, 2017 - 06:48: | |
I have received a number of enquiries regarding the absence of John Beech from the forum following Hurricane Irma in September. I contacted John and received the reply below which I know will be of interest: "Hi David, Very kind of you to reach out to me. Yes, we did have some hurricane damage . . . but overall, we got off lightly with some roof damage that let water into the house but no structural damage. We were without power for nearly a week (I have two generators and for different reasons both let me down, which speaks more to my lack of adequate preparedness and testing). This took a few weeks to resolve, especially getting contractors to effect repairs because there was so much widespread damage they were feasting on the surfeit of business. However, the principal reason I have pulled in my horns on social media lately has entirely to do, instead, with the pressures of business. I am self-employed and my business has - like every other on the planet - been under pressure from Chinese goods. This isn't new, of course, but has in our case been building over the course of a decade. However, this was the year that everything came together to see me finally shift focus from one area to another. To wit, I manufacture a remote control model helicopter, for which we make the metal components and that I have injection moldings done in Korea (South Korea, of course). Anyway, when the Chinese entered the market, the previously high-end technique of using carbon fiber plate and aluminum bits to assemble a model priced about 3X higher than mine came down in price precipitously - to the point it challenged us on the low end. Those of us making models of injection molded plastic were largely driven out out of business (save me and one other based in Germany). However, these competitors were largely replaced with a bevy of Chinese manufacturers, so there remain many, many pigs feeding at the one trough. Anyway, seeing the handwriting on the wall, several years ago I began diversifying into the electronic components that accessorize the models, e.g. electric motors, speed controllers (the throttle for an electric motor), plus the servos (the electromechanical devices that actually move a control - like the steering for a car, or the rudder and elevator for model airplanes). And it was in the later that I have found fame and fortune. OK, both terms are a bit strong, but nevertheless, it's within the area of servos that we're suddenly doing really well. Enough so that servos began to outstrip helicopter sales two years ago (more a reflection of how bad the model helicopter business had become for me than the sheer dollar terms of servo sales, but I digress). Anyway, to date, servos have become the tail that wag our financial dog. Of course, the Chinese are in this market as well, and we actually buy some components through them because we're not too stupid or bullheaded, but we retain some key advantages. Not least being we own three cells of CNC mills (four actually because I have one in my home shop upon which I prototype) and this gives us the ability to control quality here in the USA. However, the biggest advantage is my decision to sacrifice my old business model. Let me explain. In the old days, I largely functioned as a hybrid manufacturer/importer and sold our helicopter models to a distributor. They, in turn, sold them to stockists (hobby shops), for subsequent sale to the retail consumers. They (and we) all got a cut with the hobby shop having the most generous one (they must have a margin of about 40% to operate). The distributor's cut was about 15-20%, which again is about standard. However, Amazon has changed this. Not entirely Amazon because mail order hobby shops have been around a long time but overall, the willingness of the customers to buy sight unseen (other than photos and descriptions on a website) means the stockist is in a precarious position. recognizing this, I have long mulled a move toward a direct sales business model. This lets me either be more price competitive, or the route I have chosen to follow, allows me to offer more features for the same price. The point being that with my electronic accessories, because I branded them separately from my models - and - instead of selling them through my existing supply chain, I elected to self-distribute direct to the consumer means I've put myself in a new position from which to complete with the oriental giants. And cutting out a lot of middlemen has advantages. Not least being I can spend more on making a product that sells at the same price point that someone who imports, sells to the distributor, who sells to hobby dealers can contend with. However, with so many getting a cut, it becomes easy for me to incorporate features easy for consumers to discern. Moreover, because consumers aren't stupid, e.g. they can easily see where for the same money they get more servo from us (especially because I'm at pains to point out where we're better via comparison photos), they have responded to our products very nicely. Anyway, since I branded these products as separate and distinct from our previous product line (so as to not totally annoy our existing distribution chain in case I was mistaken in my assessment of the market), I launched a new website for these products - www.promodeler.com. However, the dirty secret of marketing and branding is making a website is easy. E.g. the bones of the website. However, it's the details like writing the copy plus all the many required photos where the real work lies. Frankly, it's grubby and tedious work. Worse, I cannot (in my experience) pawn it off on somebody else. why not? Simply because they don't know my business. E.g. they would be forever coming to ask me questions about the product during which time by the time I explain it, I may as well do it myself. And this is where I am now. Basically, for the last few months I have been nose to the grindstone neck deep in this kind of detail. And God willing I'll wrap the site up in time for the Christmas holidays so that I may turn my attention back to things of a personal nature . . . like my Silver Shadow! Last thing, to help you grasp what I mean by detail, eyeball the attached images. Not only do these photos needs be taken (which necessitates all coordination entailed in terms of getting people and products plus a pretty flying day to a remote field just to get the one shot of a model flying), but multiply this by many products and model photos. And don't forget the photos have to be taken with some consideration of how many different ways they need to be used (e.g. cropped to a certain size). Plus, there's the copy that goes with each of the photos, e.g. someone has to write it (again, that would be me). Oh, and before I forget, there's a huge amount of time just figuring out what size each of these photos need to be for their intended use on the website, e.g. 1400x600, and 320x240, and 600x600 pixels - and each with different copy! Plus there are multiples of photos for multiples of products! Fortunately, while it seems endless, it's not . . . but there's a lot to be accomplished in creating a professional website for selling products to consumers. Especially when the expectation is set by companies with seemingly limitless budgets, e.g. Amazon, eBay, Alibaba, Tencent, and more. Anyway, we're getting there - https://www.promodeler.com/DS160CLHV - is one of about a dozen servos in our lineup. This product entry is the only one that's fully complete. By this I mean there are five tabs; Description, Specifications, Comparison, TL:DR, and Reviews and each is finished. If you have a few minutes to kill, take a look and scan to see what I mean regarding writing the copy, taking the photos, making the drawings, as well as creating the comparison charts for how we match up to our oriental competitors like Savox, MKS, Hitec, Futaba, and others. Anyway, right now we're gaining a solid reputation for making the best servos on the planet - and - offering them at a fair price and only after they're all done will I have my life back. In closing, many thanks for letting me share why it is I have been MIA on the RR forum and please let everyone know that yes, we survived Irma, and that yes, I'll be back in due course. Finally, feel free to post any, all, or none of this (including photos) because who knows, perhaps there are some within our group who share an interest in models as well. Cheers, John Beech I am looking forward to John's return and the continuation of his involvement. For those interested, I have included John's images as the following ZIP file: . |
Larry Kavanagh
Prolific User Username: shadow_11
Post Number: 116 Registered: 5-2016
| Posted on Wednesday, 29 November, 2017 - 09:52: | |
Thanks for the follow up information David. Wishing John every success with his business venture, his customer reviews are most encouraging. |
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