HobbyKing.com New Products Flash Sale
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Old Sep 16, 2011, 08:40 AM
Eccentricus Magnus
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Hobby King makes 300% profit. .horrible customer service too

Just wanted to show some people the little gems I found.

In your Hobby King account page, they have a thing called "Customs Inv" tab on each order. . click on it. . You will see what THEIR cost is for the Items/postage for your purchase. Here's a quick comparison of some orders I had filled:

Order1:
MY COST:
19676 HobbyKing 4B6 Balance Charger Plus Accessori 1 Reserved ($77 item)
16773 ZIPPY Flightmax 1000mAh 3S1P 15C (USA Wareho 2 Reserved ($5.50 ea items)

Shipment USPS Parcel Post 5-6Day US-PP $12.95
Taxes $0.00
Total $100.04
THEIRS:

HK4B6 1 HobbyKing 4B6 Balance Charger Plus Accessories (200W) (USA Warehouse) $23.19ea $23.19
Z10003S15C 2 ZIPPY Flightmax 1000mAh 3S1P 15C (USA Warehouse) $1.47ea $2.94

That's a whopping 300% PROFIT

Order 2:
10296 Turnigy 2650mAh 6S 40C Lipo Pack ($47.50 ea) 3 Reserved
5442 APC style propeller 14x7-E 2 ($1.50 ea) Reserved

Shipment International (Registered) Air Mail 1.85kg $29.79
Taxes $0.00
Total $150.08

their Cost:

T2650.6S.40 3 Turnigy 2650mAh 6S 40C Lipo Pack $11.73ea $35.19
APC14x7-E 2 APC style propeller 14x7-E $0.45ea $0.90
for a total of $45 including shipping

This is 330% profit.

EVERY order is like this. . but try to get hold of them to resolve a customer service matter, and its always 48-72 hours delay in getting an answer. I don't care WHAT their prices are. . .I know when I'm being over-charged for something, and if they are making this sort of gross profit, then by god they can call their warehouse on the phone and ask someone why orders are delayed and fix your problems within an hour, instead of waiting a week.

Just wanted to let everyone know how badly they are being overcharged. . for the poorest customer service in the RC industry.

KrisW
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Old Sep 16, 2011, 08:44 AM
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LOL, you are soooooooooooooooooooooo far off mate.
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Old Sep 16, 2011, 08:50 AM
Eccentricus Magnus
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Originally Posted by phoenix racing View Post
LOL, you are soooooooooooooooooooooo far off mate.

The numbers do not lie. do you work for them?

KrisW
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Old Sep 16, 2011, 09:02 AM
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Yes and you are not looking at cost price, believe me, not even slightly, remotely close, you can not see the cost price, believe me, and if we are making 300% profit [which I can't write without smiling]........what is everybody else making?
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Old Sep 16, 2011, 09:12 AM
Eccentricus Magnus
Joined May 2006
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Originally Posted by phoenix racing View Post
Yes and you are not looking at cost price, believe me, not even slightly, remotely close, you can not see the cost price, believe me, and if we are making 300% profit [which I can't write without smiling]........what is everybody else making?
So, Mr. HK Apologist. .Tell me why my last order has taken 5 DAYS to not even leave the warehouse, and why your non-english speaking customer service reps cannot seem to even TALK to the warehouse, and why it always takes 48-72 hours to get an answer back, and why your inventory control is so poor that you cannot even guarantee that a placed order will have te items in stock to fill it?

Then tell me why I should buy anything from a company that blatantly posts it's huge profit per order right in front of the customers eyes. . takes MONTHS . .at the customers cost in return shipping, to replace defective items (about 10-15% failure rate), and cannot answer a simple question like . . .can I get my order refunded since you cannot fill it in less than a weeks time. . . or. . what is causing the delay. . . .

Please tell us all. . . . why I should line the pocket of some Chinese business tycoon. . and have no satisfaction with the service his company does NOT provide? With that much profit per item, I am sure you could rig up a pretty good communication network to keep your Customer Service reps in touch with the warehouse. . and that all CS issues would have a 1 hour turn around time.

People buy from HK because of perceived value . .KNOWING that HK makes a HUGE profit makes that perceived value turn into the perception of being ripped off. Add in the horrible customer service . . . .lack of answer. . extended delays for a simple answer on something. . . this is no longer a value. . its a liability.

And THEN. . .you tell ME I am off base??? Do YOU represent how the Chinese do business?? Is your answer REALLY what HK wants in the way of how someone representing their company is to respond to a customer?

KrisW
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Last edited by KrisW; Sep 16, 2011 at 09:20 AM.
Old Sep 16, 2011, 09:18 AM
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This thread was always going to be a non-starter that much was obvious, I don't work for CS, I work for the product Dept, so I will refer your questions to them. Your "facts" ( the profit margins) are miles and miles out, but you will believe what you want to anyway. Oh, and the company is not owned by "some Chinese business tycoon".
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Old Sep 16, 2011, 09:23 AM
Eccentricus Magnus
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Quote:
Originally Posted by phoenix racing View Post
This thread was always going to be a non-starter that much was obvious, I don't work for CS, I work for the product Dept, so I will refer your questions to them. Your "facts" ( the profit margins) are miles and miles out, but you will believe what you want to anyway. Oh, and the company is not owned by "some Chinese business tycoon".
You can't address the problem. . .so stay out of the thread please.

You are just trying to muddy the water. . .which shows everyone else just how bad you guys are at providing good service to customers.

Instead of solving problems, you institute damage control and disinformation and denials, as well as accusations against a customer, to try to sweep things under the rug.

The numbers do not lie. . YOUR words just prove HK is a bad company to do business with. Thank you for proving me right.

krisW
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Old Sep 16, 2011, 09:31 AM
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The numbers DO lie.....that is the problem. If you post something on here that is not true, prepare to be challenged.
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Old Sep 16, 2011, 09:57 AM
Eccentricus Magnus
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Originally Posted by phoenix racing View Post
The numbers DO lie.....that is the problem. If you post something on here that is not true, prepare to be challenged.

Prove it. . or retract the accusation.

You are really helping your company right now.

KrisW
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Old Sep 16, 2011, 10:10 AM
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Prove it by telling you what the profit margins are on a world wide forum? Oh come on, I have told you that you are wrong, most people will know you are wrong, you have chosen not believe me, there is nothing more to be said.
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Old Sep 16, 2011, 10:18 AM
Eccentricus Magnus
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Originally Posted by phoenix racing View Post
Prove it by telling you what the profit margins are on a world wide forum? Oh come on, I have told you that you are wrong, most people will know you are wrong, you have chosen not believe me, there is nothing more to be said.

If you cannot PROVE it. . . . .then you are lying. The numbers I posted are 100% accurate. . they are consistent cross the board for all HK items I have bought. . want to see EVERY invoice?? I can do that too.

The point is. . apologists like you prove HK is a bad company to do business with.

Again, thank you for proving I am correct.

KrisW
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Old Sep 16, 2011, 11:47 AM
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Originally Posted by KrisW View Post
If you cannot PROVE it. . . . .then you are lying. The numbers I posted are 100% accurate. . they are consistent cross the board for all HK items I have bought. . want to see EVERY invoice?? I can do that too.

KrisW
Bottom line Kris, if this is true, I should be able to buy the same products elsewhere for 1/3 the price. Please steer me to any store where I can buy the same items for 1/3-1/2 of the price that HK charges. I'd like that.
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Last edited by hoppy; Sep 16, 2011 at 12:03 PM.
Old Sep 16, 2011, 01:06 PM
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Quote:
Originally Posted by KrisW View Post
The numbers do not lie. .
krisW
Hello Kris

I believe the numbers DO lie. I have no way to confirm this but I've always looked at that packing slip as a way to avoid various taxes in different countries (fraud?). I means, it's clearly an incorrect customs declaration. I do the same thing when I bring items like cheese, wine, or gifts back from Europe in my suitcase.

Of course, no one from HK would ever say that's why the prices are so low on the packing slip.

SB
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Old Sep 16, 2011, 01:43 PM
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LOL...that is not HK's cost.Just how stupid do you think they are...leaving proprietary info out in the open ....not

imgumby
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Old Sep 16, 2011, 02:40 PM
Eccentricus Magnus
Joined May 2006
841 Posts
Quote:
Originally Posted by hoppy View Post
Bottom line Kris, if this is true, I should be able to buy the same products elsewhere for 1/3 the price. Please steer me to any store where I can buy the same items for 1/3-1/2 of the price that HK charges. I'd like that.

Your logic is ridiculous. . .

You are not buying from the VENDOR . you are buying from the supplier.

Do you REALLY think and RC Excel igniton costs the MSRP of $99? I can get them for $25 each, from the manufacturer.

Do you REALLY think a DA-150 engine costs DA $1400? They have less than half that invested . at $700 they would be making a substantial profit

Do you REALLY think a DLE-55 costs $350? I bought one, from a 3rd party source, for $200, and I guarantee that person made a substantial profit. the Manufacturers cost, to a buyer, is about $125.

You can get 35% airplanes, from China . like the Aeroworks Yak or Extra 260, for $150-175 directly from the factory. . They're MSRP is $1200.

Do you REALLY think a Foamy costs $25?
Do you REALLY think those cheap Turnigy motors and ESC's cost what they cost?
Do you REALLY think a 1000mA 20-30C LiPo cell costs costs $2 each? Try 25-30 cents each. . $1.50 for a complete 3s pack with wires and plugs, ready to install.

Those prices are pretty accurate of what the company actually pays for it's products, to sell to YOU at a substantial markup of 200-300%. .

AND YOU BELIEVE THEM. . .absolutely amazing

KrisW
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