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Old 12-24-2004, 07:38 PM   #1
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Default Airline Hobby Supplies prohibited from selling AC's Models

I just got the following email from Russell.

Hi Guys,

A couple of days after I announced the latest AeroClassics releases, I
received an email from ADI, one of the distributor for AeroClassics.
The text follows:

"It is with regret that I must inform you that we received a fax message
from Andrew Klein this morning, instructing us that Airline Hobby Supplies
is, from this point forward, prohibited from ordering any Aero Classics
products through ADI. Andrew stated in his message that AHS' pricing on
Aero Classics models was far too low, devalued the product, and as such, we
are no longer allowed to supply you with his product."

This in spite of the new release announcements containing the wording:

"AT THE MANUFACTURER'S REQUEST, WE WILL NO LONGER BE LISTING SUGGESTED
RETAIL PRICES.
IT WILL BE UP TO THE DISCRETION OF THE RESPECTIVE RETAILER WHAT YOU CHOOSE
TO CHARGE."

Needless to say this came as a complete shock, and since receiving this
email, I have made every attempt to contact Mr. Klein to discuss his
concerns, and hopefully resolve the situation. My calls to him left have
not been returned. Messages left on his answering service have been
ignored. My emails have not been responded to. My requests that he call
me made through ADI have been ignored.

So, unfortunately, I will not be able to provide ANY of the latest release
AeroClassics models, with my apologies for any inconveniences this may cause.

Thanks!



Russell Brown
Airline Hobby Supplies LLC
P.O. Box 2128
Chandler, Arizona
U.S.A. 85244-2128

Phone: 480 792 9589
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Old 12-24-2004, 07:56 PM   #2
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Quote:
Originally Posted by Mingjim
Needless to say this came as a complete shock, and since receiving this email, I have made every attempt to contact Mr. Klein to discuss his concerns, and hopefully resolve the situation. My calls to him left have not been returned. Messages left on his answering service have been
ignored. My emails have not been responded to. My requests that he call
me made through ADI have been ignored.

Andrew is in China until January which would explain why he isn't answering his phone in WA....

Not sure if he gets/checks his email while in China...

Then again....was Airline Hobby selling to low?

Never heard of them anyway........
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Old 12-24-2004, 08:00 PM   #3
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I just went to see this Airline Hobbies web site.....

The site hasn't even been updated since February 24th so it doesn't appear they're to interested in doing business anyway.....
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Last edited by JustPlaneCrazy; 12-24-2004 at 08:06 PM.
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Old 12-24-2004, 08:27 PM   #4
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Already posted on 400SH, but I'll say it again...

Perhaps it was because Russell was selling ACs for a dollar over wholesale?? Apparently not a very good business practice. It is Andrew's business and he can do what he wants to with it quite frankly.

I really think that it sucks that you are airing dirty laundry between to individuals on this forum.

He is not being ignored, Andrew is in China until January. Tell Russell to do his own dirty work, and to pipe down until then.

~Z~
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Old 12-24-2004, 08:32 PM   #5
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AHS has been in business longer than most 1/400 retailers. Now, they primarily focus on plastic kits/decals etc, but they do carry darn near every thing diecast from every line. He just doesn't update the front page that often.
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Old 12-24-2004, 09:05 PM   #6
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Russell Brown is a very nice guy. Last year he invited me and my wife into his house to rummage through his merchandise. I spent a few dollars while there, and I intend to do more business with him in the future.
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Old 12-24-2004, 09:06 PM   #7
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All the more reason as to why I don't buy AC.
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Old 12-24-2004, 09:34 PM   #8
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mingjim, greetings from China!
As -Z- has correctly stated, this is not the place to air dirty laundry, or do AHS's dirty work, and expect a favourable response.
For the record, my office is CLOSED from 12/12 thru Jan.10, 2005.
Merry Christmas & Happy New Year!
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Old 12-24-2004, 09:45 PM   #9
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Quote:
Originally Posted by aklein707
mingjim, greetings from China!
As -Z- has correctly stated, this is not the place to air dirty laundry, or do AHS's dirty work, and expect a favourable response.
For the record, my office is CLOSED from 12/12 thru Jan.10, 2005.
Merry Christmas & Happy New Year!
Happy Holidays Andrew:

This is not a personal attack, but a notice for the customers who may be planning or already order planes from Russell (That is all this was). For the record; I was not asked to do this. I purchase my AC models from other retailers. I do not get into personal attacks; they are not worth starting.

Have a good trip back.

Ramon
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Last edited by Mingjim; 12-24-2004 at 09:46 PM.
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Old 12-24-2004, 09:53 PM   #10
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Quote:
Originally Posted by Mingjim
This is not a personal attack, but a notice for the customers who may be planning or already order planes from Russell (That is all this was).

Since he only sells his planes to his customers through email, one could assume all his customers got this very same email and it was not necessary to post it on all the public forums.....
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Old 12-24-2004, 10:05 PM   #11
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Quote:
Originally Posted by JustPlaneCrazy
Since he only sells his planes to his customers through email, one could assume all his customers got this very same email and it was not necessary to post it on all the public forums.....
He doesn't just sell his planes via the Internet. He takes phone orders too and by the way, not all customers get emails (the option of getting emails notifying of arrivals is optional in a customer's acount). I think if you ever did business with Russell (which it appears you have not) you would probably feel differently about what you are writing.
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Old 12-24-2004, 10:10 PM   #12
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Quote:
Originally Posted by Mingjim
I think if you ever did business with Russell (which it appears you have not) you would probably feel differently about what you are writing.

No, you are correct, I've never done business with him or have any idea who he is, probably the nicest guy on the planet, however, selling models at $1 over cost is not good business (if that's what he's doing)....
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Old 12-24-2004, 10:12 PM   #13
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Quote:
Originally Posted by JustPlaneCrazy
No, you are correct, I've never done business with him or have any idea who he is, probably the nicest guy on the planet, however, selling models at $1 over cost is not good business (if that's what he's doing)....
That I have to agree with you. I would not sell planes @ $1 over the cost.
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Old 12-24-2004, 10:44 PM   #14
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Originally Posted by JustPlaneCrazy
No, you are correct, I've never done business with him or have any idea who he is, probably the nicest guy on the planet, however, selling models at $1 over cost is not good business (if that's what he's doing)....
And you know this how? And if this happens to be how this particular retailer chooses to keep a low profit margin for himself, what concern of it is yours. Has Aeroclassics established a definitive guide that requires retailers to its products at above a certain price or is it a suggested retail price?

Furthermore, it appears that AHS was given no advanced opportunity from Aeroclassics to address this alleged situation.

And while we're on the topic of "good business" it well known how you, along with others are part of an elite inner circle and are privileged to get advanced notice of upcoming releases to make certain you are able to obtain the models you need. Is that good business?
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Old 12-24-2004, 10:45 PM   #15
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Quote:
Originally Posted by aklein707
mingjim, greetings from China!
As -Z- has correctly stated, this is not the place to air dirty laundry, or do AHS's dirty work, and expect a favourable response.
For the record, my office is CLOSED from 12/12 thru Jan.10, 2005.
Merry Christmas & Happy New Year!

Okay...and if your office is closed...then why was the fax sent to AHS this morning from ADI?

Last edited by Flying Ace; 12-24-2004 at 10:57 PM.
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Old 12-24-2004, 10:54 PM   #16
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Quote:
Originally Posted by JustPlaneCrazy
I just went to see this Airline Hobbies web site.....

The site hasn't even been updated since February 24th so it doesn't appear they're to interested in doing business anyway.....
Actually quite the opposite, if you call or email him......
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Old 12-24-2004, 10:57 PM   #17
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Quote:
Originally Posted by ktaylor
And you know this how?
Try reading my post,
(if that's what he's doing)

Quote:
And while we're on the topic of "good business" it well known how you, along with others are part of an elite inner circle and are privileged to get advanced notice of upcoming releases to make certain you are able to obtain the models you need. Is that good business?
What?

Has nothing to do with good or bad business, I know Andrew personally and he has a section on my forum, what's the matter with that?

All the Aeroclassics are sold/listed on most sites when announced and are available to you as well as me....

Don't have to be in any 'inner circle' to be smart enough to click any web stores 'buy' button

I was getting any Aeroclassics model I wanted long before I had 400sh or knew Andrew Klein, and for the record, none of my models come from Andrew...
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Last edited by JustPlaneCrazy; 12-24-2004 at 10:59 PM.
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Old 12-24-2004, 11:01 PM   #18
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Quote:
Originally Posted by ktaylor
Okay...and if your office is closed...then why was the fax sent to AHS this morning from ADI?

ADI is the distributor, Andrew does not work or have an office at ADI....
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Old 12-24-2004, 11:03 PM   #19
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Originally Posted by JustPlaneCrazy
Try reading my post,
(if that's what he's doing)



What?

Has nothing to do with good or bad business, I know Andrew personally and he has a section on my forum, what's the matter with that?

All the Aeroclassics are sold/listed on most sites when announced and are available to you as well as me....

Don't have to be in any 'inner circle' to be smart enough to click any web stores 'buy' button

I was getting any Aeroclassics model I wanted long before I had 400sh or knew Andrew Klein, and for the record, none of my models come from Andrew...
I have read all your posts thoroughly and the and collectively you seem convinced that there is an issue with AHS's pricing. It is senseless for us to start debating the other issue, but I know your relationship with AK will prejudice you...fine so be it .

Let's deal with the other issue at hand then if you like.
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Old 12-24-2004, 11:06 PM   #20
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Quote:
Originally Posted by JustPlaneCrazy
ADI is the distributor, Andrew does not work or have an office at ADI....

Maybe you need to take a closer look at the at the original message? Sipping a little too much eggnog?

"It is with regret that I must inform you that we received a fax message
from Andrew Klein this morning, instructing us that Airline Hobby Supplies
is, from this point forward, prohibited from ordering any Aero Classics
products through ADI. Andrew stated in his message that AHS' pricing on
Aero Classics models was far too low, devalued the product, and as such, we
are no longer allowed to supply you with his product."
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Old 12-24-2004, 11:10 PM   #21
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Originally Posted by ktaylor
I have read all your posts thoroughly and the and collectively you seem convinced that there is an issue with AHS's pricing. It is senseless for us to start debating the other issue, but I know your relationship with AK will prejudice you...fine so be it .
Well, I agree, there really is no reason to debate. The issue of AHS's pricing was brought up by another person on another forum (not here). I have no idea if it's true, that's why I said (if that's what he's doing)


Quote:
Let's deal with the other issue at hand then if you like.
What other issue?
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Old 12-24-2004, 11:11 PM   #22
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Quote:
Originally Posted by ktaylor
Maybe you need to take a closer look at the at the original message? Sipping a little too much eggnog?

Probably
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Old 12-24-2004, 11:12 PM   #23
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Originally Posted by JustPlaneCrazy
Well, I agree, there really is no reason to debate. The issue of AHS's pricing was brought up by another person on another forum (not here). I have no idea if it's true, that's why I said (if that's what he's doing)




What other issue?
THe price issue
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Old 12-24-2004, 11:14 PM   #24
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Probably
I got to go pour myself another drink myself....Merry Christmas.
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Old 12-24-2004, 11:17 PM   #25
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Originally Posted by ktaylor
I got to go pour myself another drink myself....Merry Christmas.

Me toooooooooooo

I don't even know why I'm involving myself in this thread (burp) just killing time waiting for my kids to go to sleep so I can play Santa


Merry Christmas to all, and a very happy, diecast filled New Year!
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Old 12-24-2004, 11:24 PM   #26
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Originally Posted by ktaylor
Okay...and if your office is closed...then why was the fax sent to AHS this morning from ADI?
Mr. Klien is in China as has been stated by many and I do not recall seeing a fax machine in his office. I feel badly for Russell but I feel too that he can resolve Mr. Klien's issues with him when AK returns from his holiday.

FYI, Andrew does not spend his time leaking information about up coming releases to an "inner circle" of anybody. I have lunch with AK about twice a week. I don't hear him telling anyone, other than his retail base, what their future has in store for them.

Every month I am suprised at what has been announced because I have a bad case of short term memory, so I tend to forget about when I hear or see and I don't really care about it anyway.

It seems to me the only people that have any advanced information are the people who need to have it. ADI and the retailers that purchase directly from AeroClassics. If you want to know the early information all you need to do is visit the JetCollector or EZToys websites. Because they presell they post product and price as soon as they have a confirmation as to what has been shipped from China.

Guys, it is Christmas. It is time for "Peace on earth and good will toward men."

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Old 12-24-2004, 11:28 PM   #27
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Quote:
Originally Posted by ktaylor
Maybe you need to take a closer look at the at the original message? Sipping a little too much eggnog?

"It is with regret that I must inform you that we received a fax message
from Andrew Klein this morning, instructing us that Airline Hobby Supplies
is, from this point forward, prohibited from ordering any Aero Classics
products through ADI. Andrew stated in his message that AHS' pricing on
Aero Classics models was far too low, devalued the product, and as such, we
are no longer allowed to supply you with his product."
1/ Michael, that message is stated in the third person. My email to ADI was during the first week of 12/2005.

2/ I will not tolerate the "dumping" of a product I work so hard to produce. Full stop. It is not open to negotiation. Pre-orders on a very limited edition product at $1 to $2 over cost is only going to damage my business, and I will protect my business interests vigorously.

3/ I wish we had eggnog in China so I could join you for a drink over cyberspace; oh well! Merry Christmas to you all!
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Old 12-24-2004, 11:31 PM   #28
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Quote:
Originally Posted by JustPlaneCrazy
Me toooooooooooo

I don't even know why I'm involving myself in this thread (burp) just killing time waiting for my kids to go to sleep so I can play Santa


Merry Christmas to all, and a very happy, diecast filled New Year!
Toddski....Я могу только отобразить то, на что это будет походить, когда госпожа Клос прибывает от Матери Россия. Может небеса помогать нам всем, товарищу.

I know what your new year has in store for it! Tasty pies and a cozy home, my man.

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Old 12-24-2004, 11:36 PM   #29
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Quote:
Originally Posted by goldy
Toddski....Я могу только отобразить то, на что это будет походить, когда госпожа Клос прибывает от Матери Россия. Может небеса помогать нам всем, товарищу.

I know what your new year has in store for it! Tasty pies and a cozy home, my man.

Yeah, well I can think of a couple others things more important than pies
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Last edited by JustPlaneCrazy; 12-24-2004 at 11:36 PM.
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Old 12-24-2004, 11:42 PM   #30
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Todd & Norm.. Merry Christmas!!
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Old 12-24-2004, 11:48 PM   #31
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Quote:
Originally Posted by aklein707
Todd & Norm.. Merry Christmas!!
Thank you Andrew, and a very Merry Christmas to you and
и очень счастливый и преуспевающий новый год!


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Old 12-24-2004, 11:58 PM   #32
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Quote:
Originally Posted by aklein707
1/ Michael, that message is stated in the third person. My email to ADI was during the first week of 12/2005.

2/ I will not tolerate the "dumping" of a product I work so hard to produce. Full stop. It is not open to negotiation. Pre-orders on a very limited edition product at $1 to $2 over cost is only going to damage my business, and I will protect my business interests vigorously.

Once the product has left the retailer, you've made your money so wtf do you care what they sell for. If you are so worried about, then maybe you should have a msrp.

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Old 12-25-2004, 12:00 AM   #33
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Having just read the responses to Ramon's similar posting on BUZZ, except for Chris G, the rest continue to prove why I continue to label them the "pricks and asssholes" of the hobby. Every single remark was devoid of logic, full of negative emotion, and made without thought. (The far Left wing of the Liberal Democrats of this hobby).
I suppose when they come out of their fantasia into the real world they might understand. On the other hand, the likes of Doug Kenaga, Herb Greenwood, David Mich, et al are beyond the help of even our good Lord. Merry Christmas anyways, to those lost souls over on the "dark side".
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Old 12-25-2004, 12:06 AM   #34
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Quote:
Originally Posted by SMAC_Groupie
Once the product has left the retailer, you've made your money so wtf do you care what they sell for. If you are so worried about, then maybe you should have a msrp.
How can I even take such a moronic statement seriously; go to business school and grow up!!
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Old 12-25-2004, 12:16 AM   #35
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Quote:
Originally Posted by aklein707
Todd & Norm.. Merry Christmas!!
Same to you and yours, AK. Hey...if you and little LK happen by the Happy Yes Yes cafe buy him a bubble tea on me.

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Old 12-25-2004, 12:33 AM   #36
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Quote:
Originally Posted by goldy
Mr. Klien is in China ... Mr. Klien's issues with him ...

I have lunch with AK about twice a week.
Then I would hope you'd at least know how to spell his name correctly.
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Old 12-25-2004, 01:28 AM   #37
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Quote:
Originally Posted by aklein707
How can I even take such a moronic statement seriously; go to business school and grow up!!
I guess that you don't understand that the retailers profit or loss is theirs. If someone wants to sell lower, it's good for the consumer, but you've still made your money. Maybe it is you who should crack open a business book.
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Old 12-25-2004, 01:45 AM   #38
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Originally Posted by ktaylor
Okay...and if your office is closed...then why was the fax sent to AHS this morning from ADI?
It wasn't...ADI closed for the Holiday yesterday...the fax in question was sent from AHS to Ming...We never sent a "fax" to AHS...

And just for the record, this all occured about 2 weeks ago!

Please get your "fax" straight before chiming in...

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Old 12-25-2004, 09:12 AM   #39
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When you guys keep chatting in Russian, would you please put more efforts in producing and promoting more Russian bird models? Say An-225, IL-62 and up, Tu-134, etc ...... Even some bored or hated (if you feel) Chinese liveries on Russian bird ......

Merry Christmas and ...... to EVERYONE!
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Old 12-25-2004, 11:12 AM   #40
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For those that have never dealt with AHS, it is a one man home based operation. No employees, or storefront. His operation deals primarily to plastic modellers. His prices are generally lower across the board on everything he sells. I doubt very much he would continue to operate at a loss, so who's to say he doesn't cover his costs at what he sells his stuff for?

I generally don't jump in to these things, but what bothers me about this is that he is my almost exclusive supplier for both model supplies as well as diecasts, and that isn't going to change.

So Andrew is right, it's his business and he can control it how he sees fit.
And I can vote with my wallet. Luckily all AC releases can be done in 1/144 for about half the price.
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Old 12-25-2004, 11:22 AM   #41
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Quote:
Originally Posted by aviatorisu
It wasn't...ADI closed for the Holiday yesterday...the fax in question was sent from AHS to Ming...We never sent a "fax" to AHS...

And just for the record, this all occured about 2 weeks ago!

Please get your "fax" straight before chiming in...

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Excuse me Mr. flunkie, "Email"

"A couple of days after I announced the latest AeroClassics releases, I
received an email from ADI, one of the distributor for AeroClassics.
The text follows:"

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Old 12-25-2004, 12:12 PM   #42
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Default MY thoughts on 1:400 in general

Quote:
Originally Posted by V1UHOH
For those that have never dealt with AHS, it is a one man home based operation. No employees, or storefront. His operation deals primarily to plastic modellers. His prices are generally lower across the board on everything he sells. I doubt very much he would continue to operate at a loss, so who's to say he doesn't cover his costs at what he sells his stuff for?

I generally don't jump in to these things, but what bothers me about this is that he is my almost exclusive supplier for both model supplies as well as diecasts, and that isn't going to change.

So Andrew is right, it's his business and he can control it how he sees fit.
And I can vote with my wallet. Luckily all AC releases can be done in 1/144 for about half the price.

It pains me to say this, by I have supported and gone at great lengths to stay away from debates as this and assisted ADI with positive commenatry on their models. BUt things don't add up. Shouldn't a business be cutomer oriented?

The retailer is essentially the collectors ' first line of access to the models. But whatever AK is trying to accomplish, it will only affect the collectors in the end. Not me personally as I am not much of a 1:400 collector anymore. But I will offer up a perspective of others to consider.

The 1:400 scale, which was a big part of my decision to move elsewhere, can offer only so much. If the collectors read the forums close enough, there is incessant debate over the quality of Gemini Jets and there is only so much accuracy of the AC products, along with Big Bird and Dragon for that matter. Since the AC line apparently appears to be among the higher end in terms of cost, I will use this as a benchmark. At near $30 each retail, approximately 2 can get you a nice Herpa 200 727, 3 of those can put you into a nice Inflight 200; around six 1:400 planes, you're talking a fine handcrafted Bader model, although I advise picking these up at a show or on the secondary market. I decided early this year that the 1:400 scale had to many shortcomings at $18-30 each.

I spent the last 5 years developing a diversified collection, including 1:400. And I've basically I have come to the conclusion that 1:400 creates clutter. I still treasure certain models of that I have, but between mould innacurracies, innacurate gear that is often crooked, paint flaws, and overall lack of detail and small size, and the relative cost collecting in this scale almost becomes comical. Factor in the actions of the manufacturers, the sometimes mad rush to get a "hot release" and the old phrase "If you snooze you loose" like we're all back in the '80's trying to get those fugly cabbage patch kids and its probably the goof of all time.

I accepted alot of this over the last 5 years but finally decided that it was better to have fewer high quality models than many inferior ones.

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Old 12-25-2004, 12:26 PM   #43
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Quote:
Originally Posted by freewing
When you guys keep chatting in Russian, would you please put more efforts in producing and promoting more Russian bird models? Say An-225, IL-62 and up, Tu-134, etc ...... Even some bored or hated (if you feel) Chinese liveries on Russian bird ......

Merry Christmas and ...... to EVERYONE!
I have done just that. If you like the Russian airframes and the liverys then 2005 will be a good year for you, Freewing.

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Old 12-25-2004, 01:18 PM   #44
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Quote:
Originally Posted by Mingjim
Happy Holidays Andrew:

This is not a personal attack, but a notice for the customers who may be planning or already order planes from Russell (That is all this was). For the record; I was not asked to do this. I purchase my AC models from other retailers. I do not get into personal attacks; they are not worth starting.

Have a good trip back.

Ramon
Ramon,
Andrew is absolutely right to stop those dangerous dumping game,
dumping AC's products with very low price will prevent other retailers to carry Aeroclassics which ultimately hurts both manufacturers & collectors.
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Old 12-25-2004, 02:05 PM   #45
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There is absolutely nothing unusual in the business world about manufacturers prohibiting retailers from dumping their products. This is between Andrew, ADI, and the retailer. It is no one else's business - PERIOD.
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Old 12-25-2004, 02:40 PM   #46
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Quote:
Originally Posted by KenB
There is absolutely nothing unusual in the business world about manufacturers prohibiting retailers from dumping their products. This is between Andrew, ADI, and the retailer. It is no one else's business - PERIOD.
I beg to differ, Lapdog......

Collector's get screwed out of another retail source. That makes it everyone's business. Not that Jabba the Klein gives a hoot about that.
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Old 12-25-2004, 02:42 PM   #47
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Quote:
Originally Posted by KenB
There is absolutely nothing unusual in the business world about manufacturers prohibiting retailers from dumping their products. This is between Andrew, ADI, and the retailer. It is no one else's business - PERIOD.
While I agree with you, Ken, you have to know that when someone raises a flag someone else is bound to salute it. So it is with a forum. The talk and rebuttle has to happen.

To sell something at a very low price hurts both the retail base and the customer base. When one retailer offers a product far below that of the norm then eventally a majority of the customer base will gravitate to that price or certainly to that business. The low price retailer will gain a majority of the business while at the same time all of the income will be sucked from the retailers who practice MSRP pricing.

The MSRP retailer orders less product from the distributor, a larger portion of the product flows to the discount retailer because his demand is now out stipping his supply.

To Mr. Klien's point. He does not want one discount retailer controlling the price of his product nor does he wish for a trend to begin that will dry up the supply and profits for his product to the broad majority of retailers that Mr. Klien must be loyal to. They are probably complaining to him about the low pricing. What else can he do but respond on their behalf? If he ignors them then he will lose their business. In the end it is only he and Russell. A one manufacturer and one retailer show.

What is Adamsjets now orders less AC from ADI because he cannot compete with Russell. You, as a consumer, would be forced to stop buying from Luis (AJ) because his inventory and selection had disappreared. You would have to buy from Russell. But Russell is a one man show and he is so busy that he can not fill all of his orders. This renders him inefficient and it leaves you with out an opportunity to by an AC model. Russell is so busy that he has to hire more people and as a result his selling price goes up because he now has the same expenses that AdamsJet had when he was selling AC models. The cycle came full circle and Russell is the only game in town because all of the MSRP retailers went away a long time ago.

How can this be good for anyone? Mr. Klien did not create one of the most formidable diecast model business going nor does he own and operate one of the most successful aviation fueling business in Eastern Russian because he is a dumb man. Hell...former president Jimmy Carter dropped in last month to buy AV gas from Andrew. Every major airline that flies equipment that needs a fuel stop enroute from either the US to Asia or the reverse stops at Andrew's Russki gas station.

Come on, guys, what we are talking about here is a business decision that more benefits all retailers who carry the some product lines as does Russell. Don't get me wrong I would love to see Russell thrive in his business. By all accounts he is a great guy and this is America after all. We also need to be both resonable and smart about how we go about conducting our business. That thought comes from my retailer mind set.

Goldy

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Old 12-25-2004, 03:16 PM   #48
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Hi Guys,

First, you will all notice I did not start this.... the emails were sent yesterday to my customers in the hope that they could get their models elsewhere.

To clear up a few facts:

I received the emailnotification from ADI (Chris) on November 30th. On that date, and almost every day since I have called Mr. Klein's number, left many messages (though not every time).

Secondly, until I read the above threads, I did not believe I was "dumping" the models, or that I was accepting pre-orders "at $1 to $2 over cost". So, I went back to my announcement, and to the email from ADI with the retailer prices. I found that ONE model was "pre released" at $3.75 over my cost, the rest a $4 over cost. This represents an average 21% markup across the releases, 23% on some, and on one model, I had a 30% markup. Hardly "dumping". If you would like to see the "wholesale" prices from ADI and my prices to see for yourself, please contact me personally - [email protected].

Regular prices (ie if you don't advance order, and if I have any left) are $3 to $4 more again. So, I would ask he who accuses me of "$1 over cost" of please presenting your FACTS. Sounds to me more like that one of my customers received the announcement from me, editted the prices, and tried to get another retailer to "price match". If this is the case, and that retailer sees this, please contact me to discuss! 480 792 9589.

Third, I have asked Chris at ADI to forward a message to Mr. Klein (and with this post I respectfully ask again) that I would like to speak or exchange emails, to discuss the issue, and come to a mutually agreeable solution. Chris says he has passed along the message. Andrew - please contact me, I am willing to discuss this! This all happened long before 12/12. Andrew - I realise you have other important work to do, but I think we can resolve this fairly quickly!

A few additional points:
Yes, my www site hasn't been updated since Feb 2004. Two reasons - one is that my ISP was sold, and I don't know who to, or who to call for support! They changed the password on me, I cannot get in to update it. Yes, I will be changing ISP's in the new year.

Yes, I deal with plastic modellers (1/144, 1/200, 1/72, 1/100 scales), but I have also been involved with diecasts since the VERY FIRST Dragon Wings, Gemini Jets, JetX, etc. I have two rooms in my home dedicated to the business - one for plastic kits and decals, one for diecast. The diecast room is the most full of the two, I have an inventory approaching $100,000 at book value. So, I am not "playing games" here, but trying to make a few $$$ in a very competitve market.

Thanks!
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Old 12-25-2004, 03:30 PM   #49
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Quote:
Originally Posted by goldy
...The low price retailer will gain a majority of the business while at the same time all of the income will be sucked from the retailers who practice MSRP pricing.
Goldy
Again, please get your facts straight. There is no MSRP for Aeroclassics!! I will remind you again of what we retailers receive on EVERY AeroClassics announcement. Sorry for the CAPS, this is how ADI publishes it:

"AT THE MANUFACTURER’S REQUEST, WE WILL NO LONGER BE LISTING SUGGESTED RETAIL PRICES. IT WILL BE UP TO THE DISCRETION OF THE RESPECTIVE RETAILER WHAT YOU CHOOSE TO CHARGE"

Besides, do you know what the "S" in MSRP stands for?

Thanks!
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Old 12-25-2004, 04:18 PM   #50
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Quote:
Originally posted by
hugo:
I assume that he is "loss-leading" offering AC at below cost so that people will enter the shop and then buy more goodies from the rest of the stock. But that is surely between the manufacturer, the wholesaler (who may be one and the same) and the retailer. If AK was to insist on a minimum retail price that his goods were sold at where-ever that a) would probably be illegal (rpm is no longer legal in the UK) and impossible to police internationally.

I'm not defending AK as I don't know the ins and outs of this particular case but it is significant that the same old pro and anti names spring into action - yawn.
supermarkets do this all the time. You get something pretty cheap and leave the place with few more products.

I doubt that by not keeping prices up the value of the product will be affected. For the most the value of aeroclassics have increased over time. Some other models regarless of fine attention to details, beautiful scheme and a great mould, still do not increase value or becomes a sold out.

Aeroclassics have been the liking/flavour of the month for a long time for most of us. We collectors are very please with most releases. I don't see the need to enforce the value of the said product.

Now, some few models still available and offered a low prices if not as a special promotion over the net. Does that makes the product less valuable? I think not!!

I like to have the option of buying from a garage/home business operation if I want to.

Merry X-mas to All!!

P/S: Now that I gave my opinion you may want to close this thread. Thanks for waiting.
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