Remote - Hobby
Hobby and Engineering Supplies now stocks very few remote control products, but we will continue to list quality brands on our site for you to purchase if you desire.
We will continue to provide a huge range of hobby and engineering supplies so long as the product range is economically viable.
The main reasons we have decided to no longer stock high value remote control products are
- Australian Government Policy supports consumer spending overseas rather than locally.
- Lack of support from Australian RC wholesalers.
To elaborate on the above...
Australian Government Promotes Overseas Buying
The Australian Government provides an incentive to consumers to buy products from overseas companies by allowing up to A$1000.00 of purchases into Australia without having to pay Goods and Services Tax or duties. Australian businesses however must charge the consumer Goods and Services Tax no matter how small the sale. Additionally regular business importers must bear the following costs that needn’t be bourne by consumers purchasing under $1000.00 from overseas companies.
- Duty - usually an additional 3-5%
- Import clearance charges
- Insurance - Ad-hoc imports by consumers are rarely insured, whereas it is prudent for a business to have blanket cover insurance on all their imports. This is a substantial cost and must be apportioned between all imports. Regular consumers rarely factor this into their calculations when determining that an item "looks" cheaper from an overseas source. It’s only when an item is lost or damaged in transit that they realise that buying overseas can sometimes end up being quite costly.
- Bank fees - Ad-hoc importers rarely factor in the fees they pay to Paypal or their bank for currency conversion. They often compare prices based on the daily advertised exchange rates and don’t take a close look at what exchange rate (and fees) they will actually be charged.
- Funding the stock they hold on the shelf.
To summarise, it has become increasingly difficult to compete in high value hobby goods due to cheap goods available overseas, consumers underestimating add-on costs, and support for overseas buying by the Australian Government.
Lack of Support from Australian Hobby Wholesalers
The Australian hobby wholesale market largely comprises of sole importers for various brands. Often these brands are of quite good quality, and usually a lot better quality than the products that can be found on cheap overseas online stores. Unfortunately many Australian importers don’t provide accurate information regarding product availability, backorder updates or even accurate up to date price lists. This makes the retailer look bad in the eyes of the customer, not the wholesaler. We have only been in the hobby industry since 2008 and during that time we have had to drop more than 10 "hobby wholesalers" due to extremely poor service. Compare this to our sister companies that have been dealing in industrial supplies since 1994 and have only droppped 2 industrial suppliers for poor service.
Couple the poor service with the fact that many Australian Hobby Wholesalers also feel a need to sell their product through their own "retail" stores with very low margins above their "wholesale" price. By doing this they they are almost forcing their resellers to sell product at ridiculously low margins in order to compete with the wholesaler themselves.
We’re Here to Stay
It’s not difficult to work out why so many hobby shops go out of business within a few years and why even some well established hobby shops have been closing their doors or reducing staff numbers recently. Thankfully we have the support of our sister companies and we can offer our hobby customers a much more diverse range than most hobby stores. We won’t stock products from suppliers that don’t support the retailer, and we won’t stock products where the Government has made it easier for you to buy from overseas. But we will continue to provide quality products and great prices in the 3245 products we supply. Our product range will be constantly undergoing changes to ensure that we are here to stay.
The Other Hidden Costs
By far the most detrimental effect the Australian Government policy of promoting overseas buying over local businesses is the effect on the local economy. Consumers rarely take this into account when weighing up how much they are going to save by buying overseas because it doesn’t hit them immediately. It only hits them in a round about way. But consider this. You may think you have saved $100.00 on a camera or a remote control buggy by buying it overseas, but you are also contributing to the $Millions of lost GST this policy is costing the Government and the $Millions in profit that Australian businesses are missing out on.
Whilst it may seem prudent to save a few dollars bypassing local businesses when you’re not in a hurry for the items you purchase, you may find that over time certain items are no longer profitable for Australian businesses to carry on the shelf. In future, when you want something in a hurry you may find that you have no choice other than to purchase from an overseas source and wait - and hope - for it to turn up.
But who cares about that right? Well, you should.
The $Millions in lost GST means less funding for Australian health care, less funding for Australian education, less funding for Australian roads and much more. If the shortfalls are not made up from other taxes it means lower standards of all Government funded projects that are meant to benefit all Australians. If the shortfalls are made up through other taxes, it means increases in existing taxes or new taxes. New taxes on let’s say mines and carbon emmissions to help cover shortfalls in GST result in increased prices. Increased prices not just for non essentials but also for essential goods and services like water, power, parking, food, transport, petrol and almost everything you use on a day to day basis. So when your bills start going up, just ask yourself if saving that $100.00 on your overseas purchase really saved you $100.00.
The $Millions in lost business profits due to overseas spending also hits you in the long run. Less profits for Australian businesses means less money that those businesses have available to spend with YOUR employer or YOUR business. So if your own business or employer is currently experiencing a downturn in sales, just ask yourself if your $100.00 saving by buying overseas could be contributing to this. Perhaps your job is on the line because your employer is experiencing a downturn in sales. Well indirectly, your overseas buying is contributing to your own job loss. Once you lose your job, just consider how much you really saved when you thought you saved $100.00 by buying overseas.
Buying overseas Summary
- Risky if you don’t know the supplier
- Difficulties with warranty claims
- Hidden costs most people don’t factor in
- Risky if uninsured
- Contributes to job losses in Australia
- Contributes to lower standards in Australia
Despite the above, the Australian Government wants you to bypass local businesses and buy overseas. We’re not large enough to set up offshore distribution points like Harvey Norman have done, and we are certainly not ready to go the way of Payless Shoes Australia, Hobbies R Us, or any of the thousands of local businesses that fail yearly due to the Governments policy of making the Australian Retail environment hostile to local businesses. We will continue to promote products that still present us with an opportunity to service our customers.
Other Views on This Topic
- Lew warns of job losses
- A review backs GST for online imports
- How the Government is making Australia Unaffordable
- Thinkers Lounge
- Australia the Silly Country - Online Consumers are Hurting their own Futures
- Online Shopping (importing) is Short Changing Society
- US Shops target Australia - and Australians are only too happy to send their money overseas
- Lobby Group Pushes for an Even Playing Field
For a huge range of bearings online please visit the Bearing Shop Online website.
The Small Parts and Bearings website has a much larger range of engineering supplies.
For the best range of miniature and small bearings please try the Miniature Bearings Australia website. Miniature Bearings Australia also list a large variety of miniature engineering products.
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