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Carl Goldberg Out of Business?

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MNeume3675

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Aug 25, 1999, 3:00:00 AM8/25/99
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Iv'e tried to order both a Goldberg Bucker and Sukoi and can't get either.
They are "temporarily out of production". Does anyone know what's going on?

Mike

Harry Kolomyjec

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Aug 25, 1999, 3:00:00 AM8/25/99
to
Models are usually manufactured in turn, they run one kit for so
many, then gear up for another kit run. If the kits' popular,
they'll run out.
The Sukhoi was very popular, I got one, probably why you can't
get one.
Anyway, I sure hope Goldbergs OK, their planes fly the best in my
opinion.
Good Luck,

Harry

kentmi...@my-deja.com

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Aug 25, 1999, 3:00:00 AM8/25/99
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Went to my local hobby store Monday to but the CG
Sukhoi. Was told the same thing. Hold on
production for and enginering change. Model will
be available in about a month.

In article <19990824201029.05305.00004086@ng-
fe1.aol.com>,


mneum...@aol.com (MNeume3675) wrote:
> Iv'e tried to order both a Goldberg Bucker and
Sukoi and can't get either.
> They are "temporarily out of production". Does
anyone know what's going on?
>
> Mike
>

Sent via Deja.com http://www.deja.com/
Share what you know. Learn what you don't.

Sam

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Aug 25, 1999, 3:00:00 AM8/25/99
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I wonder what they are going to change? I have not built the Sukhoi myself,
but know others who have. I don't recall them having anything bad to say
about the plane. I hope CG doesn't wind up producing a model as bad as
their Staudacher.

Sam
<kentmi...@my-deja.com> wrote in message
news:7q1noj$ft7$1...@nnrp1.deja.com...

Sam

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Aug 25, 1999, 3:00:00 AM8/25/99
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Builds very heavy for wing area. See Model Airplane News review. They said
it was great, but their model weighed exactly the same as mine....9.5
pounds, which is about 2 pounds heavier than advertised. Probably a good
plane if you can get it to come in at 7 pounds. Need to beef up landing
gear block, at minimum. I had to build another wing with more area to tame
it some. There are better models. I really like Great Planes Extra 300, 40
size, but I think the 60 size is also good. Again, need to beef up landing
gear block.

Sam
<mike...@my-deja.com> wrote in message news:7q24lo$p8c$1...@nnrp1.deja.com...
> Whats wrong with the Staudacher? I was thinking of getting one.
>
>
> In article <37c35945.0@news>,

mike...@my-deja.com

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Aug 26, 1999, 3:00:00 AM8/26/99
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Jerry Festa

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Aug 26, 1999, 3:00:00 AM8/26/99
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On 25 Aug 1999 00:10:29 GMT, mneum...@aol.com (MNeume3675) wrote:

>Iv'e tried to order both a Goldberg Bucker and Sukoi and can't get either.
>They are "temporarily out of production". Does anyone know what's going on?
>
>Mike

DEFINEITELY NOT going out of business. Talked to Larry King the other
day and they have a bunch of goodies they are going to be releasing -
of course HE wouldn't fill me in on the details (darn), but said they
are very exciting. Doesn't sound like a company going south (hey,
that's where I live!)

Jerry
Black holes are where God divided by zero!

Ara Tidwell

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Aug 26, 1999, 3:00:00 AM8/26/99
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Considering that it has 850" area, 7 pounds would be practically a fun fly.
9.5 pounds for that area sounds... Errr, right on da ball. You have to
remember that this is no .60 size airplane, cryin for a YS120 or Saito 150
(lighter than YSs), or really a TT120!

--
---------------------------------------------------
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Sam <s...@cnetech.com> wrote in message news:37c39f6d.0@news...


> Builds very heavy for wing area. See Model Airplane News review. They
said
> it was great, but their model weighed exactly the same as mine....9.5
> pounds, which is about 2 pounds heavier than advertised. Probably a good
> plane if you can get it to come in at 7 pounds. Need to beef up landing
> gear block, at minimum. I had to build another wing with more area to
tame
> it some. There are better models. I really like Great Planes Extra 300,
40
> size, but I think the 60 size is also good. Again, need to beef up
landing
> gear block.
>
> Sam
> <mike...@my-deja.com> wrote in message
news:7q24lo$p8c$1...@nnrp1.deja.com...

> > Whats wrong with the Staudacher? I was thinking of getting one.
> >
> >
> > In article <37c35945.0@news>,
> > "Sam" <s...@cnetech.com> wrote:
> > > I wonder what they are going to change? I have not built the Sukhoi
> > myself,
> > > but know others who have. I don't recall them having anything bad to
> > say
> > > about the plane. I hope CG doesn't wind up producing a model as bad
> > as
> > > their Staudacher.
> > >
> > > Sam
> > > <kentmi...@my-deja.com> wrote in message
> > > news:7q1noj$ft7$1...@nnrp1.deja.com...
> > > > Went to my local hobby store Monday to but the CG
> > > > Sukhoi. Was told the same thing. Hold on
> > > > production for and enginering change. Model will
> > > > be available in about a month.
> > > >
> > > > In article <19990824201029.05305.00004086@ng-
> > > > fe1.aol.com>,

> > > > mneum...@aol.com (MNeume3675) wrote:
> > > > > Iv'e tried to order both a Goldberg Bucker and
> > > > Sukoi and can't get either.
> > > > > They are "temporarily out of production". Does
> > > > anyone know what's going on?
> > > > >
> > > > > Mike
> > > > >
> > > >
> > > >
> > > >

Brett Jaffee

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Aug 26, 1999, 3:00:00 AM8/26/99
to
The main complaint about the Sukhoi has been that the landing gear tears out
to easy.

In article <37c35945.0@news>, "Sam" <s...@cnetech.com> wrote:
>I wonder what they are going to change? I have not built the Sukhoi myself,
>but know others who have. I don't recall them having anything bad to say
>about the plane. I hope CG doesn't wind up producing a model as bad as
>their Staudacher.
>
>Sam
><kentmi...@my-deja.com> wrote in message
>news:7q1noj$ft7$1...@nnrp1.deja.com...
>> Went to my local hobby store Monday to but the CG
>> Sukhoi. Was told the same thing. Hold on
>> production for and enginering change. Model will
>> be available in about a month.
>>
>> In article <19990824201029.05305.00004086@ng-
>> fe1.aol.com>,
>> mneum...@aol.com (MNeume3675) wrote:
>> > Iv'e tried to order both a Goldberg Bucker and
>> Sukoi and can't get either.
>> > They are "temporarily out of production". Does
>> anyone know what's going on?
>> >
>> > Mike
>> >
>>
>>
>>
>> Sent via Deja.com http://www.deja.com/
>> Share what you know. Learn what you don't.
>
>

__________________________________________________________________________
Brett Jaffee

Brett's Slope and Power Home Page:
http://home.earthlink.net/~jaffee

The Unoffical Extra 300 Home Page:
http://www.bayarea.net/~nathan/extra300/

jaf...@earthlink.net

REMOVE THE "X" FROM MY EMAIL ADDRESS BEFORE REPLYING!
__________________________________________________________________________


Wayne Patton

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Aug 26, 1999, 3:00:00 AM8/26/99
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I am in the process of building one now. Saito 1.50 for the fron end. And
they claim nothing larger than a .90 2 stroke . . . ;-)

wayne

In article <#y5qkv47#GA.215@cpmsnbbsa03>, thund...@email.msn.com
says...

Sam

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Aug 26, 1999, 3:00:00 AM8/26/99
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Ara,

Where did you get the 850" wing area? Advertised is 690". I built a second
wing at about 850", but the original wing is a disaster waiting to happen.
Also, Goldberg advertises the plane for .45 to .61 two stroke and
specifically says not to overpower it. So, according to Goldberg, IT IS A
.60 size plane. I'd like to hear from someone who installed a .45 engine.
I imagine he is still taxiing around the paved runway or stalled it the
first attempt at takeoff. I put a ST .75 in mine and you still can't get a
decent knife-edge out of it.

Sam

Ara Tidwell <thund...@email.msn.com> wrote in message
news:#y5qkv47#GA.215@cpmsnbbsa03...

FLYSTID

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Aug 27, 1999, 3:00:00 AM8/27/99
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no...but when you find out please let me know...lets hope it aint so!!!!!!!

Flystid @ aol .com

Quickcurt!

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Oct 14, 1999, 3:00:00 AM10/14/99
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Man I wish Tower/Omni/not so great planes would all crash and burn and give
us back our hobby!!

Curt!!

Paul Nesbitt <paul.d....@boeing.com> wrote in message
news:3807246C...@boeing.com...
> Naa, they won't go out of business, they have to good of a product. But
> I expect they will have to do the Sig and Midwest thing and go back to
> Tower/Omni and grovel just to get them to sell their product again.
>
> paul

elnamo

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Oct 15, 1999, 3:00:00 AM10/15/99
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No longer selling through Great Planes or Horizon.
Selling now directly to local hobby stores.
New models coming.
Arfs coming.
Cowlings changing to fiberglass.
Lots extra.


Jim

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Oct 15, 1999, 3:00:00 AM10/15/99
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dealers getting screwed. not ordering CG anymore. CG WILL go out of
business.

elnamo wrote in message <3806bbea...@news.supernews.com>...

Paul Nesbitt

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Oct 15, 1999, 3:00:00 AM10/15/99
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Naa, they won't go out of business, they have to good of a product. But
I expect they will have to do the Sig and Midwest thing and go back to
Tower/Omni and grovel just to get them to sell their product again.

paul

Don Hatten

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Oct 15, 1999, 3:00:00 AM10/15/99
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Yep, I loved paying full retail. Dang, those were the good old days.

Quickcurt! wrote:

> Man I wish Tower/Omni/not so great planes would all crash and burn and give
> us back our hobby!!
>
> Curt!!
>

--
****************************
Don Hatten AMA SOARDOG
Galena, Alaska KE6TJG
USHGA 17442
http://www.freerepublic.com
****************************
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"They that can give up essential liberty to obtain a little temporary safety
deserve neither liberty nor safety." - Ben Franklin

Patricio W. Concha Erilkin

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Oct 15, 1999, 3:00:00 AM10/15/99
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my oppinnon, here in chile ... is that TOWERHOBBIE/GREATPLANES/HOBBYCO/OMNI
group is a BIG good thing to the hobby since you have access to a very
complete list of items, good prices, excelent support .... imagine what
would happened with the PC system without the push of Bill Gates ... :)

just my $ 535 (US$ 1)

--
Atentamente ...

Pato Concha Jr.
Casilla 3381
Concepción
CHILE (SouthAmerica)

Bill (Mr.AV) Skoros

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Oct 17, 1999, 3:00:00 AM10/17/99
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Just what is a "Small local dealer"???

NOT your local hobby store!! They will still be able to get all CG kits.

Just the likes of Tower Hobbies wont carry them (they CAN still order them if
they wanted too, but will no longer be able to offer lower the local store
prices anymore!) So they choose not to. How do I know? Its PRINTED in there
2000 catalogue!

Bill


Jim wrote:

> Carl Goldberg was a personal friend of mine. It's a shame what's happening
> to his wonderful
> company. Carl would be absolutely appalled. He believed in the small local
> dealer and always
> supported them to the utmost. The current management of CG doesn't have a
> clue.
>
> George Hostler wrote in message ...
> >I remember CG when old man Goldberg was still alive. I lost interest a
> >while back, when they discontinued kits I liked as favorites, after his
> >death. (Nothing wrong with the newer stuff and revised stuff, just not my
> >interest.)
> >
> >Sounds like the new management is making some moves too quickly, instead of
> >feeling out the market and taking the least intrusive way. Your's is not
> >the only message I've seen the same comment on.
> >
> >George
> >
> >Jim wrote in message ...
> >:CG is SCREWING the dealers. I had three dealers tell me in the past week
> >:that I would no longer see any CG products in their stores! That tell you
> >:something? Maybe CG isn't out of business yet, but it will be if they
> don't
> >:wake up! Dealers that do stay with them will not be able to discount the
> >:kits
> >:to you like they used to...translated...price of CG going up.
> >
> >
> >

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Cain Fly

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Oct 18, 1999, 3:00:00 AM10/18/99
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>NOT your local hobby store!! They will still be able to get all CG kits.
>
>Just the likes of Tower Hobbies wont carry them (they CAN still order them if
>they wanted too, but will no longer be able to offer lower the local store
>prices anymore!) So they choose not to. How do I know? Its PRINTED in there
>2000 catalogue!
>
>Bill
>
Hope you are more right than me. I tend to be a bit cynical. The majority of
Hobby Dealers that I have met in the past 25 years, since Great Planes, do not
take the time to do DIRECT ordering. They take the easy way and that is to just
order from GP and now Horizon.
Like the stores in the Malls, they all carry the same items, (but unlike the
Mall stores, the H/Shops don't have their own label in the same type items) and
those items are advertised in the magazines by the big distributors to get your
attention.
All the slow-moving specialty items must be ordered / obtained by the modeler
himself. Those kits, parts, etc. that must come direct are few and far between
on H/S shelves.
In addition, GP has the resources to order all the production of some smaller
mfger. tie up the product from the other vendors, and sell that product at a
loss to persuade the mfger. to again join the fold.
If GP wants CG, they can get it. Don't expect your local dealer to be CG's
saviour.
HC/TX


Paul Nesbitt

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Oct 18, 1999, 3:00:00 AM10/18/99
to
Sorry if this question is answered elsewhere in this thread, but I have
heard a couple times now that CG is screwing the dealers. How is that?
The way I see it, since Tower and Omni won't be distributing the planes,
the dealers will have little competition. So even if CG charges them
more money for the kits, they have a captive market. Please let me know
what I am missing.

Paul

Jim wrote:
>
> CG is SCREWING the dealers. I had three dealers tell me in the past week
> that I would no longer see any CG products in their stores! That tell you
> something? Maybe CG isn't out of business yet, but it will be if they don't
> wake up! Dealers that do stay with them will not be able to discount the
> kits
> to you like they used to...translated...price of CG going up.
>

> Martin X. Moleski, SJ wrote in message <38088385...@canisius.edu>...
> >1. CG changed distribution methods. Some predict it will be
> > good for customers, some predict otherwise. Time
> > will tell.
> >
> >2. We should change subject lines when answering them. It's
> > not fair to CG to keep a rumor alive in the subject
> > line when, in fact, we know it is not true.
> >
> >3. There are lots of CG kits that I would like to buy, build,
> > and fly. I hope they stay in business and prosper
> > until I've had a chance to work my way through their
> > product line. (Yes, I'm selfish. You're not?)
> >
> >4. CG doesn't remunerate me in any way for supporting them
> > on the ng. Drat.
> >
> >5. If anybody does want to buy my loyalty, it's for sale.
> > The price is low and well within your means. :-O
> >
> > Marty

Bill Archibald

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Oct 18, 1999, 3:00:00 AM10/18/99
to
Paul,

First I am no marketing brainiac or retail wiz kid. The only experience
I've had is two years managing a small paint/wallpaper store ten years
ago.

My hobby shop owner is complaining that 1) there will be no volume
discounts, 2) he has to pay shipping (GP pays this at some level of
purchases), 3) one more supplier to order from, 4) he doesn't believe CG
has the distribution network in place to be efficient.

He is convinced he will see less profit for more hassles.

I do know from my limited experience that these concerns are valid.
Especially shipping costs. Let's say he needs a couple of spinners, and a
few other odds and ends. Before w/ GP distributing CG products, these
items could be thrown in the larger weekly (or bi-weekly) order. Now, to
defray shipping and handling costs, these items have to wait. It seems
small potatoes, but ever faced the wrath of a customer when you don't have
in stock some "simple stuff like that"?

Last winter three of us bought CG Extra 300's at one time. Because it was
a single transaction, the hobby shop owner got the best deal from GP , we
paid for the items (cash) as soon as the kits came in (three days later),
and thus we got a decent deal that was good for all. I fear this would not
happen under the present distribution plan.

On the other hand, I am hopeful that for single large ticket items, the
end user will see some savings.Just don't count on your local hobby shop
to be well stocked in Ultracote, Jet Adhesives, CG spinners, and little
items that are duplicated by other manufactures that distribute through
the big guys.

I remain cautiously optimistic.


On Mon, 18 Oct 1999 12:47:45 GMT, Paul Nesbitt <paul.d....@boeing.com>
wrote:

(valid e-address: user name = warch,
ISP = ultranet, end with .com )

Dan D

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Oct 18, 1999, 3:00:00 AM10/18/99
to
Maybe Goldberg will is planning to be a great new distributer? I'll
bet that the mom and pop joints can't get any bulk buying discounts
out of Great Planes either!
--

Dan D
Kalamazoo, Michigan, USA

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Cain Fly <cai...@aol.com> wrote in message
news:19991017222530...@ng-fn1.aol.com...
: >NOT your local hobby store!! They will still be able to get all CG

:


Martin X. Moleski, SJ

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Oct 18, 1999, 3:00:00 AM10/18/99
to
Dan D wrote:

> Maybe Goldberg will is planning to be a great new distributer? I'll
> bet that the mom and pop joints can't get any bulk buying discounts
> out of Great Planes either!

1. To get bulk discounts, you have to buy in bulk. :o)

2. Our local Pop store (Dad is Doug, son #1 is Jason, son #2 is not
Jason) got us a pretty good deal on fuel through GP this
spring. Low hassle, low prices, because he was willing to
eat his share of the profits. Good guy, good buy.

Marty

mike...@my-deja.com

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Oct 19, 1999, 3:00:00 AM10/19/99
to
Well I will buy direct from GC, check out the web site. Street prices
free shipping on orders over $85.00.

In article <LyYLOMVbl1j5yB...@4ax.com>,

Sent via Deja.com http://www.deja.com/

Before you buy.

Jim

unread,
Oct 19, 1999, 3:00:00 AM10/19/99
to
You are missing the point entirely. The dealer can no longer make a
reasonable profit on CG products. CG products charges them more for
shipping, does not give them good credit terms, and takes longer to fill
their orders. Nuff? If I were a dealer, I'd drop em like a hot tater.

Paul Nesbitt wrote in message <380B16F1...@boeing.com>...

Paul Nesbitt

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Oct 19, 1999, 3:00:00 AM10/19/99
to
Hey Jim, the reasonable profit thing is what I am trying to understand.
Even if CG charges the dealers $200 per kit and $10 shipping and C.O.D.,
and they have to charge the customer $300 per kit to make a reasonable
profit, we (the customer) still have no where else to go to get the
kit. If I want a CG kit, I have to pay the fair market price which may
be $300 or whatever. I would think that the dealers would have a
tougher time making their margin on kits that we can get mail order than
they would on kits with no other outlet than the hobby shops?

Again, my background is not deep in marketing so bear with me.

Paul

Sales Department

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Oct 19, 1999, 3:00:00 AM10/19/99
to
Dear Bill et. al.

I've sat back and lurked around this newsgroup watching the rumor (mostly false)
mill at it's best. By now, there so many rumors out there that are unsubstantiated
and down right not true that I thought it's the right time to interject some
truth.

Bill, in your latest message you wrote:

"My hobby shop owner is complaining that 1) there will be no volume
discounts, 2) he has to pay shipping (GP pays this at some level of
purchases), 3) one more supplier to order from, 4) he doesn't believe CG
has the distribution network in place to be efficient."

OK, let's tackle those one at a time.
1) There never was a volume discount program on our kits from our major
distributors. Both of them (Horizon and GP) sold our kits to retailers at a net
price that was the same for all retailers. If your dealer has a "special inside
deal" that's not printed, that's pretty interesting. It has been my experience
that if such a "deal" exists, it's not very well known. Perhaps your dealer can
enlighten us?

2) While it is true that the retailer is currently taking on part of the freight
burden, we are expecting to modify this once the entire program is operational.
From the invoices I've seen cut to retailers from here, the freight charges that
they are incurring are currently running between 1-2%, perhaps a little higher to
the west coast. Freight is a common cost of doing business for every company.
Different companies use various means to pay these costs. Some charge more for the
product, others charge freight. It becomes an exercise in accounting.

3. True. Guilty as charged. But ask yourself if you would be better off with only
one place to buy merchandise.

4. Not guilty. While I'm not sure what you mean by distribution network, I will
assume that you mean the intrastructure in place to handle the stepped up volume
of orders we are now receiving. Right now, all dealer orders leave our plant
within 24 hours. That's the same standard as many of the larger wholesalers in the
country, and better than some others. If he means we don't have the retailer base
established, we currently have over 300 retailers signed up across the country,
including about a dozen mail order retailers. While the 300 plus dealer base is a
good start, we are continuing to reach and set up retailers every day.

Back to your message again. I believe you missed one point of this program. Not
all CGM products are Dealer Direct, only the kit products. If your dealer needs a
couple of spinners and a few other odds and ends, he can still get them from his
normal wholesale distributors. That means that UltraCote, Jet Adhesives, Klett and
CGM accessories are no less available than they every were. You CAN count on your
local dealer to be in stock. On all of our products.

Bill, I appreciate your comments and candor. I wanted to respond directly to you,
but I guess you don't want to enter into a private dialogue with a return address
of "nos...@myISP.com". If he's really convinced that this program means less
profits for more hassles, I would like to have the opportunity to speak with your
retailer as he may be somewhat confused by our program. You may e-mail me directly
at c...@goldbergmodels.com if you wish to keep your source confidential or post it
here. By the way, that offer goes out to anyone that has a favorite hobby retailer
that is not aware of our program. You too Jim. Let me know who those three
retailers are. I'd love to talk with them.

As for pricing, compeition still rules the world. As mentioned earlier, we have
many mail order hobby shops that are signed up for our program. Dealers will still
have to compete with them just like always. In turn, we have to compete with other
manufacturers' similar products. Life has not changed. Life goes on.

OK, I'm down off my soap box. I trust that I've answered some of the questions,
and dispelled some of the rumors. The newsgroup is a great place to get
information, both good and bad, right and wrong. Most of you know that I lurk
about here, and only jump in when some really detrimental info is dispersed. I
think it's great when modelers can get together to help each other. Our e-mail
line is always open and receptive to your thoughts, questions and comments.

Best regards,
Larry King
Carl Goldberg Models


Bill Archibald wrote:

Paul Nesbitt

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Oct 19, 1999, 3:00:00 AM10/19/99
to
The truth finally comes out. Thanks Larry.

Bill Archibald

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Oct 19, 1999, 3:00:00 AM10/19/99
to

Larry,

I REALLY appreciate it when a mfg rep puts us straight. Please jump in
more often so these rumors and threads don't start having a life of their
own. You can see what we think of AnnMarie, you can also achieve her
honored status <respectful grin>. And that's not to say we will not
disagree with CGM, but at least we will have more facts to deal with.

I will use your information next time I discuss your new marketing
approach with my hobby shop owner. Right now I choose not to I.D. him as I
think that should be his choice.

As for as myself wanting to be reached by email, my e-address is protected
only to thwart spammers...as many here have learned is necessary. My real
e-address is disguised in my sig file. As it states, my user name is warch
my ISP is ultranet and it is a commercial domain (ie, DOT
com).Unfortunately the sig file appears at the WAY END of the post, so you
probably missed it, or was confused that it was mine, sorry. PLEASE feel
free at any time to write me here on any personal matters. I am sure you
and CGM are honorable enough not to spam anyone. You may also contact me
thru my email.com account. User name there is warchibald (I know, I am SO
original <g>)

But, I think answering the thread here, in this forum, is the most
appropriate.

Again I thank you for your input. As I've stated before, I have been
flying Goldberg models since my first Li'l Satan back in '62 (give or
take). I love my Extra and will continue my support as long as my hobby
shop owner deems it profitable to carry CGM products.

again, much thanks and admiration

-bill

Jakelamp

unread,
Oct 19, 1999, 3:00:00 AM10/19/99
to
Great to hear from you Larry! I think you guys are doing a fine job. I will
keep buying as long as you continue to build quality kits.

mike...@my-deja.com

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
You can get it at street prices direct from CG, free shipping on orders
over $85.

In article <380C6B47...@boeing.com>,


Paul Nesbitt <paul.d....@boeing.com> wrote:
> Hey Jim, the reasonable profit thing is what I am trying to
understand.
> Even if CG charges the dealers $200 per kit and $10 shipping and
C.O.D.,
> and they have to charge the customer $300 per kit to make a reasonable
> profit, we (the customer) still have no where else to go to get the
> kit. If I want a CG kit, I have to pay the fair market price which
may
> be $300 or whatever. I would think that the dealers would have a
> tougher time making their margin on kits that we can get mail order
than
> they would on kits with no other outlet than the hobby shops?
>
> Again, my background is not deep in marketing so bear with me.
>
> Paul
>
> Jim wrote:
> >
> > You are missing the point entirely. The dealer can no longer make a
> > reasonable profit on CG products. CG products charges them more for
> > shipping, does not give them good credit terms, and takes longer to
fill
> > their orders. Nuff? If I were a dealer, I'd drop em like a hot
tater.
> >
> > Paul Nesbitt wrote in message <380B16F1...@boeing.com>...

mike...@my-deja.com

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
I do not understand something. How can it not be profitable for your
dealer? He controls the mark up and thus could special order a kit if
you agree to his price. If you think the price is to high go elsewhere,
just like any other purchase. I wanted my local hobby shop to special
order me an ACE charger, would have paid a premium. Got much the same
story that you got from your dealer on CG. So I ordered it at a discount
from Hobby Barn, a regular hobby store in Arizona that advertises
nationaly, at a discount and received it in 4 days. Right now one may
not be able to determine who is or isn't going to sell CG but I do know
that you can order direct from their web site at good prices and no
shipping.

In article <F6wMOJ1HdQCkSY...@4ax.com>,

Jim

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
Paul,
There is some logic in what you are saying However, there is a 'perceived'
retail price. If CG isn't giving the dealers as good a discount as GP was,
AND they have to pay shipping which they rarely did with GP, Then obviously
they will lose because they still cannot exceed the
retail price. If they do, there are those in this newsgroup..and...this
hobby for that matter, that will blast them all over the internet for being
crooks, charging too much, ripping them off, etc. The dealers will simply
avoid the hassles by not stocking CG products anymore. Plain and simple. Tis
life.
Jim
Paul Nesbitt wrote in message <380C6B47...@boeing.com>...

>Hey Jim, the reasonable profit thing is what I am trying to understand.
>Even if CG charges the dealers $200 per kit and $10 shipping and C.O.D.,
>and they have to charge the customer $300 per kit to make a reasonable
>profit, we (the customer) still have no where else to go to get the
>kit. If I want a CG kit, I have to pay the fair market price which may
>be $300 or whatever. I would think that the dealers would have a
>tougher time making their margin on kits that we can get mail order than
>they would on kits with no other outlet than the hobby shops?
>
>Again, my background is not deep in marketing so bear with me.
>
>Paul
>
>
>Jim wrote:
>>
>> You are missing the point entirely. The dealer can no longer make a
>> reasonable profit on CG products. CG products charges them more for
>> shipping, does not give them good credit terms, and takes longer to fill
>> their orders. Nuff? If I were a dealer, I'd drop em like a hot tater.
>>
>> Paul Nesbitt wrote in message <380B16F1...@boeing.com>...

Jim

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
Aha, there's another reason for the dealers to not stock their products. CG
isn't even going to honor the dealer channel.

mike...@my-deja.com wrote in message <7uj3om$77b$1...@nnrp1.deja.com>...


>You can get it at street prices direct from CG, free shipping on orders
>over $85.
>
>In article <380C6B47...@boeing.com>,
> Paul Nesbitt <paul.d....@boeing.com> wrote:

Jim

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
Larry,
Excellent message! Thanks for your response. I will ask the three dealers if
they mind
me passing along their names to you. I was in one store while one of the
dealers was on
the phone to CG. He wasn't getting the answers he liked! He said to your
employee repeatedly
that the terms were not as good as when he ordered from CG, delivery was too
long, and he resented
paying shipping which he never did with GP because he combined lots of
products in his order. This is
a very nice dealer and he was very diplomatic with your employee. He finally
ended the conversation by
saying that until CG 'gets it', he won't be buying any of your kits. I used
to be a small kit manufacturer in the
70's. I always sold direct to dealers because there wasn't that great a
distribution market at that time and I couldn't
deliver the volume required. I Always Listened to my Dealers! If I had to
eat 1-2% to move my product, it was a good
investment.

Jim

Sales Department wrote in message <380C83DC...@goldbergmodels.com>...

Jerry Festa

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
On Tue, 19 Oct 1999 09:44:45 -0500, Sales Department
<c...@goldbergmodels.com> wrote:

>Dear Bill et. al.
>
>I've sat back and lurked around this newsgroup watching the rumor (mostly false)
>mill at it's best. By now, there so many rumors out there that are unsubstantiated
>and down right not true that I thought it's the right time to interject some
>truth.
>

<snip of some great reading material!)

Larry I'm so glad you have taken the time to set the record straight.
I'm pull'n for you guys to stay the course as Carl would have wanted.

On to another subject....when you gonna be on RCOnline (chat)? :-)

Jerry
Black holes are where God divided by zero!

Paul Nesbitt

unread,
Oct 20, 1999, 3:00:00 AM10/20/99
to
Good point.

Jim wrote:
>
> Paul,
> There is some logic in what you are saying However, there is a 'perceived'
> retail price. If CG isn't giving the dealers as good a discount as GP was,
> AND they have to pay shipping which they rarely did with GP, Then obviously
> they will lose because they still cannot exceed the
> retail price. If they do, there are those in this newsgroup..and...this
> hobby for that matter, that will blast them all over the internet for being
> crooks, charging too much, ripping them off, etc. The dealers will simply
> avoid the hassles by not stocking CG products anymore. Plain and simple. Tis
> life.
> Jim

> Paul Nesbitt wrote in message <380C6B47...@boeing.com>...


> >Hey Jim, the reasonable profit thing is what I am trying to understand.
> >Even if CG charges the dealers $200 per kit and $10 shipping and C.O.D.,
> >and they have to charge the customer $300 per kit to make a reasonable
> >profit, we (the customer) still have no where else to go to get the
> >kit. If I want a CG kit, I have to pay the fair market price which may
> >be $300 or whatever. I would think that the dealers would have a
> >tougher time making their margin on kits that we can get mail order than
> >they would on kits with no other outlet than the hobby shops?
> >
> >Again, my background is not deep in marketing so bear with me.
> >
> >Paul
> >
> >
> >Jim wrote:
> >>
> >> You are missing the point entirely. The dealer can no longer make a
> >> reasonable profit on CG products. CG products charges them more for
> >> shipping, does not give them good credit terms, and takes longer to fill
> >> their orders. Nuff? If I were a dealer, I'd drop em like a hot tater.
> >>
> >> Paul Nesbitt wrote in message <380B16F1...@boeing.com>...

N5bbc

unread,
Oct 21, 1999, 3:00:00 AM10/21/99
to
Larry, now that you've cleared the air about the distribution,would you try to
impress on the production department the need to improve on the quality and
selection of the balsa in your kits as well as sharpen your/their dies.
Thanks E Texas Ed


Quickcurt!

unread,
Nov 2, 1999, 3:00:00 AM11/2/99
to
This is an accurate description of my "Issues" with Great Planes and others.
(not the people who are just employees)

After the local hobby shop folds or as is the case of another local shop,
they quit stocking RC items due to the low profit margin.

As soon as the market outlets are reduced and we can only buy a particular
product line through one of these mail-order houses just watch the prices
climb.

Sure mail-order is a cost effective way to shop but I still love going into
a well stocked hobby shop and looking around. And since this is just a hobby
and not a necessity, impulse buying fits. I spot an item everytime I go out
that I didn't know I needed or wanted. And usually end up buying it. That's
part of the fun for me.

And having fun is what RCing is all about.


--
Curt!
Retired @ 49 yrs old


DeSpamerizer:
admin@loopback $LOGIN@localhost $LOGNAME@localhost $USER@localhost
$USER@$HOST -h1024@localhost ro...@mailloop.com


AEROSCALE <aero...@aol.com> wrote in message
news:19991102223215...@ng-fs1.aol.com...
> I guess I must be missing something also. It seems that these dealers who
are
> complaining may not have the business acumen to remain in business anyway.
It's
> always easier to complain than do something about it. What I don't
understand
> is how these same dealers buy from Great Planes Distributors ( a Hobbico
> entity) and then can only make the sale if they match the Tower (another
> Hobbico entity) price the "customer" waves in front of them. Their margin
is
> reduced to almost nothing whan the product leaves their shop but they've
"made
> the sale". See how long that enlightened philosophy will allow them to
survive.
>SNIP


AEROSCALE

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
I guess I must be missing something also. It seems that these dealers who are
complaining may not have the business acumen to remain in business anyway. It's
always easier to complain than do something about it. What I don't understand
is how these same dealers buy from Great Planes Distributors ( a Hobbico
entity) and then can only make the sale if they match the Tower (another
Hobbico entity) price the "customer" waves in front of them. Their margin is
reduced to almost nothing whan the product leaves their shop but they've "made
the sale". See how long that enlightened philosophy will allow them to survive.
Seems to me that CGM, by going dealer-direct, frees the product from the
imposed pricing created by Hobbico and provides the dealer an opportunity to
make a reasonable profit on the item. If nothing else, it removes the item from
the Tower catalog so the "customer" can't try to drive the price down.
Just another point to consider.....if YOU were Tower and all the local dealers
eventually dried up, what do you think you'd do to YOUR price structure? Think
you'd continue to deep discount? Why? Tower had enabled a lot of modelers to
get involved and one must recognize their business strategies....and therein
lies the difference, they are bottom line, business driven, as they should be.
They are not a bunch of emotional modelers who complain that their dealers
"charge way more than Tower", or dealers who complain more than sell. Hmmmm.
let's see, on this item I can make 10% and on this one 30%, which one am I
better off with? If someone can tell me why a dealer says he "won't ever stock
Goldberg kits again", I'd sure like to know. Like I said, maybe I'm also
missing something.

Jerry Festa

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
Very well said Aeroscale....now WHEN are you going to produce a
magazine? :-)

Jerry

What do little burdies see when they get knocked unconscious?

Jerry Festa

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
Guess CGM release a very nice large biplane ARF at the Chicago
show....anyone see it? What was it?

Jerry

CrossCustm

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
I saw it Jerry, looked nice. Its the ultimate bipe in the box scheme with
aluminum gear mounted on the fuse, fiberglass cowl I THINK, not positive.

Sincerely,
Mrs. AnnMarie Cross
Product Support Manager
Great Planes Model Distributors
product...@greatplanes.com
www.greatplanes.com


Jim

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
GP gave the dealers a better discount than CGM is giving them! AND better
shipping allowance, AND faster shipping, etc., etc.,

AEROSCALE wrote in message <19991102223215...@ng-fs1.aol.com>...

PAULS MOD

unread,
Nov 3, 1999, 3:00:00 AM11/3/99
to
>Jim" sa...@idca.com wrote

>GP gave the dealers a better discount than CGM is giving them! AND better
>shipping allowance, AND faster shipping, etc., etc.,

And no profit margin against Tower sale prices. When Tower can't buy for less
than anyone else they aren't interested the product.
Mr. Motor

Jerry Festa

unread,
Nov 4, 1999, 3:00:00 AM11/4/99
to

Thanks for the update....you mean you actually LOOK at other company's
products? <g>

K-Man

unread,
Nov 4, 1999, 3:00:00 AM11/4/99
to
Quickcurt! wrote in message <7voh99$f79$1...@holly.prod.itd.earthlink.net>...
<snip>

>Sure mail-order is a cost effective way to shop but I still love going into
>a well stocked hobby shop and looking around. And since this is just a
hobby
>and not a necessity, impulse buying fits. I spot an item everytime I go out
>that I didn't know I needed or wanted. And usually end up buying it. That's
>part of the fun for me.
<snip>

Well, that just 'bout sums it up for me. I totally agree.

--
Kirk Kreml
Huntington Beach, CA.
USA

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