Align sales ...

[papa.alpha]

As I read through all the Trex 500 threads there is a lot of conjecture on the profitability of a 500 vs a 700 and how it all fits in with the 450 and 600E & N. Question: does anyone have any hard (or soft) numbers regarding unit sales of all the Align products and even more intriguing their profit margins on the many models? And then there is the whole parts issue. Are they short selling the kits to sell parts?

I would guess this isn't shared info, but it would sure be interesting.

It seems they have reached a critical mass. Good design, great distribution and reasonable pricing seems to work. It seems anything they come out with will sell like crazy. They just need to play there cards right to maximize profits. It is a great mini-success story.

Can you imagine coming up with a product that is inherently unstable and crash prone, like all helicopters are, selling it on the scale that Align has and then reaping the profits from owners who can't wait to buy parts. I bet the automakers in Detroit wish they had come up with this!

That said, I'll buy the first 500 off the assembly line and a bucket of parts to fix it after I wreck it.

p-a

[Finless]

Only thing I can add is I "heard" back in January of 2007 that Align had shipped a million 450's. Obviously this includes all versions that ever existed.

Bob

[beeflyer2]

From Kyna's post on RR...

The T-REX 500 is one of our most exciting projects yet! Although the 450 has had huge success, over 300,000 sold world wide; we anticipate this machine to surpass those numbers. It really is the perfect size, large enough to be easy to see and very stable, but still small enough to have affordable battery packs and fly in your backyard or local park.

[kgfly]

I am sure they are making a decent profit on the kits but without doubt, the parts are the major profit stream for all the heli Mfr, at least those that sell significant volumes of helis.

Oh, and of course the auto mfrs are onto the same game, try pricing your car from spare parts! Sure, they no longer make them to crash or fall apart, but their profits (if any) are in the parts too.

[fireup]

Originally Posted by kgfly

I am sure they are making a decent profit on the kits but without doubt, the parts are the major profit stream for all the heli Mfr, at least those that sell significant volumes of helis.

Oh, and of course the auto mfrs are onto the same game, try pricing your car from spare parts! Sure, they no longer make them to crash or fall apart, but their profits (if any) are in the parts too.

Cars? how about low price printer mfg. and video game system? They loose money when they sell the unit and make money on the ink cartridge and games.

[kgfly]

Originally Posted by fireup

Cars? how about low price printer mfg. and video game system? The lose money when they sell the unit and make money on the ink cartridge and games.

Absolutely. The way to get rich is to develop a gadget that people will want that has a high turnover of consumables. Give away the gadget (or not, depends on the market) and make LOTS on the consumables. There are many examples:

- printers
- game consoles
- razors
- electric toothbrushes
- cell phones
- r/c helis and cars (more so than boats or planes)
...etc...

[Eury]

I don't know the margins on everything, but 600 Nitro Pro kits cost dealers just a hair under $450. I would imagine the rest of their stuff is the same, so basically, they are making a killing.

[raylepper]

I never bother thinking about the profitability of someone else's business unless I'm planning on investing in it. I decide if I like the price of what I'm getting. Having run a lot of businesses and been responsible for the bottom line, I can tell you it's a lot harder to be profitable than the customers think. I think Align's prices are just fine. And I hope the people selling me the kits and bits are making enough money to stay in business so I can have such easy access to food for my heli-ddiction.

And I can't wait to give them MORE of my dough for a new 500. Yum yum.

[lowflyer101]

servos /elctric company sure very happy now . whatever kind of business, you needs build customer first and made them come back for more. Align doing very well with this. i got the rex500 on my xmas wish list

[papa.alpha]

Has anyone taken the time to price out a 450 based on parts? Now that would be scary.

[Steel Butcher]

Originally Posted by papa.alpha

Has anyone taken the time to price out a 450 based on parts? Now that would be scary.

No, but I've bought a couple that way

[Pinecone]

Try pricing ANYTHING by parts, like a car.

[Efliernz]

The factory just can't keep up.

The local New Zealand importer while being a "little fish" regularly orders 24 kits minimum and rarely gets more than 1/2 supplied.
I'm hoping that the factory is equiped to deal with the T500 orders. I agree with others that the 500 is a nice size - and I can't wait. My new 600 is great but is just too big to aero in the park over the back fence/take away for the weekend. The 450 is too "skitish" (and currently has a camera on its nose). The 500 will be good.