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JK Products major update


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#1 JK Products

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Posted 22 August 2017 - 11:25 AM

JK Products® is committed to the future of the slot car industry and we will do everything possible to help the raceways and racers that define it. The first major steps in this goal are being taken now.

 

1. JK Products will no longer sell to US distributors. We believe distributors are seriously harming the industry, US raceways in particular. Please click here to see the presentation.

 

a. The distributors are selling to many people they should not, taking those sales and profits directly from raceways. Now those JK sales and profits will go to raceways!

 

b. They increase delivery times and increase shipping costs because distributors do not stock most of our products. A racer orders from his raceway, the raceway then orders from the distributor (delay), and the distributor orders from us (delay). We then ship to the distributor (delay + shipping), who receives it, repackages it, and ships it out to the raceway (delay + shipping). Finally, the raceway gets the product and notifies the racer his order is in. This is a slow, costly and inefficient process.

 

c. The distributors act as a barrier between JK Products and our real customers; raceways and racers. We want to dramatically improve communications and relationships with raceways and racers to better support both parties, as well as to increase customer service, product feedback, new product ideas, etc.

 

d. The raceways will enjoy higher discounts purchasing directly than they received from the distributors. This means more money in the pockets of raceways. Furthermore, we have reduced the prices on hundreds of products, benefiting both the raceways and racers.

 

2. We have created a new website at jkproducts.com. This new website not only features an easy to use design with high quality photography, but will include much more valuable product information. It also will bring some unique capabilities as described later in this document.

 

3. While we wouldn’t prefer to do so in an ideal world, we will sell direct to racers for a number of reasons, but only with a special condition:

a. It is not possible for raceways to stock our full product line, to have an informative and up-to-date website including all our products, and to be fully knowledgeable regarding all our products.

            b. Some racers might be located far from their raceway, not like their nearest raceway, etc.

 

When we sell directly to racers (at full retail price of course) we will pay their designated raceway a 15% commission:

 

Any US racer who buys from us will have to register on our website. When they register, they have to select a US raceway. This raceway will receive a 15% commission on product sales automatically; we will handle the entire process and ship directly.

 

The raceway the racer has chosen will be kept confidential and the raceways won’t know which racers have selected them. Every time a racer places an order, their raceway will get an email saying they earned a commission. Again, it will not have the racers name attached, but this makes the purchasing process transparent while protecting the racer’s choice.

 

Next Steps:

 

Raceways:

Please register as soon as possible. If you do not register, racers cannot select you as their raceway and you won’t get any commissions.

How do we define a raceway?

#1. a dedicated space (not your house or garage)

#2 open to the public

#3. regular hours

#4 an active slot car program (you can’t just own a track to do online sales)

 

Once we have approved your registration as a raceway, you will be listed in “registered raceways” at the bottom of our homepage and you will start receiving commissions. Whenever one of your racers places an order with us, you will immediately receive an anonymous email showing the commission you earned.

 

Shipping is free with just a minimum $15 order. We want you to be able to get products to your racers as quickly as possible.

 

Clubs:

Please register for your club discount. Once we have approved your registration as a club, you will be listed in “registered clubs” on the bottom of our homepage.

 

Racers:

Please order from raceways whenever possible. Please do not purchase from non-raceways. The future of the industry depends upon this.

Please do not register for a few days until raceways have had a chance to register first.

Shipping will be free with a $75 order.

If you want to change your designated raceway, please email us with the change. Again, this is confidential. When you place an order, we show you the commission we will be crediting to your chosen raceway.

 

JK Products:

Once we get these changes all ironed out and any improvements we find, we will be focusing on more fair and fun racing, new products, and getting more racers into raceways!


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Tim Homola
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#2 JK Products

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Posted 22 August 2017 - 11:33 AM

To make sure everyone sees this presentation (linked to in post 1), let me post it here in the clear.

ss1.jpg

ss2.jpg

ss3.jpg

ss4.jpg

ss5.jpg

ss6.jpg


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#3 Phil Hackett

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Posted 22 August 2017 - 11:47 AM

Interesting.


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#4 Half Fast

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Posted 22 August 2017 - 12:24 PM

It is clear that Tim has given this approach considerable thought. It also good that clubs are included in the plan as this may be the future of the hobby.

 

This will shake things up for sure. It will be interesting to see how this plays out.

 

Cheers,


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#5 RodneyZ

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Posted 22 August 2017 - 12:53 PM

More companies, from insurance to trucking, anything with middle men for nothing involved should start operating the same way. Would save a lot of money for everybody.
 


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#6 CoastalAngler1

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Posted 22 August 2017 - 12:58 PM

Whoever makes the best quality parts that are fast will receive my hard-earned racer dollar.  
 
It is 2017. If the raceway does not have it and another is out there, I will find it before my next testing session.
 
I always spend plenty when I visit slot car tracks... would spend more if they could fill my shopping list.
 
If raceways don't stock it, how are folks supposed to buy from them?
 
BTW USA Today reports on Sears, Kmart, Macy's, JC Penney, HH Gregg, Gander Mountain - all closing stores in 2017...


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#7 Don Weaver

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Posted 22 August 2017 - 01:14 PM

All the nearby raceways have closed and the nearest one is 125 miles away and I've never been there and it's doubtful I ever will.

 

Do I register as a racer and choose any raceway I want to support?

 

Don


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#8 Racer36

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Posted 22 August 2017 - 01:18 PM

I certainly respect that Tim is wanting to fix what he perceives to be a broken business model, but when I look at the list of registered raceways (3), one of them is defunct. Probably a small oversight, but the optics are not good.


Dennis Dominey

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#9 Half Fast

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Posted 22 August 2017 - 01:25 PM

 A valid point, considering how many raceway owners are barely computer literate this may cause considerable difficulty and lost revenue.
 
Cheers.

Bill Botjer

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#10 MSwiss

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Posted 22 August 2017 - 01:26 PM

Dennis,
 
If you are talking about Rt. 66, are you talking about the same one?
 
This one in Illinois appears to be open:
 
Rt. 66 Raceway


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#11 JK Products

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Posted 22 August 2017 - 01:32 PM

Hi Don,

 

You can pick whatever raceway you wish, and that choice will remain private.

 

Dennis, the whole reason to list "registered raceways" is to make it public and be corrected if I've made a mistake. Which raceway should not be listed as a raceway?


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#12 Racer36

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Posted 22 August 2017 - 01:34 PM

I am referring to Route 66. I assumed, perhaps in error, that it is the one in New Bethlehem, PA. My apologies if it is another raceway.


Dennis Dominey

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#13 Matt Sheldon

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Posted 22 August 2017 - 01:43 PM

The industry just may have died enough finally to start to extinguish the need for a distributor where commercial 1/24 slot car is concerned. However with or without a distributor with relevance to the flow chart, there is a flawed mentality within them. Raceways being "crushed" by distributors is excessive for sure. While I will not argue that the rules are not being broken, the consumers are the larger issue without a doubt. But are they truly to blame?

 

I find it funny when PCH and Professor Motor are listed negatively as both sell to raceways as well. Scott also is an advertiser here on the blog! Not sure about currently, but both also had active tracks as well at one point or another. I bet Scott has come to the rescue more times than not by putting parts in a racers hands before a race so that racer can participate at their local raceway than not. You cannot hang the noose around a reseller's neck for taking an opportunity due to some tracks shortcomings.

 

So if I don't have a local raceway I can just name random registered raceways and kick the 15% to them? Do they receive their 15% via cash from JK or in consumable credit? Surely this business model is not how it will be handled internationally; what is the plan for international customers needs?


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#14 Cheater

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Posted 22 August 2017 - 01:58 PM

So if I don't have a local raceway I can just name random registered raceways and kick the 15% to them? Do they receive their 15% via cash from JK or in consumable credit?


To your first question, as I understand the scenario, yes, any raceway you wish to select.

To your second question, either in credit for future purchases from JK or as a check, again as I understand it.

I can't address your international situation question.

Gregory Wells

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#15 JK Products

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Posted 22 August 2017 - 02:04 PM

Hi Dennis, no problem. If THIS is not a raceway; please let me know. 
 
Hi Matt, I do not find it funny at all that PCH and Professor Motor are taking sales and profits away from raceways. 
 
"So if I don't have a local raceway I can just name random registered raceways and kick the 15% to them?" Yes.
 
"Do they receive their 15% via cash from JK or in consumable credit?" A direct credit on their account that they can apply as they please.
 
"Surely this business model is not how it will be handled internationally, what is the plan for international customers needs?" We will sell direct overseas at higher discounts than they used to receive from distributors, in the event they don't choose to purchase from an international distributor.


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#16 Matt Sheldon

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Posted 22 August 2017 - 02:23 PM

I do not find it funny at all that PCH and Professor Motor are taking sales and profits away from raceways.


They are not taking profits if the raceway is not stocking it to begin with or it takes four weeks to place an order for it. The product was never in their business plan to start.
 
At the end of the day nothing changes except the distributor is not in the mix.


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#17 Mattb

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Posted 22 August 2017 - 02:49 PM

I understand the thoughts behind this and the logic of no distributors to make money and add to final cost and putting that profit back in the raceway. There are a lot of factors at work and one mentioned is you can go online and order some parts your raceway may not even be aware exists. You will have them at your door in 2-3 days. I can only speak of personal exp with Prof and PCH. Both get high marks from me for their service and large inventory they have. Surely better than any raceway I have been in.   

 

Maybe if those guys set up a commercial track and opened for two hours on Friday night it would meet requirements.   

 

Supporting your raceway... I am all for that, at almost any cost you can afford. I've made my opinion known many times. The future is really bleak for most commercial tracks. Guys better get to any track they can and spend their money and support any way you can.   Does that mean restrictive trade rules and false markets? I'm not sure that is part of a free economy.   

 

Who says that if Hobby Lobby stocked 1/24 slot cars and parts it wouldn't help grow the hobby??? It is a plus that somebody is taking action to try and help the future of our hobby. Many sides to this.


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#18 JK Products

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Posted 22 August 2017 - 02:49 PM

Hopefully with the strong support we are showing, and the larger margins they will now be getting selling JK Products, raceways will stock/carry more of our products. In the event they don't have our products in stock, with a mere $15 minimum order for Raceways to receive free shipping, they will no longer have to "wait" to save up for a large enough order to get free shipping. Racers will get their products faster than ever.

 

Wow, Matt S, "At the end of the day nothing changes except the distributor is not in the mix." Nothing except more sales for raceways, more profit for raceways, automatic commissions, faster service, better communications, more manufacturer support, more sponsorship, ... 

 

Outside of that ... not much at all. ;)

 

Matt B, "Maybe if those guys set up a commercial track and opened for two hours on Friday night it would meet requirements."

Raceway requirement #4

 

#4. an active slot car program (you can’t just own a track to do online sales)

 

Pretty clearly covered. 


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#19 havlicek

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Posted 22 August 2017 - 03:04 PM

I for one think it's all good. Certainly if I were a distributor, I might not be thrilled with all this, but I'm neither a racer or a distributor or a track either. Now that you mention it, I don't know exactly what I am! Anywho, existential considerations aside (I'll have to check with Descartes and get back later on all this), I can't see anything but a good thing here. Personally, I buy from both Scott and PCH all the time for very simple reasons:

1) They have the stuff I need
2) Their prices are fair

3) Their service is consistently good

Look, in the interests of full disclosure, I've been a "fan" of what JK has been doing since before Tim took the reins. I have no dog in this fight (*not that there's a fight actually going on), but moving the hobby forward is something I'm always going to support. JK products' business model seems to me to dovetail nicely with all that. Add to that the simple-but-painful reality that slots is an ever-decreasing "pool,",\ and anything that aims to serve the slotter directly ought to be seen as a positive.  

That's my story, and I'm sticking to it! I haven't been into a raceway in decades, so you may very well choose to completely discount what I just said. I'll still think you're cool.   :D


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#20 kvanpelt

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Posted 22 August 2017 - 03:18 PM

Is there a place that lists the criteria for registering as a club or did I miss that?

 

What is the club discount? Type of track required? Number of members? That sort of info!


Kevin VanPelt
 
 

 

 


#21 John Streisguth

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Posted 22 August 2017 - 04:07 PM

I like this business model. My "home" track is a bit over an hour away. If I need something, I would have to call to check if they have it. Then if not, have them order it and "hope" the distributor has it (and the last order I had them place, 3/4 of the stuff was unavailable).  Then drive down to get the parts. I could order from another raceway that I go to in the series I race, but I prefer to give the profit to the one I would most likely go to on a weekly basis. With this new business model, I can get the parts I need pretty quickly, and my "home" track has a better chance of staying in business. Just the price of gas is worth the shipping costs, not to mention the time.  


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"Whatever..."

#22 olescratch

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Posted 22 August 2017 - 04:09 PM

If the old way of doing business has proven to be a disaster, then any effort to improve or change it can only be given a chance! I'm not a racer, I only like to build. 

 

You only seem to be concerned with the "racers," this is what I've determined to be the "killer" of this hobby! Just like with anything else, when only one group of people are taken into consideration, the others move on!! 

 

I agree that something needs to be done to improve the amount of people coming into this hobby and thus increase the profits of the commercial raceways, but if you are only concerned with the racers, I think I've already stated what I see as your future! 

 

In regards to PCH and similar businesses, guys like me looking for that old part not commonly used in racing any longer would just be SOL without them. 

 

BTW, what are the qualifications to be listed as a "club"? I have a home track that I enjoy with my grandkids (four-lane routed). I do all the building of the cars, etc. Is it a club worthy of a discount in your eyes?


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#23 Tim Wilkins

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Posted 22 August 2017 - 05:27 PM

My two cents.  

 

First, I believe in supporting your local track whenever possible.  

 

That said, PCH, though smaller than it was, is a raceway. They are a commercial establishment and pay rent. They have customers come in and pay track time to race on their swoopy-eight track. Commercial rent is very expensive in Southern California and PCH had to downsize when the store they occupied in a strip mall was demolished for other commercial use. A track owner trying to survive by establishing a successful online business is not a bad thing.  

 

Also, since I can buy all my products directly from JK Products and have my car set up prior to arriving at the raceway, why bother buying these products at my local raceway? Simply put: it seems like JK Products wants you to substitute PCH online sales for theirs.


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#24 Samiam

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Posted 22 August 2017 - 06:10 PM

Tim,

 

I'm only going to ask, if a guy named Ken from Lucas, TX, seeks discounted pricing, please advise him to go Turbo-Blast it out his azz.


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#25 crazyphysicsteacher

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Posted 22 August 2017 - 06:18 PM

I have a question. I understand the costs and the discount in items given at each step. The local raceway buys my products and I give them a 50% discount on retail cost to provide a profit margin. If I wanted to go to a distributor, I would need to give another 50% off to allow them to make a profit. I personally cannot make money at that range so I did not go that way and do not have the exposure I could have gotten.

 

This seems odd in that unless all of the products that JK sells are immediately discounted by 50%, JK has just upped their profit margin by 80-100%. JK can make this move because they are a keystone source of product like Parma once was. They control the direction of the market because they have the ability to supply materials. This method does shut down smaller sources from being able to expand, since the distributors allow raceways to see products that they may never see otherwise. 

 

The distributor allows for a new source to get their product to a larger audience without having to go to each and every track to sell the product. The end of distributors will mean only the way to push a product is to go to every track and make your sales. Even the internet won't help because not all track owners spend their day surfing the internet or even list an email address.

 

I am willing to now sit back and watch the end result, what ever may come. Remember, we are not hobbyists, we are racers who will do what it takes to win.    


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#26 Wizard Of Iz

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Posted 22 August 2017 - 06:41 PM

When SCR&H was open, we coached our racers to buy from us. And, we were blessed to have a strong core of local racers who created positive peer pressure for other racers to buy locally instead of online.  

 

No... I'm not naive enough to think that all of our racers spent 100% of their racing dollars with us. But we made it possible for our racers to buy from us by keeping the parts wall well-stocked with everything they needed to race the classes that were part of our program. You can't sell what you don't have! Those raceways that don't keep their wall well-stocked have nobody to blame but themselves for lost sales as they've left the racer no option but to buy elsewhere. 

 

I believe that a far bigger problem than distributors selling to re-sellers is manufacturers selling directly to individuals – and often at a discount. When that happens, there's no reason for the racer to ever buy from his raceway at full price.

 

By the way... I rarely faced any delay in getting parts from the distributors. Crawley is in Florida so everything I ordered from them on Monday morning was in our shop on Tuesday. Eagle and ERI are a few states away, but everything that I ordered from them on Tuesday morning was in our shop no later than Friday – and it often showed up on Thursday.  

 

And I appreciate the gesture of JK sending 15% of direct sales to a designated raceway and hope that catches on... however... if the racer buys the product from the local raceway, then the raceway gets 40%. Why not just refer the racer to their nearby raceway?

 

For example... there's currently no track in Jacksonville so I buy parts from the other in-state tracks. If I switched and bought my JK tires, chassis, and bodies directly from JK, those tracks will only get 15% instead of 40%.  


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#27 Tim Neja

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Posted 22 August 2017 - 06:45 PM

Actually Tim, I've been made aware that Scott does have a track at this time. It's a Bob Scott track for his racing program. I haven't been there physically in a couple of years so I didn't know that.

 

I do buy from Scott – because his stock is second to none –- and our local raceway will not stock adequate parts for us to race with many times!!! I've had to buy from Scot because we've had a major race coming up and our local track does not stock what I need to prepare. And Scott at PCH has always come through!! Thinking this move by JK is going to hurt PCH I believe is wrong – because there are a lot of racers that would not be racing if it were not for Scott!! As some others' have pointed out,  our local raceway is not good at stocking what we  need. So they are hurting themselves, not the other way around!! I buy all I can from my local raceway, but more often than not, when I try, the products I'm looking for are not there. 

 

FWIW


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She's real fine, my 409!!!

#28 Cheater

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Posted 22 August 2017 - 06:46 PM

And, honestly, if winning a slot car race is centrally involved in your personal self-image or your feelings of self worth, you're a part of the commercial raceway industry's issues. A harsh opinion, but I do feel it's the truth and why the commercial slot car racing 'industry' is in the shape it is in in 2017.

 

I feel the flames coming on... LOL!


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#29 Samiam

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Posted 22 August 2017 - 06:49 PM

Let's just remember that all the distributors have a clause in their ToA that limits sales to actual commercial raceways. If this was enforced in any manner, Tim would not have gone this route. The distributors who sold to unqualified resellers, violating their own terms, set the tone. They shat the bed. Now they got to sleep in it. 

 

As far as selling direct to the racer, maybe limit it to racers with no track within say... 50-75-100 miles? And to John Stewart's comment about being "racer" centered, I think the term racer is used generically as any slot car enthusiast. Maybe call us "slotters"?


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#30 tonyp

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Posted 22 August 2017 - 06:54 PM

I think the TOA is long defunct.

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#31 Matt Sheldon

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Posted 22 August 2017 - 06:54 PM

So the real message should be a "no mail order policy" as that is the message JK is delivering.

 

What stops a track from becoming an "authorized" JK raceway and simply having a full on mail order company that compliments it? What is the difference at that point from them and the perceived "bad guys".

 

One thing to add is that the couple times I was forced to order directly from Parma, the orders were shipped from stocking raceways I had no idea existed. I always thought it was cool that they gave them the business.


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#32 Half Fast

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Posted 22 August 2017 - 06:55 PM

Both PCH and Prof Motor have served the slot hobby for many years, supplying hard to get and otherwise unavailable parts with fast service. To lump them in with various fly by night operators is IMHO unfair.

 

To cut them off from an important product line may severely harm their business. If that happens it will be to the detriment of the hobbyists, the business, and to JK products.

 

YMMV.

 

Cheers,


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#33 PCH Parts Express

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Posted 22 August 2017 - 07:05 PM

Tim Neja, PCH has a commercial track with Trackmate timing and scoring made by Bob Scott that is used for parties, races, and rentals. Track time is for sale and you can come and race. Thank you for the kind post 


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#34 JK Products

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Posted 22 August 2017 - 07:26 PM

Tim Neja, PCH has a commercial track with Trackmate timing and scoring made by Bob Scott that is used for parties, races and rentals. Track time is for sale and you can come and race. 

 

4. an active slot car program (you can’t just own a track to do online sales)


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#35 Samiam

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Posted 22 August 2017 - 07:26 PM

I think the TOA is long defunct.

 

Sorry,  ToA... Terms of Agreement. I should have just spelled it out.

 

The fact that there is no Track Owner's Association says a lot.


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#36 PCH Parts Express

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Posted 22 August 2017 - 07:39 PM

PCH has our fall/winter race schedule below. 

 

Tuesday:  6 PM  NASCAR

Thursday:  6 PM  GTP


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#37 Mark Wampler

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Posted 22 August 2017 - 08:21 PM

PCH has served me well. Super extensive stock, prompt delivery, good packaging. This decision does have a big impact for those who have enjoyed Scott’s service.


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#38 Mattb

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Posted 22 August 2017 - 08:29 PM

Lot of points of view. Trying something new is a good thing. It's just a rough situation. The raceway doesn't pull in the $ to keep a huge inventory, so you have to go to someone who who does and that is a well-stocked company doing retail sales and making good profits to continue to buy and stock everything. Of course, this keeps the profits away from the track who has limited parts in stock. Tough problem to make everybody happy.    

 

I appreciate all these guys that make and sell products to keep us going. I also appreciate the guys that like Scott and Andy that work hard to have what we need when we need it, and ship it quick and safe. I wish there was an easy solution for the whole industry.


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#39 Phil Hackett

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Posted 22 August 2017 - 09:18 PM

Sorry,  ToA... Terms of Agreement. I should have just spelled it out.
 
The fact that there is no Track Owner's Association says a lot.

 
You had to be at the meetings to understand why it failed despite the efforts of many. Herding cats is always impossible.
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#40 Rob Voska

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Posted 22 August 2017 - 09:24 PM

It seems if a new product (chassis, guide, motor, body, magnet, leadwire, braid) comes out everyone wants one. Untested, gotta have it, givemeonegivemeonegivemeone. Because racing is about advancement, moving the ball forward, new is better, faster, stronger. The hell with the old and in with the new. But in all that haste the beginner was totally forgotten about by the hardcore "racers" and the never-ending "hot part" of the month club. 

 

Now an obsolete distribution system that is antiquated and full of flaws gets a new modern twist and it's rejected like a bent axle before it's even tried. Racers that embrace change now reject change... Interesting...  very interesting...


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#41 Rick Moore

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Posted 22 August 2017 - 09:38 PM

$0.02…

 

Not sure how this one will play out over the short-term or long-term. I can see a lot of facets to this one, and points that can be made on all sides…

 

Admittedly in all honesty, my own opinions and experiences are similarly mixed…

 

The reality of internet sales has created a new dynamic in consumer product retail services that goes far beyond slot cars and commercial raceways. Ask any former local record/cd store, electronics store, book store, or hi-fi equipment store, just to name a few I miss; and though I miss them, I avail myself of the internet to replace that loss of local outlet. The current survivors are the ones who have been able to adapt to this new internet sales dynamic, and even that won’t guarantee success. A large “one-stop shop” inventory, web page design, ease of purchase, competitive pricing and shipping options, return policies, and customer service are tantamount to just being able to start to compete for sales. No longer bound to the “nearest” store for products, consumers now avail themselves of all web retailers across the entire nation, and around the world.

 

This never boded well for the local commercial slot car raceway. Slot car enthusiasts, like all other product consumers, have found the great convenience of online ordering and home delivery. Any attempt to put this genie back in the bottle will be futile. For those slot car geeks who live 30 minutes, an hour, two hours, or even greater distances and time away from their “local” raceway, if there even is one, these online sales have been a major contributor to their staying in the hobby.

 

For me there was one time when not only were there no raceways within hours (which has happened a few times), but circumstances of much greater significance within my personal life would have prevented my visiting them even if they had existed. It was during that period I found PCH on-line and first ordered from Scott (the inventory and customer service were first-rate, and continue to be such). Most likely I would have given up on slot cars during that period otherwise. Instead, despite not being able to go anywhere to run my cars, much less race, it allowed me to enjoy those brief hours late at night, after all the chores of the day were over, giving me a chance to unwind and destress in preparation for the next day…

 

There was also a time when JSCG was the only “raceway” on the FL west coast. Two tracks, non-commercial, on private property, nor was this a club, with limited-to-no inventory, and after John’s death we only continued to run our cars there (no official race program, but we had races sometimes…) by the graces of his widow, Nancy. If not for online sales, none of us would have had the supplies needed to go there just to play with our cars…

 

All that said, I also understand the importance of supporting that local commercial raceway when there is one, regardless of any consideration for the typical life expectancy. I’ve lost count of how many have come and gone down here in FL-West over the last 20 years or so… almost as many as the girlfriends and wives… hmmmm… maybe it’s me…

 

In the meantime, I’ll keep an open mind on this subject and continue to observe the points and concerns of others while, as I said before, seeing how this plays out…

 

Rick / CMF3


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#42 gatormark

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Posted 23 August 2017 - 05:22 AM

There is a guy who sells direct to racers,hes presently moving from Calif to Texas; ya'll know who he is. While I believe he is a honest Christian man he himself has said (track owners are going to hate me) for selling this low. There are also companies like O/S and RTR who will sell to you direct, no dist, no track owner needed... not good. Now if they sell at list and you're willing to pay that, fine.

 

Our business sells direct to end users only at list price! If we are caught undercutting our retailers we loose the vendor, period, and there are plenty out there who would love to have our line. I tell end users in the field, yes, I can sell to you at list, you may want to check the local retailers as they normally give 10 to 15% off. The product avg price is $1,500 so it serves them to shop. We still get the same commission.

 

If the e-Bayers and online shoppers don't support the track this deal is done. I'm soooo tired of preaching this to people.


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#43 havlicek

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Posted 23 August 2017 - 06:36 AM

Look, this is all about competing interests:

- Racers want what they want, when they want it, and for the lowest price.
 

- Tracks want racers and retail dollars. They need this for their very survival.

 

- Manufacturers need to be profitable, or there will be no products for racers to use and others to sell to them.

Everything flows from the above.


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#44 American Adrenaline Spdwy

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Posted 23 August 2017 - 09:51 AM

I understand that the raceways need to survive, as I am a track owner, so i see this as a double-edged sword.

i see that you are offering free shipping on orders of 15 bucks or more to a raceway, when a click and ship minimum price is lets say 6 bucks how can you make any money on 15 dollar sales?

1) Selling direct to racers isn't cool period... I have overhead... this will ruin the industry.
2) I can stock all of your slot items if I wanted to; I just stock what i feel my racers will buy.
3) If the racers who buy direct from you aren't known how can we keep you honest with the said commisions?
4) What if said racers race at different tracks and like them all then only one raceway gets the commission. It becomes a popularity contest and it also forces tracks to discount the item.
5) Clubs, while they are cool for the racers who join, they take away racers and sales from the raceways.

If you really wanted to help out the tracks you wouldn't sell to anyone except the bona fide raceways that pay taxes and have overhead.  This type of thinking is what got us into this quagmire in the first place.


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#45 SlowBeas

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Posted 23 August 2017 - 12:02 PM

JK must do what it must do to survive. Plus, JK is offering tracks a piece of pie for doing nothing.

 

Tracks will not be required to stock large quantities of JK parts (although they'll want to have some quantities on-hand to satisfy on-the-spot demand). In my eyes, the tracks save $ on upfront inventory expenses while collecting a percentage of JK's sales. A win-win.

 

Next thing you know, tracks will start offering manufacturers a piece of their rental/race entry fees. Fair is fair.  :D  Just kiddin'.

 

Whatever it takes to keep these businesses alive, I support it. Tim is trying something new to help his business thrive.


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#46 JerseyJohn

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Posted 23 August 2017 - 12:39 PM

OK lets see if i have this right for me as a user of JK products..

  • The raceway buys JK products directly from JK at a better price margin. Can buy in any quantity they want and don't have to wait till their order is big enough. 
  • Racers continue to get JK products at their raceway
  • Direct access to the manufacturer.
  • As I don't have a home track  (closest track is an hour away ) I can continue to purchase from the track I race at. If I can't wait, I can buy from tracks like HVR or PCH with online stores.
  • I can also as before if I wish, purchase directly from JK but, now with a new added benefit of directing a 15% credit to the raceway of my choice.
  • This system works for me because not having a home track, i can buy when i need to from JK and the track gets a piece where before they got nothing.
  • Tracks that don't have online sales could benefit from the 15% credit if chosen. 

OK, what am i missing?


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#47 Brinkley47

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Posted 23 August 2017 - 01:32 PM

I stand with PCH on this one. Scott has bailed me out on more than one occasion. I have even used Scotts website to show my local track what to order. I hope he is still able to carry the product line he was before.

I don't want to put in 5 different orders as a racer. I am sure racetracks would be even worse regarding the # of orders.

Business 101 - Make it easy to do business with you.

This doesn't feel "easy."
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#48 Bernie

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Posted 23 August 2017 - 02:03 PM

Not that it matters anymore but I too stand with PCH. I try to buy what I can at my local raceway but sometimes it is not possible. PCH has always given me great service. Hope they can weather the storm. :good:


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#49 jimht

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Posted 23 August 2017 - 02:16 PM

JerseyJohn said:"ok what am i missing"

 

Uh, the Distributors have historically been the big boys in the business, with more money tied up than any manufacturer or Raceway...and concurrently have been the biggest supporters of the Hobby. The question is not whether they can do without JK, but whether JK can do without them...we'll see.


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#50 JerseyJohn

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Posted 23 August 2017 - 02:49 PM

Jim whether we like it or not times have changed we get information in a second and we have a lot of options on how we purchase. That being said more and more manufacturers are cutting out the middleman and selling directly allowing him to be more competitive with their pricing. As I said this appears to be no loss for the raceways and yes it will have an impact on the distributors unfortunately this is the way marketing is going throughout the country and every way a imanageable Mac
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