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Redcat Racing Notice

We are fighting a dangerous and destructive trend in the R/C industry. In an effort to protect the very heart and soul of the R/C industry, the small to medium-size R/C dealer, we are no longer selling and supporting brands such as Redcat Racing that are aggressively trying to out-promote and outsell the very brick-and-mortar and online retailers they supply. These direct competitive tactics are destroying retailers in industries like ours.

Recently, Redcat Racing launched a new direct retail website, aggressively promoting Redcat mainline products at the same price online dealers are forced to sell at. They prominently display free shipping promotions on relatively low-dollar orders. Even worse, they have taken threatening steps to outbid all online dealers in Google Adwords (a pay-per-click online advertising platform), giving every indication that they no longer want competition at any level (yes, retailers are no longer a crucial partner in, and component of, the distribution chain--we are now the competition of the manufacturer). We feel that this competitive action coming directly from R/C manufacturers will be another death-blow to a struggling industry. We have articulated these concerns in lengthy and detailed letters to Redcat management, but have not seen or been notified of any intent to alter pricing and promotional policy.

Competition between dealers in our industry is fully expected as it is in any industry. That's just the nature of business. But when a manufacturer enters the direct sales arena, they are not on the same plane of equals as dealers are. Rather, they possess a special trust and authority that no middleman can ever create or duplicate. Thus, the manufacturer's entry into the direct sales market gives them the highest advantage over their retailers--retailers who have invested time and resources in marketing of the brand and financial resources in inventory that now cannot be as easily moved.

We just want you to be aware of these disturbing and damaging trends and actions of R/C manufacturers when you consider purchasing products within our industry. As industries continue to consolidate in the hands of the big players, we will always fight for the future and success of the little guy.

Sincerely,

Michael Roberts
President/CEO
RC Hobby Explosion