As society slowly opens up and our lives begin to get back to normal, we would all like to assume that everything will go back to the way it was in February 2020, before the world changed. In the last few months, it has become apparent that, from a supply and logistics perspective, that is far from the case. In all industries, especially our niche hobby industry, there have been major issues in keeping shelves full and keeping prices down. We want to take a minute to walk you through some of these issues in case you were not fully aware:

Supply: Many manufacturers are having difficulty producing goods for various reasons. One of the most common reasons is not that they are having trouble producing their core product, but rather, they are having trouble obtaining the vessel in which the product is packaged. For example, some paint manufacturers are unable to get aluminum spray cans and glass or plastic bottles. A model rocket manufacturer might have an issue getting the canister that the rocket engine is packed into. These raw materials are as crucial to the production process as the product itself.

Prices for Raw Materials: Because of the above, many suppliers of these raw materials are using the opportunity to drastically increase their pricing. Think back to your Economics 101 class – when demand is up and supply is down, prices can increase with little impact on sales. When the cost of the paint bottle increases, the cost of the final packaged product must as well, for example.

Shipping Lead Time from Abroad: Booking a shipment from a foreign country has many complexities to it. But the basic logistics involve staging the goods and finding space on a ship or airplane. With the number of daily flights still well below their pre-pandemic level, most goods must go by sea. But because of labor shortages and shipping companies a limiting the number of ships sailing at any given time, finding space on a ship, specifically for full container loads, is extremely difficult. What used to take 2-3 weeks to book space now can take well over a month. At the same time, manufacturers are dealing with increases in demand, leading to longer lead time for production. Both of these factors together mean that orders previously taking 8-10 weeks to receive are now taking a minimum of 12-16 weeks.

Shipping/Freight Costs from Abroad: The supply/demand curve is also at play here. With fewer ships operating coupled with higher demand for those ships, prices have skyrocketed. A 40-foot container from Asia that used to cost between $4,000 and $6,000 now costs close to $20,000, a cost increase that ultimately gets blended into the price to the end user.

Shortage of Domestic Trucks: Once goods arrive at a USA port, they must be transported by one of the many truckers that drive the country’s highways on a daily basis. Just like with the previous issues, the labor shortage and added volume has left a shortage of available trucks and truck drivers in many regions. This causes transport prices to increase, as well as delays in receiving shipments from the port.

We do not foresee any of these issues improving significantly before the end of 2021, though we are hopeful that we start to see baby steps in the right direction as we get closer to this year’s holiday season. Nonetheless, all of these issues, taken together, have already begun resulting, and will continue to result in MSRP and cost increases for many brands.

 WHAT IS MSRP?

MSRP or Manufacturer's Suggested Retail Price is the list price of a manufacturer's products. Almost all hobby products have a list price. Some call it the "top line" price. This price should be consistent for all dealers offering products for sale online.

However, there are some unscrupulous dealers (SEE ABOVE EXAMPLE) that inflate the MSRP to allow them to show larger discounts when they run sales promotions. This is why it is so important to compare MSRP prices before you place your order. You can always count on the fact that Internet Hobbies will never adjust the MSRP on any product. It's not how we do business.

Don't fall for their bogus MSRP tactics. If you do, you'll probably be tricked into thinking you are getting a better deal only to find out you paid more.

ALWAYS REMEMBER, YOUR BEST DEAL IS AT INTERNET HOBBIES

 The newest kit from Hong Kong Models of their Boeing B-17 scale is coming in the 4th quarter of 2019 - but this one is not in 32nd scale!

So most people would think that a new B-17 from Hong Kong Models would be in 32nd scale. We have been thinking this is coming for a while now, and we can say that this all-new tooling 48th scale B-17G (Early Production) is on the way in the last quarter OF 2019.

HK is promising this 1/48 kit with easy and quick to build, very detail surface detail and sensible engineering, with the design concept of this kit combining HK's past experiences with the 32nd scale kit along with the same detail, simple but detailed build and engineering.

We are very excited about this new B-17G for quarter scale modelers. We believe this kit will be the definitive model of this famous aircraft.

CLICK HERE TO PRE-ORDER YOUR KIT

Tamiya has now confirmed their new-tool kit of the Lockheed P-38®F/G Lightning in 1/48th scale is on the way. It is without question that the P-38 is a unique fighter from World War II and it’s been one of the most popular subjects in this scale. Tamiya has promised that extensive research and ever-evolving mold-making techniques are being used to devise this kit. Tamiya’s designers also promise that they have gone to great lengths to achieve the best fitting and most accurate P-38 Lightning F/G model assembly kit to date. We are sure this kit will adorn modelers collections and be the topic of discussion in the various model contests across the globe for the foreseeable future. 

The Lockheed P-38 Lightning in history:

This WWII fighter was a daring design with twin booms and a piston engine in each, plus a central nacelle which housed the cockpit and armament (machine guns and cannon in the nose). Introduced in June 1941, the aircraft went on to be used extensively in the Pacific through WWII. 

CLICK HERE TO PRE-ORDER YOUR KIT

Pre-orders are a very important part of the hobby industry today. Now that many hobby manufacturers are announcing products well in advance you may need to pre-order the products you want. Hobby companies rely on these pre-orders to determine their production requirements. They usually do not go into production until they receive the required amount of pre-orders from their distributors and dealers. Many of these products are released in limited quantities, especially the first run. Placing your pre-order with us will make sure you get your item as soon as it is available.

As a hobby dealer, Internet Hobbies is required to place our orders for new releases often months in advance. We are required to make a firm commitment to our suppliers so we can receive the merchandise upon release. When you place your pre-order for these products, we also require you to commit to us. We achieve this by charging your credit card or PayPal upfront. By doing this, we know you’ll want the item when it arrives.

When it comes to future merchandise, we have no control when these products are actually released. There are many reasons why an advance release may be delayed. Rest assured, if you have a pre-order for a future product, you will receive it as soon as it comes in.