News

WHY ARE THERE SO MANY SHORTAGES OF HOBBY MERCHANDISE

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.

We encourage everyone to remain acutely aware of the global issues and how they are affecting both the availability as well as the price of the goods. We thank all of you for your understanding and welcome any further questions regarding how the global situation is affecting the hobby industry.

COVID-19 - HOW HAS IT AFFECTED THE HOBBY INDUSTRY AND YOUR ORDER?

Many of our customers have been waiting patiently for their orders to be delivered. Most of you probably aren't aware of just how much of an impact COVID-19 has had on the hobby industry. The greater percentage of all hobby products are made in foreign countries such as China, Hong Kong, Taiwan, India, South Korea, Spain, Italy, The Czech Republic, Germany, France, and Japan.
 
Every one of the above countries has had their manufacturing sectors shut down because of COVID-19.  That means nothing has been produced or exported to the United States for several months. This has caused extreme shortages in the distribution chain resulting in outages at the retail level.
 
The demand for hobby merchandise increased dramatically this Spring because a large percentage of our population was stuck at home in self-isolation. They needed hobby products to help them pass the time of day. Perhaps you were one of those individuals.
 
The good news is things are about to get better as more and more hobby manufacturers are opening back up and ramping up production. There will still be a little delay while their products are being shipped to the United States but at least their is light at the end of the tunnel. We appreciate all of our customers for their patience and understanding during this extraordinary time. We will strive to get everyone's orders out as fast as possible.

What Is MSRP?

CHECKOUT THE DIFFERENCE IN THE MSRP PRICES CIRCLED IN RED

 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

LOOK AT THE DIFFERENCE IN RETAIL PRICES BETWEEN THEM AND US

It just amazes us how the big shots in Texas get away with their crazy marketing.
First of all, they advertise outlandish discounts that only apply to a few hidden products. Their latest tactic is to mark up their retail prices so they can offer their customer a bigger "discount". Don't these guys realize customers are not dumb and won't fall for their marketing tricks? Why would you buy from guys that are constantly trying to deceive you with these types of promotions? We would never insult your intelligence by utilizing such tactics.

HK MODELS ANNOUNCED A 1/48 B-17G EARLY PRODUCTION KIT

 

 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 Announced Their New 1/48 Scale Lockheed P-38®F/G Lightning Kit

Tamiya Has Announced Their New 1/48 Scale Lockheed P-38®F/G Lightning 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

Tamiya's New Minimum Advertised Price Program Starts June 1, 2018

Dear Modeler,

A few days ago we received notice of Tamiya's new Minimum Advertised Price Program. Their program only allows hobby dealers to advertise and sell their products at a pre-set discounted price. This means that every hobby dealer can only sell their products at Tamiya's MAP price. Their rational on this program is to halt the massive unfettered discounting of their products in the marketplace. They feel this lessens the value of Tamiya products and harms their brand. We have been told by our suppliers that Tamiya will strictly enforce this program and any dealer not in accordance will not be allowed to sell their products.

What does this mean for you?

The program takes effect on June 1, 2018. All hobby dealers will be required to alter their pricing to adhere to the Tamiya Minimum Advertised Price Program. On that date, Internet Hobbies will have no choice but to raise our selling prices on all Tamiya products. We will also be required to not include any Tamiya products to any Internet Hobbies sales promotions as this would cause us to not be in compliance with the rules of their program and put us in jeopardy of losing our ability to sell Tamiya.

This means you only have a couple weeks to get your orders into us at the old pre-MAP prices. Why pay more after June 1st when you can still take advantage of our current low pricing and sales promotions.

Pre-Order Policy

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.

MODEL TRAIN SCALES

MODEL TRAIN SCALES
We're here to help you pick out the right scale to start your journey into the the World's Greatest Hobby, model railroading.

The most popular scale is HO (Half-O Gauge). This scale became popular after World War 2 when many servicemen returned home bringing back handmade model trains from Europe and Asia. The ratio of 1/87th the size of the prototype made the trains smaller than the much larger pre-war O Scale trains. This was important because post war housing was much smaller and lacked the room to display the larger O Scale trains. HO allowed the model railroaders of the time to build a train layout in this available smaller space. The prices was also much cheaper than O Scale, Keep in mind, when I mention O Scale I'm not talking about Lionel O Gauge Toy Trains.

During this same period, S Scale trains came on scene. These trains were 1/64th the size of the real trains they represented. They were an "In Between" size being in between O Scale and HO. There still is an active community supporting this scale but lately availability of merchandise has been on the wane.

N Scale (1/160th the size of the prototype) arrived from Europe in the early 1960s. At first the trains were of European prototypes but over the years more and more North American trains are available to N Scalers. If you are tight on space,this is the scale for you as you can build a model railroad empire in a small space.

During the early 1980s a German train manufacturer by the name of LGB (Lehmann Gross Bahn) introduced the world to large scale models. The size of these trains (1/24 proportion) was an instant hit. You could find these trains in back yards across the country as garden railways, melding gardening with model railroading.

Last but least in Z scale, the smallest of all model trains. It's tiny compared to HO scale and has an avid fan base for those looking for brag rights of having the smallest layout in a small suitcase.

MODEL AIRPLANE SCALES

MODEL AIRPLANE SCALES
Many of our customers have asked, “What’s the best model airplane scale to start collecting?” Let’s review the options and discuss the benefits and drawbacks of each.
The world’s most popular scale is 1/72. This was the original scale used back in the late 1930’s for some of the first plastic assembly kits produced in England. This scale became popular with modelers in the 1950s with the mass production of Airfix and Frog kits. 1/72 kits are small, the average WWII fighters having a wingspan of only 4 to 5 inches. This makes this scale a great choice if you have limited space to display your models. The major drawback is the size of the bits and pieces. Those of us older modelers may find it a daunting task assembling these diminutive kits.

The next most popular scale is 1/48. This scale became popular in the 1960s and 70s mainly due to the large series of 1/48 scale kits produced by Monogram and later Tamiya. The main advantage to this scale is the huge selection of available kits. Almost every major manufacturer produces kits in this scale. The amount of detail found in these kits is excellent. The major drawback is their size that requires a larger area for display. One solution is to hang these kits from the ceiling.

Now we come to the big one, 1/32 scale. This is a relative new scale for the hobby. It is by far the largest of the four most popular scales with wingspans reaching up to 30” or more for bomber models. The details found on these huge kits are awesome and truly offer the modeler a great building experience. The only drawback is their larger size making them difficult to display.

The last scale we’ll talk about is 1/144. These are the smallest airplane models designed with the collector in mind. Each kit has a limited number of parts making them easy to assemble. You can display a huge collection on top of a dresser where you might get one 1/32 scale model to fit. The major drawback is limited availability of aircraft subjects. Even though more and more kits of this scale are being produced, you may be hard pressed in finding exactly what you are looking for.

There are other scales available for model aircraft such as 1/24 and a myriad of older “Fit The Box” scales but the above are the four most popular.

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