Redcat Racing Price Change Information

The following revised dealer, MAP and MSRP vehicle price list will go into effect on October 25, 2011.

For those of you that follow our wholesale page updates and receive our dealer emails, you will know that we have been talking about a price increase for many months.  We have done our best to hold off as long as possible by averaging our old costs of in-stock inventory with the new higher costs of newer inventory.  All current in-stock inventory and incoming shipments now reflect our higher costs, therefore it was time to adjust our wholesale, MAP and MSRP.

There are three main reasons for these price increases and if you have time to do some reading, you can see the main factors that caused this by clicking the links below. 

Rare earth magnet shortages & cost increases which have caused brushless motor prices to sky rocket.  This is the main cause of the price increase for brushless vehicles.

http://www.renewableenergyworld.com/rea/blog/post/2011/08/a-change-of-perspective-is-needed-to-tackle-the-soaring-rare-earth-prices

Labor costs in China has increased dramatically.

http://www.businessweek.com/magazine/small-companies-in-china-feel-the-squeeze-08112011.html

Strength of US dollar compared to Chinese Yuan has decreased and continues to decrease daily.  (See the change in June 2010 in chart)

http://finance.yahoo.com/echarts?s=USDCNY=X+Interactive#symbol=;range=2y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

We waited as long as possible to make sure that all old priced stock was depleted before the price changes took affect.  Many items have been at our new costs for months and we have accepted a lower margin in order to do this all at once.  We have also been experience changes in costs since June 2010, when the weakness of dollar and big changes on the chart above in link 3 are seen.

With the new prices, we will be rolling out a few dealer programs that can help counter the price increase, while allowing you to earn more margin on our vehicles than ever before.

These include but are not limited to the following programs.  We expect the following additional discounts will be live at time of price increase or shortly thereafter.

1. We will offer a discount for EFT (electronic funds transfer) payments, that will be integrated with our website.
2. Discounts on certain sized orders will be setup so that based on the criteria we put in place, certain order sizes will earn you a discount for that particular order.
3. Case discounts on many vehicles will be available for those of you that can purchase by the case. 

The prices below are the proposed price changes that will occur on October 25, 2011.  We would love to hear from you, if you believe there are some prices that will great affect your profitibiltiy.  We raised MAP and MSRP in order for you to maintain previous profit margins and in many cases, the increase in MAP will make it more profitibable for your company.