Tariffs & Model Airliner Prices

[planes_on_a_shelf]

I understand the current frustration with the tariffs, and like many, have helplessly watched from afar how the orange march could not be stopped, just like over here, the saffron march cannot be.
Tariffs are but I'd say a small component of an otherwise larger evolving problem - but that's not the subject here.

To put things into perspective, it is precisely the absence of tariffs in high consumption economies such as the US, and cheap oil for transportation via sea, that allowed for the proliferation of the precarious manufacturing conditions and severe social and environmental costs in countries such as, in this case and many others (iPhones hello), China, or say Bangladesh, for textiles.
US/UK-based companies thus profiteered from shifting manufacturing to these countries, as their production costs dropped, while profits could consequently increase, benefitting only a few.

See the connection here?

We've always had tariffs over here - and 10pc or 15pc is frankly nothing compared to the exorbitant ones we are made to pay here. The claims of higher tariffs encouraging local production, are vacuous if not carried through with the right administrative and political will and structure.

Just thought to post a note, from the other side of the world.

 

[British Airways fan]

You can self clear in the US? Or just Canada? Everywhere I read I’ve only seen Canadians do it. Do you need to tell UPS you want to clear it ahead of it arriving in the states and how does it work?

I haven’t tried in the states but I would assume so, I’m sure there is information online in regards to this. But correct me if I’m wrong if unable.

 

[pommy80]

Waffle customer service is awful. To buy from him is to expect broken products he doesnt check before shipping and a shitload of swearing if you make a complaint.

Yeah, never again for me. I received a damaged model from him after paying around 50USD for a rare model a while ago (+ another 50 or so for shipping to Aus). The best part was that it was wrapped in one, single piece of newspaper.

On my blacklist of retailers.

 

[British Airways fan]

You can self clear in the US? Or just Canada? Everywhere I read I’ve only seen Canadians do it. Do you need to tell UPS you want to clear it ahead of it arriving in the states and how does it work?

I just found this on Reddit,

You have to contact them and tell them that you refuse that they represent you as broker and that you will clear it yourself.You ask them for the papers and they have to send it to you. Ask where you can give it back when process is done. Beware, they hate when people do that and will try to make it hard for you to contact anyone.

 

[British Airways fan]

I just found this on Reddit,

You have to contact them and tell them that you refuse that they represent you as broker and that you will clear it yourself.You ask them for the papers and they have to send it to you. Ask where you can give it back when process is done. Beware, they hate when people do that and will try to make it hard for you to contact anyone.

Which the latter makes sense because that’s how they make money on the ridiculous brokerage fees

 

[ChairFlyer101]

I just found this on Reddit,

You have to contact them and tell them that you refuse that they represent you as broker and that you will clear it yourself.You ask them for the papers and they have to send it to you. Ask where you can give it back when process is done. Beware, they hate when people do that and will try to make it hard for you to contact anyone.

Just to confirm this is for US instructions? I’ve seen a lot of helpful posts but they always end up being posted by a Canadian.

 

[British Airways fan]

Just to confirm this is for US instructions? I’ve seen a lot of helpful posts but they always end up being posted by a Canadian.

From what I read they were American

 

[UALFan1994]

Well one question that comes up is what is UPS telling shippers.

A bit of digging on their website doesn't come up with much, with references to De Minimis (Section 321)
The CBP website also still references De Minimis.

I think because the orange tub of lard doesn't know WTF he is doing, the agencies responsible to handling the enforcement do not know what to do, nor do the transporters.

TLDR: everything is effed because of an orange idiot.

Let’s calm down bro

 

[Irish]

Let’s calm down bro

He was expressing his feelings very reasonably, wasn’t directed towards anyone, just frustrated with the Trump administration and other agencies, alongside how tariffs are affecting people. I don’t think he’s worked up at all.

 

[UALFan1994]

He was expressing his feelings very reasonably, wasn’t directed towards anyone, just frustrated with the Trump administration and other agencies, alongside how tariffs are affecting people. I don’t think he’s worked up at all.

“Orange tub of lard” and “orange idiot” …that’s pretty savage. Lol.

 

[OscarBravo992]

“Orange tub of lard” and “orange idiot” …that’s pretty savage. Lol.

Can't say he doesn't deserve it...

Regardless, op was expressing his dissatisfaction with the current situation, and the orange man is the one responsible for that. This is an aviation forum, not a political one, so let's keep this thread focused on the tariffs and how they affect buying models, not who implemented them.

 

[swagninja84]

“Orange tub of lard” and “orange idiot” …that’s pretty savage. Lol.

LOL not even. The fact that I didn't use that thing's name, and you know who I am talking about, means it's accurate.

You should hear what the late-night talk show hosts call him. My favorite nickname for him involves Jon Stewart and von clownstick.

 

[diecastfreak]

Yeah, never again for me. I received a damaged model from him after paying around 50USD for a rare model a while ago (+ another 50 or so for shipping to Aus). The best part was that it was wrapped in one, single piece of newspaper.

On my blacklist of retailers.

People in Brazil told me his nickname there is the fisherman. Because he wraps the models just like fish shops used to wrap fish when leaving a fish market.

 

[LeoMuse747]

People in Brazil told me his nickname there is the fisherman. Because he wraps the models just like fish shops used to wrap fish when leaving a fish market.

I affirm this!

 

[squatchys_diecast_hangar]

For us and US retailers in general, especially those of us who run Brick and Mortar stores with a ton of overhead, mind you that we are a minority of retailers. We can’t swallow the extra tariff increases, we try to stay competitive with the online retailers, with little overhead. We will have to raise prices that the distributors pass on to us. Gemini has stated today it will be a 5% increase, the rest I’m sure will be the full 10%. We hope it doesn’t hurt the hobby long term, you never know though.

 

[Jazajia]

People in Brazil told me his nickname there is the fisherman. Because he wraps the models just like fish shops used to wrap fish when leaving a fish market.

Speaking of the devil, this week’s fish are here

 

[Jazajia]

For us and US retailers in general, especially those of us who run Brick and Mortar stores with a ton of overhead, mind you that we are a minority of retailers. We can’t swallow the extra tariff increases, we try to stay competitive with the online retailers, with little overhead. We will have to raise prices that the distributors pass on to us. Gemini has stated today it will be a 5% increase, the rest I’m sure will be the full 10%. We hope it doesn’t hurt the hobby long term, you never know though.

Scott, I think few retailers are in a position to swallow those increases. Maybe the big California shops? And maybe the Vegas-based guys who don’t have to pay shipping from ADI.

The rest of us already operate at a low enough of a margin that if we absorb the increase we might as well just give away the models.

Here are my thoughts from some armchair thinking:

The tariffs could be temporary. If anything in four years the scale could swing to the other side. However, once prices go up, they rarely come back down, so the increases are here to stay I think.

In theory, all the policies being implemented are designed to stimulate domestic industries, which means that things should balance out as U.S. citizens should end up with more disposable income.

However, I don’t see the above happening. Maybe industries that are more essential could see a come back in the U.S. but no one is going to set up a diecast model factory in the U.S. as an answer to tariffs. Even if someone did, it wouldn’t workout. It wouldn’t be cheaper, and probably models wouldn’t be as good.

So what’s going to happen? Well, maybe indeed some people are going to be priced out of the hobby, and some shops will close down. And maybe that’s okay… Maybe it is just a needed adjustment. Maybe there are way too many models being produced and society actually doesn’t need that many tiny diecast airplanes around.

Supply and demand and natural balances.

 

[squatchys_diecast_hangar]

Scott, I think few retailers are in a position to swallow those increases. Maybe the big California shops? And maybe the Vegas-based guys who don’t have to pay shipping from ADI.

The rest of us already operate at a low enough of a margin that if we absorb the increase we might as well just give away the models.

Here are my thoughts from some armchair thinking:

The tariffs could be temporary. If anything in four years the scale could swing to the other side. However, once prices go up, they rarely come back down, so the increases are here to stay I think.

In theory, all the policies being implemented are designed to stimulate domestic industries, which means that things should balance out as U.S. citizens should end up with more disposable income.

However, I don’t see the above happening. Maybe industries that are more essential could see a come back in the U.S. but no one is going to set up a diecast model factory in the U.S. as an answer to tariffs. Even if someone did, it wouldn’t workout. It wouldn’t be cheaper, and probably models wouldn’t be as good.

So what’s going to happen? Well, maybe indeed some people are going to be priced out of the hobby, and some shops will close down. And maybe that’s okay… Maybe it is just a needed adjustment. Maybe there are way too many models being produced and society actually doesn’t need that many tiny diecast airplanes around.

Supply and demand and natural balances.

Some of the smaller shops I do see going away, it’s a little saturated anyways. It’s not a get rich quick hobby, it’s a long game and only the ones who see and understand that will stick around.
I also agree that we have way too many model manufacturers right now. We have been groomed by all the new startups and honestly I just don’t see the need to carry 15 different brands in our store. And a good deal of the new ones aren’t giving what would be good wholesale discounts. We are good with what we are carrying. We are actually putting on sales to just thin the herd a bit and being very selective in what we are taking in.
You are also right in that once these new prices take effect, they aren’t coming down. I think it will certainly slow the hobby, ADI is doing a minimal increase, and I applaud that, but other distributors have already indicated that at least 10% will be applied on any shipments going forward. We have already planned on slowing down our order quantities as we think in general orders will slow down for the time being.

 

[Jazajia]

Some of the smaller shops I do see going away, it’s a little saturated anyways. It’s not a get rich quick hobby, it’s a long game and only the ones who see and understand that will stick around.
I also agree that we have way too many model manufacturers right now. We have been groomed by all the new startups and honestly I just don’t see the need to carry 15 different brands in our store. And a good deal of the new ones aren’t giving what would be good wholesale discounts. We are good with what we are carrying. We are actually putting on sales to just thin the herd a bit and being very selective in what we are taking in.
You are also right in that once these new prices take effect, they aren’t coming down. I think it will certainly slow the hobby, ADI is doing a minimal increase, and I applaud that, but other distributors have already indicated that at least 10% will be applied on any shipments going forward. We have already planned on slowing down our order quantities as we think in general orders will slow down for the time being.

Oh, it is saturated alright. For many years I was evenly distributing my orders among JetCollector, Waffle and EZtoys. Occasionally I went off the script to AdamJets, The Flying Mule and Airplane Replicas.

Then the revolution came . PandaFox with their absolute free shipping and constant coupons earned a good chunk of my loyalty for a while. Then Texan came, and he had the home-field advantage with me. Then with the creation of MAF, I tried out the Midwest Model Store a little bit. and then I met Dan from WCD in Dallas in 2023 and we sort of hit it off. I became almost exclusively loyal to WCD for a good year, but I still had to go to other shops for my Aeroclassics. In recent months I was getting my Aeroclassics from North Pacific Diecast, so for a few months before starting the shop all of my models were coming from Vancouver, kind of odd, but I liked dealing with them.

The point is that in recent years I started to struggle to stay loyal to any store. There were more stores that I wanted to give my business to than models that I needed to buy. Case in point, I enjoy chatting with you Scott, and wanted to give you my business as much as possible, but it wasn't always easy to do due to the reasons stated above, though I've been getting a few packages from you in recent months . Loving those AC blanks, they save me so much time with customs.

My comments on why I decided to consciously contribute to the retailer saturation issue will be reserved for another time .

 

[squatchys_diecast_hangar]

Oh, it is saturated alright. For many years I was evenly distributing my orders among JetCollector, Waffle and EZtoys. Occasionally I went off the script to AdamJets, The Flying Mule and Airplane Replicas.

Then the revolution came . PandaFox with their absolute free shipping and constant coupons earned a good chunk of my loyalty for a while. Then Texan came, and he had the home-field advantage with me. Then with the creation of MAF, I tried out the Midwest Model Store a little bit. and then I met Dan from WCD in Dallas in 2023 and we sort of hit it off. I became almost exclusively loyal to WCD for a good year, but I still had to go to other shops for my Aeroclassics. In recent months I was getting my Aeroclassics from North Pacific Diecast, so for a few months before starting the shop all of my models were coming from Vancouver, kind of odd, but I liked dealing with them.

The point is that in recent years I started to struggle to stay loyal to any store. There were more stores that I wanted to give my business to than models that I needed to buy. Case in point, I enjoy chatting with you Scott, and wanted to give you my business as much as possible, but it wasn't always easy to do due to the reasons stated above, though I've been getting a few packages from you in recent months . Loving those AC blanks, they save me so much time with customs.

My comments on why I decided to consciously contribute to the retailer saturation issue will be reserved for another time .

Along those lines, my point also weaves its way into there. I’ve been in retail for almost 35 years, while you think constant discount etc.. keeps customers, it does not. It’s a lure tactic, once these new prices discount or deal goes away, those customers for the most part will also go away. It’s not the mainstay of how a business will stay afloat. And with these price increases it will be hard to give those deals and or free shipping, and make any money doing so. I’ve had long exchanges with Nick early on about the constant discounts. He wasn’t making money, he just didn’t realize it. Especially when you have to report and pay taxes on all those earnings. It’s all about margins. We run just at or a hair above MAP, and know for a fact that’s not where we make our profit. We make our profit when we buy collections, it’s not on new releases, and why I say that a lot of these stores are going to go away with the increase that’s about to hit. When you offer free shipping that’s even a bigger hit, as you are paying fees to the shipping platform as well, therefore really eating into that small margin there is anyways.
So a lot of these little online shops don’t and won’t have the longevity of the bigger older stores. I know your friends with Nick, but you can already see it’s a fleeting thing with them. He’s in school, and that should be his priority, and you can see it in him not responding or slipping customer service. I’m not speaking for him but Dan, great guy, probably the same thing. It’s a cool little part time hobby selling deal, but not a forever thing. Which again pivots me to when these tariffs hit and folks see that they can’t give the discounts they have been, a lot will start to call it quits, as it doesn’t make sense to essentially make next to nothing when it all washes out. It’s simple economics, you don’t have to major in it. I’ve said it before, but the few that have had free shipping in place will most likely, and it’s already been seen, be a thing of the past.
My .02 worth.