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My take on AeroTech

Has been taxing the last several weeks, but I have been lurking from time to time, though barely a fraction of what I used to do.

I see AeroTech is disintegrating... as predicted... (duh). Hoping somehow the pieces re-establish in a manner that benefits the hobby... local shops still see no product... and I have actually been around to some of the 'managers' to ask why. Main answer? (Rocket scientist jingle here)... cannot get them. They would carry if their normal suppliers could get them. All admit their long-time normal supplier(s) may not be chasing them anymore... they do not know.

Current online/mail/phone/long-distance/etcetera suppliers are still heavily on famine pricing. Can I blame the pricing? No. There is after all, a famine.

$30K starting bid for what remains is just that... a starting bid. I am sure Gary hopes that the majority of "fools rushing in" will stay away out of fear or well wishes for Gary to be able to pull out of this nose dive.... all systems are damaged, but it is unknown still if damage control can keep it in recovery... and ground zero seems to be homing in very fast. Even if RCS pulls this rabbit out of the hat (and that would be a miracle) there are many hilltops to cross on a shaky system with precious little lift left.

May God Bless, Gary and RCS. And if by some means another 'acquires' the remains, then even more and double the same to you also (you will need it).

This is because the company is in self-defeat mode. It must pose it self as a total loss to have "fire-sale" pricing, which means it will have nil or less chance of finding investors that have the means to really make it profitable quickly, and will have the added ?bonus? of messing with regulations, verifications, contracts, leases, and site controls and restraints. Gary has done a lot to keep it in Cedar City. Certainly not a dumb move; that one. Basically your only contenders are already in the buisiness, or in a business *very* similar, to even consider taking the controls in this death dive. Kamikazees will win no medals here.

Reply to
Duane Phillips
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Try Great Lakes Hobbies for good pricing on AT single use and reloadable F-G motors.

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Reply to
RayDunakin

Maybe these shops need to contact Aerotech directly.

Joe Burger at Aerotech just announced on ROL Forums that they have shipped

3,650 single use motors since Dec 1st, and will ship 1,500 more in the next two weeks.

Brian Elfert

Reply to
Brian Elfert

Since I can make about 500 a day they seem to be production and/or capital limited.

Reply to
Jerry Irvine

Jerry, He's refering to rocket motors, not pathological posts!

Reply to
Dave Grayvis

Could you, Aerotech, or anyone sell 500 SU motors per day if that many were produced per day?

Why build a production line to build 500 per day if you can only sell say

100 per day?

Aerotech production is not up to where it was pre-fire. I'd say they are only at 50% or less of plant capacity right now.

Brian Elfert

Reply to
Brian Elfert

Or maybe they're trying to buy on credit, when AT needs cash customers?

Reply to
RayDunakin

But then they choose to.

Despite some products having a constant flow.

A very long time ago I worked at a burger joint. I ran the grill. I found that by making components (patties) in (slight) anticipation of demand during rushes that the final assembly could be made from components coming off the grill moments after the order was placed and the time to deliver was shortened by MINUTES thus reducing lines, increasing customer satisfaction, and far more importantly, increasing flow rate.

It also reduces human stress since the production stages are hardly ever maxed instead of CONSTANTLY being stressed.

And that assumed a product that CANNOT be inventoried.

Motors have a 10 year+ shelf life.

How abouta 30 day safety stock?

Hey Gary, know what safety stock is?

:)

I is a college gradiate. And former fry cook :)

Jerry

Reply to
Jerry Irvine

Offsite storage.

Reply to
Jerry Irvine

It is failing. Trash it.

Reply to
Jerry Irvine

Said like a true Boeing ISO process convert..(;-)

Fred

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Reply to
W. E. Fred Wallace

I agree with Fred Wallace!!

Reply to
Jerry Irvine

Your information is defective. They are a Corporation with stock now.

Probably not but I BET Gary would be HAPPY to sell you stock at only $1000 a share.

Jerry

Reply to
Jerry Irvine

I agree on all of the above. And, only SELL what you already OWN.

Kooch

Reply to
Kevin Kuczek

Let's take bets on the NEXT BK, perhaps for RCS Corp this time.

Reply to
Jerry Irvine

It could be. Most hobby stores I know managers and owners of , like to buy with 90 - 120 days before they ever pay. then many pay in 120-145 days.

Quote from one local owner , "I'm not gonna tie my money up with toys on the shelf, I'd be a fool to do so. The distributor's money is on my shelf"

Big reason you don't see much product other then from great planes or horizon hobbies on shelves in bigger hobby stores.

Last I heard , great planes no longer carried AT as an active product line.

Tower (great planes' mail oder shop to compete with the hobby stores it sells to ) has some limited kit product left .

Art

Reply to
ArtU

It was an assumtion as I've never heard anyhing about them being traded. Is it Public stock or private stock?

Reply to
Chuck Rudy

Private.

Reply to
Jerry Irvine

I talked to a large hobby distributor once, at a major trade show, once he was under the influance.

he did not exactly say, but hinted to the following:

"I'm not going to tie my money up in that warehouse, the manufactures' money is tied up in that warehouse".

now to be exactly fair, all of business, is run this way. the hobby business is yet just another business guys.

yes, a business, out to make money for the stake holders.

Reply to
ArtU

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