Friday, February 29, 2008

Favorite Hobby

My favorite hobby since childhood days remains scale modelling; making scale models of tanks, cars, and ships. Later on when the purse strings permitted, I branched out into radio control airplanes.

I was never a top notch modeller capable of producing show pieces that win competitions. Neither was I a proficient flyer of model planes; I guess my brain-to-hand coordination was just plain lousy. But these pursuits satisfied an urge inside me of things mechanical. I am always happy to see youngsters indulge in this healthy hobby rather than spend their time hanging around shopping complexes and video gaming centres.

It is a bit sad to see that the modelling hobby does not seem to have permeated a larger portion of youngsters and those young at heart. Part of the reason is probably the existence of other forms of entertainment such as video gaming and of course handphone texting. However I feel that the major reason is one of cost. Model kits and supplies remain among the highest in the region. When I used to reside in JB, I made regular trips to Singapore to get my modelling stuff. Even with present exchange rates, it is still worthwhile to buy them in Singapore. There is wide disparity between prices in Singapore and Malaysia. When I asked a Malaysian dealer why prices are so much higher here, he replied it was because of higher taxes. This is all BS to me! I did some checking and found that plastic scale model kits attract only 5% import duty and 10% sales tax; yet prices can often be 50-60% higher here. Radio control model kits and equipment are not taxed at all but prices are at least 50% higher than in Singapore. It is common practice for modellers in KL to make occasional trips to Singapore for all their supplies. Still worthwhile even after incurring the travel expenses and road tolls. They also get to see the latest kits and equipment there. Some even make online orders from established internet outlets like Tower Hobbies; I did and found their pricing and service second to none.

So what is happening here? It would seem that local dealers are making excessive profits and in the process discouraging new entrants to this absorbing hobby. Perhaps they need to make more to cover operating expenses due to lower sales volume. There are also not many dealers here who compete among themselves. It is certainly not due to higher rentals when compared to Singapore. When modelling supplies are priced high, less people are inclined to take up the hobby. With low volume import orders, local dealers cannot command bulk discounts from oversea distributors so they pass the higher cost to local customers. The vicious circle goes on; both dealers and hobbyists lose out. The government has done its part by levying zero or minimal taxes on the imported supplies.

Perhaps local dealers should try lowering prices to encourage loyal hobbyists to support them. It is indeed short sighted to make high profits per sale and end up with an overall low sales turnover. Far better to make less per item and make far more on higher sales volume.