Is our hobby getting more expensive or what?

The funniest thing about this is that both of you seem to have missed the fact that Athearn didn't buy Roundhouse...Horizon Hobby bought Athearn, and then bought Roundhouse. Horizon then essentially gave Athearn the Roundhouse product line. The only companies I know that Athearn actually bought was Globe (the original F-unit) and Rail Power Products. They also bought the rights to Highliner's F-unit (the Genesis F-unit) in paint...note that Highliner is still in business selling undec. F's.
So, if Athearn didn't buy Roundhouse...how did they "steal" anything when it was given to them?
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
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Well, not only am I building a home layout, I'm also a member of a club. The club has gone to using handlaid switches to keep costs down and because of possible DCC issues with short frogs. And on my home layout, I purchased (for $20) an old handlaid freight yard when we cut up our old club layout. However, I had to make some modifications to make it fit, and this required me to build a couple switches to match the yard to my layout. No, it's not one of my favorite parts of this hobby. But so what? A lot of people hate wiring (which I actually enjoy), and others hate benchwork, etc. But I'm willing to put up with the stuff I don't like in order to get the results I want.
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Thanks. It's nice to see some hard data. Especially when that data confirms my suspicions :-).
But the model manufacturers haven't yet achieved their goal of matching the rate of price increases in the medical/pharmaceutical industry :-).
Reply to
Larry Blanchard
"Looted" was the word he used - and Athearn isn't Athearn anymore, it's a name Horizon operates under.
Reply to
Steve Caple
Um, yes, but he also used "(I stole it)". Perhaps you did not read that far? Allow me to cut and paste the quote from David Nebenzahl's post on 1/2/06: "Actually, the word was a-looted (I stole it)."
Well, yeah. Athearn stopped being "Athearn" when Irv died and the family sold out. So far, I'm much more impressed with Athearn post Irv then I was before his death (and remember, I'm only basing that on what I've seen...and I'm 30.
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Ok, I know I'm quoting myself, but I just found my 2004 Walthers Catalog, the last one (IIRC) with Roundhouse Products in it. Here are the prices from 2004:
Roundhouse Freight Cars RTR: 50' Single Door Box - $19.98 50' Plug Door Box - $19.98 40' AAR Box - $18.50 54' FMC Covered Hopper - $19.98
Roundhouse Freight Car Kits: Most Kits - $9.98 36' Boxcar - $10.50 36' Reefer - $10.98 50' Hi-Cube - $8.98 50' Express Reefer - $12.98 40' Gondolas - $8.50 50' Mill Gondola - $8.98 34' 2-Bay Covered Hoppers - $10.98 38' Sand & Gravel Hopper - $13.50 50' FMC Covered Hopper - $12.50 26' Old Time Tanks - $10.98 30' & 50' Modern Tank - $10.98 Old Time Cabooses - $12.50 Steel Cabooses - $12.50 22' Ore Hoppers - $7.50 60' Bulkhead Flats - $9.98
Roundhouse Passenger Cars RTR: Pullman Palace Cars - $42.98
Roundhouse Passenger Car Kits: Pullman Palace Cars - $13.98 50' Overland Cars - $10.98 34' Overton Cars - $9.98 60' Harriman Style - $10.25
Roundhouse Locomotives RTR: HO 2-Truck Shay - $159.98 or $169.98 HOn3 2-Truck Shay - $159.98 HO 2-8-0 Old Timer - $159.98 HO 2-6-0 Old Timer (51" drivers) - $149.98
Roundhouse Locomotive Kits: Class B 2-Truck Shay - $79.98 Class C 3-Truck Shay - $89.98 0-6-0 - $65.00 0-6-0T - $45.00 4-4-2 Harriman - $79.98 4-4-2 Santa Fe Style - $95.00 4-4-2 PRR - $75.00 2-6-2 - $82.50 2-6-2 - J-28 - $85.00 4-6-0 PRR - $82.50 4-6-0 - $85.00 2-8-0 - $95.00 Climax 2-Truck $39.98 RS-3 - $75.00 Box Cab - $39.98
Now the ball is in your court, Big Rich... Where are the "doubling" in prices?
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Do you expect people that make model RR supplies (kits, RTR or whatever) should NOT be profit oriented?
I suspect that back in the 50's, companies like Mantua and Varney still had a profitable bottom line or else they couldn't have stayed in business.
This newsgroup forum is FREE as are a large amount of personal websites created by fellow model RRers, many of which contain lots of FREE "how-to" info.
And just what was that focus as it related to those people making a livig as model RR vendors and/or manufacturers?
There is NO free lunch.
Cheers, Bill S.
Reply to
Bill Sohl
You and I may not like it, but if the products are still being sold, it is the will of the marketplace. If the doubled prices result in no or minimal sales, then either the manufacturer will lower prices or stop production if the economics don't support it.
Cheers, Bill S,
Reply to
Bill Sohl
While the thought is nice, it's far better to actually deal with MSRP, and not sale prices from a mail order distributer, for a true barometer of costs. After all, the prices that Standard Hobby sets are their own...maybe they wanted a bigger piece of the pie and cut their discount? One just doesn't know. That's why one should only compare MSRP when doing these things...
Oh, man, I hope not. (sarcasm) Yeah, let's re-invent HO "toy trains".(/sarcasm)
"Wee fragile detail parts"? On an old Athearn model? You must be joking.
Oh, yeah, those wire handrails and stanchions were *real* breakable...
Um, all those "detail" parts on an old Athearn F7 were applied... The horns, the Blomberg hanger, and the brake cylinders. There was very little else.
Great. "Let's hear it for mediocrity!"
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Are you referring to the Modulars? They do look interesting but you are right... they also look expensive.
dlm
Reply to
Dan Merkel
Ok, but is the manufacturer's price a tad inflated on purpose to get the shop owner profit as well as the profit margin they seek?
Reply to
Big Rich Soprano
And the minute difference is? not much... Horizon = Athearn Horizon = MDC ------------------------ Athearn = MDC
As far as the general hobby public is concerned, there's not much difference...
Reply to
Big Rich Soprano
animal = dog animal = banana slug
dog = banana slug
Sorry, couldn't resist :-).
Reply to
Larry Blanchard
Do manufacturer's inflate their MSRP to more than they absolutely need to? Sure, very few don't. The trick is that you charge what the market will bear (basic economics). If sales are slumping, cut the price until they sell...but not so low that you don't make money. If your sales are screaming hot, raise the prices until sales cool off. Simple. But to answer your question, no, I don't think manufacturers inflate their price to help store owners. I think they do it to help themselves.
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Perhaps. But to accuse Athearn of "looting" Roundhouse is totally bogus. How can Athearn, who was given Roundhouse, be accused of stealing them? Heck, it wasn't even Athearn's idea to buy Roundhouse. Now, maybe if Horizon had stayed out and the owner of Roundhouse retired when he did, maybe Athearn would have bought him out...but they didn't.
Paul A. Cutler III ************* Weather Or No Go New Haven *************
Reply to
Pac Man
Bingo! One of the first things they teach you in MBA-land is to define your target market and price your product accordingly.
IOW, if you want to target an upscale market, you just put the same crap in an upscale package and double the price.
The upscale market will bear more, and consumers have been trained to equate price with quality.
Stevert
Reply to
Stevert
Yah i know...
Reply to
Big Rich Soprano
Yah i thought of that after i hit send...
Reply to
Big Rich Soprano
Good one...
One banana Two banana Three banana Four
Four bananas make a bunch and so do many more...
Reply to
Big Rich Soprano
Pac Man spake thus:
As the person who put in the reference to "looting" (it was just supposed to be a stupid little play on words), I can tell you I was not accusing anyone of "looting" anyone else. (Just the normal, everyday looting that's the essence of capitalism. But that's another story ...)
Reply to
David Nebenzahl

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