Look what the creeps at UP did.

Aug 27, 2003 108 Replies

Go to the Kato website and look at their (cool) new F3 units. Note that anything UP and UP heritage--Rio Grande, Western Pacific is asterisked with "licensed UP product". THEN, note that UP and UP heritage models are $5 higher than BNSF or BNSF heritage roads. The greedy beancounters at UP are making Kato (read that YOU) PAY to model their locos.



Don't buy any UP stuff as long as they keep trying to scam us like this.


I sure am pleased that I'm already stocked up on UP stuff. There's no way I'm paying them a premium for my hobby.

I never have had a single piece of Union Pacific equipment in my "yard". And never will either.

Greedy bean counters?

Just wait until the greedy bean counters at the BNSF figure this out!

I thought that UP was only going to charge a small percentage. I guess Kato has to charge another small percent in order to cover the paperwork.... Donald

"Small" is in the eye of the beholder. I'm just glad my railroad's inheritor is an understanding appliance manufacturer (Rock Island is owned by Maytag).

Brian

I guess that means that their locomotive shop repairmen are very lonely then!

If the sale of UP decorated stuff slows way down what message will the greedy bean counters at BNSF figure out?

Paul

Very interesting. Kato is NOT listed on the UP website as being a licensed manufacturer:

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The "license fee" extorted by the UP is 1.5%, which Kato has essentially doubled by raising the price to its customers.

JR Hill

Maybe they are not. The additional fee is for the legal fund!

A - units A/B - units

$87.50 - UP logo stuff $174.98 $84.98 - !UP logo stuff $169.98 ----- ------- $2.52 $5.00

Still it seems enough to boycott the UP line to me.

Paul

1) The UP isn't forcing anyone to raise prices. It is charging a royalty. There is a big difference. The royalty in this case is much less than the $5 price difference. 2) UP isn't the only organization charging model railroad companies royalties. There are at least three others I can think of. They are for their size and sophistication actually late to the table.

Not trying to defend UP, merely throwing some facts into the mix. It's easy to get angry at someone raising prices, the question is "is it reasonable"? Is UP reasonable?

You can't print an NFL team's logo on a model freight car without paying a fee. Help me understand the difference.

I thought we already had this discussion. :(

My 1st F&C freight car is on it's way to me. Should I be scared? Now THAT's on topic.

Greg

But Woodland Scenics is, are they charging a royalty on trackside scenery as well?

Keith

Make friends in the hobby. Visit Garratt photos for the big steam lovers.

paying a fee. Help me understand the difference.< When is the last time you were at RR yards and saw boxcars or anything else with NFL emblems on them.

Woodland Scenics makes a line of dry transfers, remember?

Brian

It's kind of a scale model Vs a toy train thing to me. I see no difference between putting an NFL logo on a hat and having it on a toy train boxcar. It's the replication of a real thing and then having to pay extra for it that burns me.

UP is catching flack for being the 1st, but I tell you, ALL of the major players will be doing the same shortly, once they see UP turn a dime. It's corporate America at its capitalist best! Life, however, will still go on,and Kato will be selling locos, Athearn will be selling locos, and Rathy will still have a bug up his butt! Any questions?

KarlB

True.... true.... and TRUE!

No, they aren't.

Number of prototype railroad cars running around with UP logo: tens of thousands.

Number of prototype railroad cars running around with NFL logo: zero

Andy

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- Pre-Interstate Urban Archaeology

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I wonder what they'll do when UP takes a beating in the press, and from stockholders over this? They can't be making _anything_ off of this.

Andy

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- Pre-Interstate Urban Archaeology

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