| > I don't know if Walther's will be distributing or handling anything that
| > Horizon owns....
| They can't. Horizon will only sell to authorized Horizon dealers.
Of course if Walthers was to capitalize on their warehousing, shipping,
manufacturing and internet site, they could give up distributing and easily
swamp most any other internet shop. Become the Amazon dot com of trains.
Basically Horizon is trying to drive Walthers out of business. When
that is done (if possible) then Horizon can set any price they want. This
is very typical for other businesses and is called Capitalism and market
"something". We are just noticing it because it is affecting our trains.
In general, not even a monopolist can set "any price they want".
They will still face a downward sloping demand curve that is
likely to be pretty elastic. If they raise the price too much,
a bunch of people will switch to other hobbies. Also, I suspect
that they won't be able to keep competition out. If they raise
the price of a bluebox kit to $30.00, a lot of folks will switch
By the way, the last Accurail kit that I put together had screws
to hold the coupler pocket lids and trucks in place. Hopefully,
they have given up on that crap of cementing on coupler pocket
lids and using that worthless push pin to hold on the trucks.
Of course, I bought a package of #2 sheet metal screws for the
trucks on Accurail kits long ago.
in article email@example.com, Jon Miller at firstname.lastname@example.org
wrote on 12/4/04 11:48:
A friend of mine maintains that Horizon's actions are serving to challenge
the long-held dominance of Walthers in the model railroad distribution (as
opposed to retail) channel. In some ways this is good, because Walthers has
practically required shops to accept things on backorder (so I've heard).
Walthers allows you to cancel your backorders anytime before they are
ready to ship. They also have a liberal return policy.
Walthers was never the sole source for Most of the products they
carried. There was almost always another source for them.
To take Athearn as an example, for a store there were many
sources for the product including Athearn themselves.
With Horizon, it is their way or no way.
How is this an improvement?
Do you buy the 'Less Choice is Better' argument?
As I said before, the only outlets that will consistently support large
volume orders will be Walmart, K-Mart/Sears and maybe HobbyUSA but the
selection will be very narrow and limited to the stock on hand. No
special orders, no parts and the personal expertise of an ex fry chef
who can't find the key to the display case. Since Horizon doesn't seem
to want to venture into any other venue for marketing I think it's a bad
idea and a bad precedent. The whole idea to me, from the distribution
standpoint is just wrong. Although from a manufacturing standpoint
narrowing the product selection and mass marketing it is a good idea if
you can produce the volume to pull it off. Most people buying Christmas
tree sets (the bulk of the mass market sales) could care less what
components are included so long as there are enought pieces to put
together for the holidays. It will go back in the box and into the trash
in a few years.
On Tue, 07 Dec 2004 20:55:18 -0500, Cheery Littlebottom
The two hobby shops in my city (Winnipeg) that are "Horizon Authorized
Dealers" are not train shops.
Which means that if I want to buy any of horizon's exclusive products,
I either have to order from a store that deosn't care about trains, or
mail order from somewhere else.
What I want to do is buy from one of the local shops (4 of them to
choose from) that are focused on trains. Unfortunately, they are still
not certain if they can abide by Horizon's dealer policies (especially
How is this good for the hobby?
Kent Ashton | http://members.shaw.ca/kjashton -personal
According to http://www.horizonhobby.com/Horizon/BecomeDealer.aspx
account requirements there's a $500 minumum order. A small shop that
typically orders one or two items of low line merchandise on customer
request is indeed in trouble. However if the bulk of their business is
centered on the hobby side as opposed to the toy or beginner side is
isn't reasonable to hold that stock on the shelf.
While you were busy spounting off with Brian Ehni about "stupid Americans,"
MDC Roundhouse (not "RMC") was bought by Horizon Hobby on June 14 of this
year. Their operations were combined with Athearn, which Horizon Hobbies
bought earlier in the year. Horizon is the exclusive distributor of all
newly released MDC Roundhouse/Athearn products, so they are not in the 2005
The remaining MDC Roundhouse stock is here:
All remaining products will be disconuntinued by Walthers when sold out.
The Green Bay Route: http://www.greenbayroute.com /
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