Won't This Athearn Thing Be Good For The Hobby??

Jan 22, 2004 54 Replies

You probably know by now but Horizon acquired Athearn recently. They have stated Horizon will be the exclusive distributor of Athearn products. It will encourage other distributors who are going to lose Athearn products to look for other leading name brands to sell. Doesn't it seem logical that Accurail, Atlas, MDC, and a host of other leading brands will benefit from this? If other manufacturers are getting more orders from distributors to make up for the lack of Athearn and are increasing their output as a result is that not good?



If you have a hobby shop and want to sell Athearn get an account at Horizon. If you are a show vendor or a basement operator and they won't allow you to buy from them start handling another leading product line. The other distributors will be salivating to sell other product lines to them.



Will some dealers be hurt by this? Of course. I am not in favor of hurting businesses for the sake of hurting them but I think if you are in business you need to understand there are no guarantees. If you owned Horizon and bought Athearn wouldn't YOU do the same thing they are doing? (If you are a businessman you know the answer is yes). It makes perfect sense and could potentially be very good for them. Time will tell.



I don't know if Horizon sold Athearn products before this but if they did they were buying Athearn products for 50+10 off retail price and selling them for 40 off to retailers before they bought Athearn. Now they can still sell the product to retailers for 40 off and keep the difference of 50+10 and 40.



As a consumer don't panic and think you won't be able to get Athearn products anymore. Do you think Horizon bought Athearn to make it difficult to buy Athearn products? Of course not. They are going to push Athearn hard.



Sometimes business decisions like this are difficult to stomach. Guys here complain for one of two reasons: there is a potential financial loss because they are in the business (which is understandable but hey that is business - no guarantees. Stop, think, and change your strategy) or it is just a knee jerk emotional response by consumers who think they won't be getting the product anymore or will be paying more for it.



Like it or not it is going to happen. If you don't like it buy Horizon and change it to however you like.



Jim Stanton


And what do you do when the "rep(s)" drops by for a visit?

In the 6 or so years I have worked in the hobby store, Walthers has been in 3 times and I think Kalmbach once, Hobbystores once maybe.

Of course the Learning Curve rep used to be local, she would drop by every couple of months, she always brough goodies and the big can of popcorn for XMAS yum yum.

-Hudson

I'd tell you but then I'd have to killfile you.

Jim

Rathburne, I don't understand why you are so against this Horizon thing. It won't have any effect on mail order prices. Most of the large discount mail order dealers have hobby shops anyhow. Only the trunk dealers at show will be hurt. I don't see where that is a big problem. Maybe you are one of these dealers and that would explain your anger over this situation Jerry

I was in to my local B&M shop on Wednesday, he said the "Athearn" rep was in with his little camera and took some shots. He said it would be business as usual. Then he went on to say that Athearn was not a big seller at his shop as most of the customers wanted better quality. MDC, IHC, Con-Cor, Rivarossi and a couple of Canadian lines, Juneco and Branchline Trains.

He has some Athearn, but not more than any other line.

I think it's been shown that they won't sell to mail-order only places. But, for somebody like Trainworld, who has a big store and a 4-5 page ad in MR for their mail order sales, this won't be a problem.

Kennedy

Now THAT'S an interesting development!

Kennedy

It will be interesting to see if those other lines are being supplied by distributors other than Horizon, and whether that might squeeze out that other distributor. Even if that's not the case, carrying extra inventory is not a good thing, as inventory is really a liability if it isn't moved fast....

Kennedy

couple

sell to a mail order

However, there are some

store operation and

happens all the

didn't

Horizon

dealer

now means

existing

Athearn

all the

out of an

our

dollars a

guys.

us to

prices.

listed

listed under

storefront.

reputable. They

easily

official

Could it be because they are operating out of a real brick and mortar commercial building they could take pictures of, and not the basement of a house?

-- Len Head Rust Scraper KL&B Eastern Lines RR Museum

As someone who belongs to a model railroad club whose two major fund raisers per year are a pair of train shows, I will tell you that anything that permanently harms train shows is not good. Lots of groups, clubs, and other non-profit organizations depend on train shows to survive. Now, if other model companies follow Athearn/Horizon's lead, the dealers at shows will dry up and blow away, driving many of these clubs and groups into hard times. Horizon's policy will help Horizon, but not anyone else (which, in the long run, won't do them any good either).

Paul A. Cutler III

************* Weather Or No Go New Haven *************

If Horizon sells product that is readily availiable at a better price than another distributor then yes that distributor will feel the "squeeze". Horzon seems to have some pretty good controls on inventory levels. Typical availability runs about 87%. The limited run railroad items are of course another item. When sold that's it.

Dave

Very much False. Although they still do not carry detail parts they have added considerably to products carried. Horizon has been adding to it's railroad product lines since

1996. Horizon was initially primarily an R/C distributor. These days they carry a very wide selection of products including plastics, trains (n to G scales), rockets, crafts, activity kits, R/C boats, cars, and planes among other items. Train lines carried: Accurail, Athearn, Model Die Casting, Broadway Linited, Kato, Atlas, Blair Lines, Miniatronics, Life-Like, Miller Engineering, MRC, Aristo-Craft, Lionel, MTH, Bachmann, Boley, Bar Mills, Caboose Industries, Chooch, Life-Like, K-Line, McHenry, Micro-Scale, Classic Metal Works, Scalecoat, Floquil, Woodland Scenics, Nu-Comp Miniatures, JL Innovative Design, K-Line, and more train related products sucjh as Midwest, Plastruc, and others. They have excellent in stock percentages. Basically the premise that Horizon is an R/C Distributor is a misconception. They have been agressively expanding their product lines.

Dave

commercial building they could take pictures of, and not the basement of a house?< That would make it a warehouse and not a B&M which I take to mean a walk in store for customers.

Thank you for the constructive info Dave. Looks like they are expanding their MRR product line and that could pose more competition for Walthers. Is that a bad thing? Walthers after all has their own exclusive lines and is there a shortage of Cornerstone buildings on the market? Yes they eventually sell out and are out of stock but has there been a single Cornerstone building you haven't been able to get on the secondary market?

These guys are in business to make money. They do this by selling product. They want everyone to have their products so they will agressively market to their retailers. That will drive prices down. If enough hobby shops get calls from Horizon trying to sell them each a case of Athearn but those shops say they are buying a case of Accurail from Walthers instead what will Horizon do? Pack it up and go home? Of course not, they'll be offering specials on case lots of Athearn to compete.

Regarding the basement operators a lot of companies go into something new with all kinds of new policies and over time because of real business situations they get watered down. Do you really think that if some guy pulls up to Horizon in a truck with $20,000 in cash wanting to buy Athearn at dealer cost they'd turn him away? They can spout all the hobby shop only rhetoric they want but I'll bet at the end of the day money talks. And if you each send me $10.00 in cash until we reach $20,00 we can test this. (Just kidding! before someone accuses me of running a scam).

Jim

It doesn't matter if he or anyone else here doesn't like it. It's going to happen. People need to quit feeling like victims and start adapting to ever changing situations, especially when they have no control over what is changing! You adapt and change strategy. Complaining here will do nothing.

Jim

I have to agree with you Jim.

The simple solution is, if you personally don't like it, then don't support the company. Some people are acting as if Athearn is the only manufacturer out there.

Personally, I don't support them, but it has nothing to do with Horizon, it has everything to do with the fact that they supply NOTHING that will fit my

1880s themed layout.

Horizon's stated policy is that they require a retail, storefront operation. The business I am referring to does not have a retail, storefront operation, and openly admits it on their website.

Peter King in NY

And it's not germaine to this discussion, but the same exact phrasing is in the description of at least one other company selling custom wheels for cars and trucks. And the domain names are registered in the same town... Maybe the guys at Horizon are driving around on some new crunk dubs?

Jeff Sc. Spinner, Ga.

Actually, what I meant was that the LHS is adding other lines to his own inventory in the pursuit of getting Athearn from Horizon. Perhaps the LHS is already pretty much at his comfort level as far as inventory is concerned, but now has to pick up another line or two (from Horizon) in order to be able to get whatever Athearn he needs.

Granted, in some cases, this won't be a problem, if the new stuff sells. If it doesn't then what is the owner going to do?

The point is that a change like this could well be a major upheaval in the distribution process. What seems like one little change may well have a major ramification for other distributors who are also full-line, and perhaps might cause them to reevaluate their minimums, if they see Horizon cutting into their business. I was trying to say that the LHS may have to divert ordering some shared lines to Horizon, just to get Athearn. And that will hurt the other distributor, who may carry lines that Horizon doesn't. The equilibrium has been upset.

Kennedy

I'm not all that worried about Walthers as I am worried about the other distributors of Model RR stuff (if there are any). We hear a lot about Walthers and now Horizon. Are there anybody else out there who does a lot of distribution? What about on a smaller regional level? What about those guys?

Kennedy

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required