Hornby price increases

Hornby have just announced price increases from 1st September across its
Hornby, Scalextric and Airfix brands.
The majority od increases will be in the range 5 - 7½%, but certain products
may be slightly higher. They claim to have had no option and the increases
reflect global increases in raw materuals & general production costs.
This is the second price increase Hornby have announced since their original
2008 catalogue and price list were issued in January.
Reply to
John Turner
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If the pound keeps failing against world currencies it's going to make bother Hornby dash for china rather foolish...
Reply to
Jerry
John Turner said the following on 16/08/2008 10:17:
I can certainly understand the raw materials issue - I just wish some of our customers would :-)
Reply to
Paul Boyd
"Paul Boyd" wrote
Absolutely BUT, is it wise to increase prices TWICE inside nine months at a time when retail sales are in fairly significant decline?
John.
Reply to
John Turner
There may be a glimmer of light at the end of the tunnel, at least for non-oil products - automotive batteries have dropped slightly this week after monthy rises of the last two years.
Cheers Richard
Reply to
beamendsltd
"beamendsltd" wrote
Crude oil is also 25% off its peak price, which also makes one question the wisdom of Hornby's latest price increase.
John.
Reply to
John Turner
Yes but still 25% above the start of year price (it was IIRC below the $100 mark at the end of last year), I fear that this has more to do with falling sales and Hornby spending money earlier this year on 'non care' acquisitions - has Bachmann put their prices up?
Reply to
Jerry
China is going to cost them an extra =A32,000,000 this year !
If Hornby did go crash who do you think would pick up the pieces ?
Reply to
Dragon Heart
I should think it's more to do with increasing costs in China. I've no handy reference, but I've read on the BBC News Business section that maufacturing costs in China are ineveitably rising (I expect the workers rather fancy getting paid these days, and the H&S virus seems to have started arriving) causing people to look at India again. The circle turns I suppose!
I'd expect Hornby to be very aware of the consequences of price rises in what I expect is a very price sensitve market sector.
Cheers Richard
Reply to
beamendsltd
"Dragon Heart" wrote
I can't see that happening, or at least not in the immediate term, but if it did then I suspect Bachmann would have enough global resources to swallow them up and not notice the cash drain.
John.
Reply to
John Turner
I thought that Bachmann also had many fingers in China though, the point (that you snipped) was about the value of the GBP against other currencies, Bachmann is in the same boat as Hornby in this respect surely... Has Hornby kept any UK based injection moulding facilities or have they ripped it all out for extra warehousing space?
Reply to
Jerry
"Jerry" wrote
Bachmann is part of Hong Kong-based Kader Industries, of which model railways is but a small part. They also own their own factories, unlike Hornby.
John.
Reply to
John Turner
Seems Kader havent the capacity for Bachmann UK models without considering any more. However Bachmann could certainly benefit from some decent marketing staff so they might like to take over Hornby ? :-) Cheers, Simon
Reply to
simon
The Chinese have serious economic problems of their own. There are forecast to be hunger riots there before the end of this year.
(kim)
Reply to
kim
China received its final shipment of food aid from the UN back in April ? They have used this food aid to support food-for-work schemes for the past 25 years. Their problem, like ours, is the growing gap between rich and poor which I assume they will deal with in their normal 'efficient' manner.
Chris
Reply to
Dragon Heart

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