Hornby Financial Update.

[adb968008]

17 minutes ago, No Decorum said:

The mind boggles.

“Why won’t the b**ch steam?”

“It’s a Caprotti, Alf. Sounds as if it’s working harder than it is. Give it more welly.”

“Shut up, you cheeky b**tard! I’ve been driving ingines since before you were born.”

(Under breath) “Needs more reg’lator, you daft old b*gger.” 

By the way, the interface I envisage would be specific to DCC. If increasing computing power and memory make it switchable to work with magic moonbeams, so much the better. NASA seems to be on the job.

And then he replies, “yes but it’s a diesel”.

Edited January 1, 2020 by adb968008

[adb968008]

30 minutes ago, Legend said:

I get that DCC can make things a whole lot more exciting . I hear the roar of a Sulzer 27 leaving the station or a Paxman HST at full scream and I occasionally waiver from my DC .  I have lots of systems and computers to play with in the day job, so when I come back to play trains I don’t want to worry about my CV29 or programming sound chips because frankly I’ve had enough of it during the day!  I suppose what I’m saying is that any new developments such as remote control should be backward compatible and please please.......be simple . 

something like...

 

1. Turn on the power button.

2. Wireless dhcp conection to your router / control board on the app.

3. green light on your control panel, with a battery level indicator (can be pseudo as coal or diesel you like).

4. slider to move forwards/backwards at speeds, sounds are automatically played according to your inputs, via an onboard speaker sent from your app, camera on your app sent from the loco.

5. options for lights/smoke etc.

6. low power indicator... move loco to shed, over a special piece of rail that wireless charges(same tech as your cordless tooth brush).

as loco is self contained onboard power.. it could run with your other DCC or DC or 3rd rail system.

cost.. Cheapest RC helicopters use similar tech cost £15 or less, with consoles & cameras about £40, with App multi-use software etc £60 on amazon, in somecases for a decade.

for the extra..

Goggles with modes to give overlay visions... night, snow, rain, sun, mountains, beach whatever you like, whatever epoch you like.

nothing new here, but I expect the usual, impossible, will cost £500, no market, too complicated, over my dead body, just wait till i get you home.. etc.

Edited January 1, 2020 by adb968008

[Watto1990]

If Apple and Google are struggling with AR glasses then I don’t expect Hornby to be the ones to nail it! I feel it’d be more likely for a Hornby app that uses your phone camera to overlay effects and animations over your real life train set, similar to Lego’s Hidden Side line: 

 

[34theletterbetweenB&D]

21 hours ago, Legend said:

I get that DCC can make things a whole lot more exciting . I hear the roar of a Sulzer 27 leaving the station or a Paxman HST at full scream and I occasionally waver from my DC .  I have lots of systems and computers to play with in the day job, so when I come back to play trains I don’t want to worry about my CV29 or programming sound chips because frankly I’ve had enough of it during the day!  I suppose what I’m saying is that any new developments such as remote control should be backward compatible and please please.......be simple . 

I am in full sympathy. What I really want - and not just for my model railway - is technology that is sufficiently advanced that it works 'like magic' (A.C.Clarke's third law). Why can't I just say 'give it the braking rate applicable to 1200 tons of unfitted mineral behind' rather than alter the CV4 value?  Why should I even have to say it? Why shouldn't all the performance characteristics be automatically set according to the type of stock and trainload the loco is coupling onto, and the loco capability?

 

However, as we are now it is a very modest learning curve for the benefits of DCC, and thereafter the magic just happens. I don't bother with sound, because the sound playing in my head for free is superior. But just being able to move and park locos independently on track with no need for isolating sections is 'magic' enough to satisfy, and there's a lot more than that 'simply happening' in DCC operation.

[Clearwater]

I’ve commented on another thread (the 2020 announcement one) about Hornby strategy.  For what it’s worth, these panacea solutions do not appeal to me and if I were a non-exec or senior manager, I’d be arguing strongly against them.  It strikes me that there is considerable investment required to get these solutions (be it dcc mk 2, VR etc) to work in the oo field.  To stay current, you’ll need to continue to invest.  Hornby simply don’t have the cash to invest at the scale required.
 

There’s a large barrier to entry for modellers to adopt a new technology - eg witness the debates people have on here at the cost of chipping their fleet never mind the compatibility issues of mixed fleets.  Is the technology right or will Hornby pick the Betamax system? Ie is there a market now for these products and at what scale? Is it big enough to pay back the investment required to develop the kit?  Given a minority still run three rail, a lot run conventional dc and hence dcc has not emerged dominant, I think the risk outweighs the potential reward.  
 

I might be persuaded that a modest (sub 250k) sum could be spent exploring such ideas but I’d rather let others take the strain.  If that £250k could be invested with lower risk on a new tooling or other extension of the existing brand, that would seem a better use of resources to me than a risky venture into a market they don’t appear to understand.  I’m not seeing anything in the background of the senior management team that suggests these are fields they understand.

 

I’m not arguing Hornby shouldn’t look for new things to do, markets to grow in.  I suspect that it has a reasonably stable (and large share) of its key markets across trains, plastic kits, slot cars etc but those markets are not fundamentally growing.  Even an increasing share and a marginally growing market isn’t going to solve their problems (say they have a 40% share and the market is growing at 2% pa, even moving to 50% share only adds £10m revenue and a million or so to the bottom line - back of envelope figures).  Hence I argued a wooden range could make sense (design skills, train brand, bigger market than trains/kits is wager).  I may be wrong but I’d reckon that would be a safer investment of £250k than some new, unproven technology.
 

In short, stick to your knitting.  Analyse what you’re good at, where your strengths are, how you can best utilise your scarce resources and brand to incrementally grow your revenue line.

[Pandora]

We may be  are looking at a curve in the road for the traditional  model railway industry  and  for similar hobbies where the participants gather their interest  soon after infancy,  curves in the road have led to the demise of the major computer companies in the 1990s,  giants such as Dec, Wang, etc, those companies thought the road ahead for their products was straight and self-steered into the ditch of oblivion. 

Hornby may be intending to link their products to tablets and phones, they may install cameras in their locomotives which broadcast  video to the smartphone or tablet,  that video may be augmented with virtual reality scenarios devised by Hornby programmers.  Perhaps that type of thinking is being hinted by Mr Kohler and Lyndon Davies in the recent Daily Telegraph article.

[adb968008]

1 hour ago, Clearwater said:

 Hence I argued a wooden range could make sense (design skills, train brand, bigger market than trains/kits is wager).  ..

Well making wooden trains really would be going to their 1920’s roots...

 

i’m not sure serious modellers want wooden trains

 

And in the kids space..

theres high street market stalls literally swamped with wooden models, that run onwooden tracks, where they stick together with magnets... i even saw these on a market stall in Poland.. 4 models for £10... uses same track gauge as the plastic TTT / Brio ones sold here.

I think this is highly competitive heres a 3 carriage train and loco shipped free fro. China for £3.06.. you can even get different colours..

https://www.ebay.co.uk/itm/Mini-Cartoon-Wooden-Train-Toys-Split-Desktop-Gifts-Favor-Kids-Children-3D-J/333463321399?hash=item4da3f67b37%3Am%3Am6W-2z-k-0DaG6CDXh28m2A&LH_BIN=1
 

kids dont care if its a Black 5 allocated to 10A, by the time they do, they will be into Railroad at the very least.

 

They could try a tie up with Mothercare.. their share-prices have much in common.

 

Quote

In short, stick to your knitting.  Analyse what you’re good at, where your strengths are,

Hornby has extensive experience in wood cutting ?

Perhaps they could offer a range of garden sheds suitable for modellers too.

Maybe also a limited edition of wooden spoons for critical forum posters.

Edited January 2, 2020 by adb968008

[Paddy]

Our grandson loves (obsessed) his wooden trains.  This is despite the fact that to me they look very crude and non prototypical.  Big Jigs are now releasing models with real liveries e.g. Black 5 in er... BR Black.  We got Teddy a load of this stuff for Christmas.  I think it could work if Hornby entered this market (in the UK) with their brand.  This stuff is not cheap either and could definitely do from some improved standards.

 

We are hoping Teddy will make the move from "toy" trains to "train set" in the years ahead and that Big Jigs will have played a part in this.  Sadly, he is already being seduced by the dark side of computer games. 

 

Kind regards

 

Paddy

[34theletterbetweenB&D]

1 hour ago, Clearwater said:

...In short, stick to your knitting...

You have put your finger right on the exact reason why the push along toy train market is something Hornby cannot contemplate. Whatever the material used, do Hornby have demonstrated expertise in getting simple, small kid's appeal toys manufactured in large volume at very low cost, promoted and sold to large scale retailers, and completely shipped to those retailers on a schedule to be ready for distribution in the two months before December 25th? No, they don't, and there are established competitors with all that know how and established manufacturing and retailer relationships, already occupying the territory.

 

They may only be simple cheaply manufactured push along toys for small children, but will come with their own critical success factors, and delivering the contracted large volume on price and on time are the big ones. What evidence do you propose to demonstrate that Hornby are good at that? (I have heard in fairly recent public broadcast two of Hornby's key customers telling Simon Kohler that on time delivery in sufficient volume is a major failing.)

[Clearwater]

2 hours ago, adb968008 said:

Well making wooden trains really would be going to their 1920’s roots...

 

i’m not sure serious modellers want wooden trains

 

And in the kids space..

theres high street market stalls literally swamped with wooden models, that run onwooden tracks, where they stick together with magnets... i even saw these on a market stall in Poland.. 4 models for £10... uses same track gauge as the plastic TTT / Brio ones sold here.

I think this is highly competitive heres a 3 carriage train and loco shipped free fro. China for £3.06.. you can even get different colours..

https://www.ebay.co.uk/itm/Mini-Cartoon-Wooden-Train-Toys-Split-Desktop-Gifts-Favor-Kids-Children-3D-J/333463321399?hash=item4da3f67b37%3Am%3Am6W-2z-k-0DaG6CDXh28m2A&LH_BIN=1
 

kids dont care if its a Black 5 allocated to 10A, by the time they do, they will be into Railroad at the very least.

 

They could try a tie up with Mothercare.. their share-prices have much in common.

 

Hornby has extensive experience in wood cutting ?

Perhaps they could offer a range of garden sheds suitable for modellers too.

Maybe also a limited edition of wooden spoons for critical forum posters.

 

You seem to be missing the point I’m making and being somewhat deliberately obtuse.  My point is about the brand and how you grow from that core and where there are addressable markets with proven sales.  Wooden rail was a suggestion based on that given I see it in nearly every shop I go to that sells toys.
 

Hornby is a shareholder owned business.  They care about one thing and one thing only - making money.  They don’t care what “serious modellers” want and what is a “serious modeller?” Is it one who collects? One who buys every release or the very small number who make their own exact prototype track to 18.83mm, carefully hand craft each loco so it is an exact representation of your Black 5 Allocated to 10A on the 9/12/1956?  If it was the latter, they’d move into that space.  They haven’t and (I’ll bet) won’t move into selling track parts and brass kits.

 

Hornby’s key is their portfolio of brands.  Search the annual reports - brand appears 48 times in the 2018 report.  It isn’t their experience in tooling be it for injection moulding or wooden items.  They’ve long since outsourced that to China/India etc.  It isn’t what you can buy comparable unbranded wooden products - I’m well aware what they cost from other sources.  You can make a similar point about almost anything manufactured and branded in the consumer space across any product.  Key brands in markets are able to exploit their brand to sell more.   FWIW, I though Hornby junior made sense and probably didn’t cost too much to get into.  I don’t think that was marketed at all at “serious modellers”.

 

Would a Hornby branded wooden set sell more in Mothercare than a non-branded set at a higher net margin than an unbranded one?  I suspect it would.  Would Hornby improve their sales if they could get into a number of High Street stores? I’m sure.  

 

 Moving into VR, wireless charging etc will cost them a packet.  I really don’t see the value in spending a packet on R&D against an uncertain market.  If they get it wrong and spend several million pounds on a technological punt, they will go bust, no question.

 

1 hour ago, 34theletterbetweenB&D said:

You have put your finger right on the exact reason why the push along toy train market is something Hornby cannot contemplate. Whatever the material used, do Hornby have demonstrated expertise in getting simple, small kid's appeal toys manufactured in large volume at very low cost, promoted and sold to large scale retailers, and completely shipped to those retailers on a schedule to be ready for distribution in the two months before December 25th? No, they don't, and there are established competitors with all that know how and established manufacturing and retailer relationships, already occupying the territory.

 

They may only be simple cheaply manufactured push along toys for small children, but will come with their own critical success factors, and delivering the contracted large volume on price and on time are the big ones. What evidence do you propose to demonstrate that Hornby are good at that? (I have heard in fairly recent public broadcast two of Hornby's key customers telling Simon Kohler that on time delivery in sufficient volume is a major failing.)

 

The question is what is their knitting?  I’m not sure they’re not as bad as you think on some key items - possibly they delay items like the 61xx to get the trainset type stuff out. Eg when did their Hogwarts express set arrive? (Albeit I’d be surprised if that was a big seller given Harry Potter is a few years old and wouldn’t have been my choice but lego still seem to sell that brand so perhaps its a strong market). I’m also struggling to see the conceptual difference between the design. Manufacture, distribution and marketing die cast cars of corgi, Oxford Etc and those of other other products.

 

Merely because others are active in a market doesn’t mean you shouldn’t look to enter it.  You need to look at the overall market size, what you’d need to do to win, what it costs you to enter the market, how it fits with your other activities etc.  What else could their reps cross sell?   I’m afraid I don’t set much store by anecdotes whether broadcast or not.  Christine Keeler comes to mind.   

 

Maybe I’m wrong, but I think that looking where else you can use your brand rather than moving into trying to sell new technology to existing customers (I don’t think either of you disagree that tweaking the existing range of oo items is going to solve their underlying problems)..  If you want a VR train experience, buy Train Sim World.  It’s great.  Does pretty much everything described above and is an excellent product.   Maybe push along wooden trains won’t work - I’m not close enough to the business to know but when I see the likes of  Tesco, John Lewis etc selling them, I wonder whether the biggest train brand shouldn’t look at it?    

 

There’s lots of things I’d want to explore if I was advising Hornby.  I’d be thinking pretty laterally.  I’d want to know what sells in the NRM and heritage rail shops average visitor spend and the total footfalls (also aviation and motor related museums.   I’d want to know what margins are being achieved on those items and the costs of investment in new products that meet those markets and start to look how those investments stack up against other ideas such as the tech ideas outlined above.  As noted, I’m sceptical that pursuing some form of VR / iPad type integration is going to be anything more of a gimmick than live steam was a few years ago (even though I still hanker for one of those sets).  However, stasis is not an option.  The strategy should address a) making what they do today profitable b) building on the brand to grow net revenues.   In both cases, they’ve got to look at risk - they’ve simply not got the financial headroom to make a large bet and get it wrong.

 

 

 

Edited January 2, 2020 by Clearwater
Clarity

[adb968008]

I wont quote the above as its quite long..

 

but broadly we agree, Hornby need to venture into some kind of new territory if they are to grow.
 

I’m not sure wooden trains because they are cheap and everyone is doing them is the right idea. But I do know licensing and software maintenance is a constant and recurring revenue stream that carries low cost, and scales vastly very quickly with high margins and strong ROI to the right product... the secret is in the software.. not the hardware.

 

Developing some IP of their own, setting “Hornby standard” and making it by volume low enough in itself to be both attractive to other competitors to licence, and detract from developing their own IP, could be very lucrative...indeed even open-sourcing some aspects may carry dividends too.

 

Those DCC sound chips cost pennies to make.. the licensing part i’m sure is the secret sauce to that outmoded tool being such a success decades after it was made.. But thats also why DCC Sound has not achieved the potential it could have... if they’d virtually given the chips away.. DC would have been dead decades ago and the conversation today would be very different, instead its still sharing a market and somewhat constraining manufacturers rtr sales.. each £100 spent on a chip is a revenue loss to a manufacturers own range, so they have a vested interest in replacing the technology... TTS being a great example.... now just take it to another level.
 

 

 

 

 

Edited January 2, 2020 by adb968008

[JohnR]

Steve Flint tweeted out a teaser from the announcement earlier today.

 

 

Its Simon Kohler saying we need to think outside the box....

[Bartb]

Nice if Hornby went into O gauge as this seems to be the new market at the moment

[sjp23480]

Based on some of the comments in the recent Hornby "documentaries" could this be their next big thing?

 

 

Edited January 2, 2020 by sjp23480
Typo correction

[AY Mod]

Originally the announcements were embargoed until 10.00 on Monday, this has been brought forward to 09.00.

 

For announcement junkies to 'mainline' the quickest hit from the news I have prepared the topics for the off so you don't have to fumble through any complex navigation - if you want to know everything as quickly as possible RMweb is the place to come.

 

The main topic will start with the newsy pieces followed by all the new livery items of existing models. There will be a separate topic for the  ... um ... other announcement. 

[DRS Crewe On A Mission]

22 minutes ago, AY Mod said:

Originally the announcements were embargoed until 10.00 on Monday, this has been brought forward to 09.00.

 

For announcement junkies to 'mainline' the quickest hit from the news I have prepared the topics for the off so you don't have to fumble through any complex navigation - if you want to know everything as quickly as possible RMweb is the place to come.

 

The main topic will start with the newsy pieces followed by all the new livery items of existing models. There will be a separate topic for the  ... um ... other announcement. 

 

Thanks for letting us know Andy. 

 

I always enjoy looking through the new announcements on RMWeb. 

 

Thoroughly looking forward to Monday because I think that we will be in for a treat. 

[JohnR]

Thanks Andy - hope the server can cope!

[Clearwater]

@adb968008

Thanks - I get the point you’re making about ongoing licence fees though I’m not sure the aggregate model rail market offers to same scaleability possibilities to amortise fixed investment cost as some other types of software but agree it’s a volume game..  It’s not a market I’m familiar with and hence I’m probably more nervous / risk averse to it.  I’m intrigued to see what they’re proposing and I hope whatever they’re announcing has a limited downside exposure for them.  I can see how you can lose your shirt quickly and rack up considerable cost if you’re not quite on the money.   I’d also need to be convinced how a move into VR (or whatever it is) supports sales of the core model rail business.  I’m also wary of oldish people, and I’d include myself in that, of thinking this is what will sell “to the kids.”  As an aside, I’d note that last year they invested £500k in computer software (accounts note 9).

 

Of the things brought to market, I agree TTS has been a real success.  My kids love the sound and pressing the buttons.  Personally, I find it a bit wearing.  Development of that, perhaps as you suggest to be wireless based to run off either DC or DCC and within a tender/wagon/coach, might be a neat incremental development but it’s not revolutionary and arguably BAU.  I also think making them easily programmable to include your own sounds would make sense (I’m aware that this is not rocket science to do anyway but you need a bit of kit.)

[GWR-fan]

As regards technology a couple of years ago when Bachmann released a proprietary bluetooth method of train control I thought that DCC,  like the Sony Beta VCR,  would die out.  No longer would we need a command control centre.  All we needed was a phone and a fixed power supply to the track.  Locomotives would come with either a bluetooth enabled decoder or for pre-fitted DCC chips a piggyback bluetooth device would be connected by the consumer.  All control would be from our mobile phone.  What happened to that method of control?  From memory the brandname was something like "Bluestreak".

 

Hornby's current direction seems to be towards either corporate branding or aimed at a younger aged "modeller".  Like others I prefer that Hornby just keeps on "knitting".  Why reinvent the wheel or change tact.  I had digital sound control in multiple locomotives in a largescale garden setting for many years and the joy for me was when I muted the sound.  The sound of multiple locomotives pumping out many watts of power was like a swarm of mosquitoes buzzing in my ears.  The joy experienced when turning off the sound was akin to taking a very strong sedative.   I consider myself a "coal burner".  I want technological simplicity,  basic analogue control.  Every locomotive that I purchase with a DCC chip has the decoder removed or if sound fitted the loco is onsold.  I have had access to dozens and dozens of decoder fitted models and yet for me simple analogue control always wins out.    DCC is convenient for a multiple loco setup,  but personally,  has not convinced me after many years that this is the path I wish to travel.

 

It is not that Hornby cannot continue its current course,  but a return to profitability requires a new management strategy which Hornby has embarked upon with Lynton Davies.  What Hornby needed was a businessman who knew his business,  not an executive in a three-piece suit at a board table.  When one looks back at the 2012 Olympics shambles is it no wonder that Hornby's bottom line took a crash dive.  Subsequent firesales and direct marketing further reduced profitability.  Was the decline in mainstreet stores a result of a declining economy, online sales or manufacturer competition?  When Hornby could not fulfil stores' orders the company was direct marketing to customers stock unable to supply to stores,  at full market value.  I am still amazed that the Hornby board did not foresee the folly of this marketing when it was obvious the impact that it had on stores.  To be a success Hornby needs to break out of the toy trainset manufacturer mould and the "if we build it they will buy it" philosophy.

 

Lastly, pricing.  Previous firesales and the current Rails and Model Railways Direct sales exemplifies what our models are really worth.  Yes, some stock is older stock but in many cases the items are recently announced models and yet the pricing is well below the nominal 15% that manufacturers place on new sales.  Are we being price gouged simply because it is assumed that we can afford it?  Wholesale is priced up to enable stores to recoup costs plus a margin for profit,  However, in this current sale and the previous firesales, prices are being slashed.  One store that was selling a Bachmann model locomotive "onsale" for GBP58.00 earlier this year,  is currently selling the same unsold stock on a "bargain" price of GBP129.99.  If there is a profit margin in a sale then how much profit is there in full retail?  Stores are not charities and recouping costs and profitability obviously ensures that the store is viable,  but how much is too much?  No matter where Hornby sources its current production retail prices continue to soar, not just for locomotives but rolling stock as well.  A typical coach downunder now sells for over $100.00 Aud.  How is this sustainable.  A train pack that sells in the UK for under GBP300.00 is retailed downunder for close to $900.00.   When I look at local prices I wonder how the stores continue to trade given the competition from overseas.  It might seem a backwards step to profitability but perhaps lowering prices may bring Hornby back to profitability.  

[RAF96]

In Cyprus it was a given that if something did not sell at a sensible price then you took it off market for a week or few then put it on resale at previous price plus 10%, ... repeat until sold. It seemed to work as folk would buy at silly prices - obviously the same folk who womble around eBay with silly wads of cash.

[woodenhead]

2 hours ago, AY Mod said:

 There will be a separate topic for the  ... um ... other announcement. 

I had heard about Hornby taking over the Northern franchise, but they really need to get opening doors on the Limby 156 for this to work.

[atom3624]

If that VR is used to help model / design, then eventually to program perhaps an entire period of time's operation - say 19:00-21:00 - then I like it.

 

If it is being mooted as an alternative to actual model railways, then I'm not a fan.

 

Al.

[eldomtom2]

I've got it! The plan is for a nominally free program like the old Virtual Railway (possibly with VR support) that you add stock and scenery to by entering codes acquired by purchasing the real item, like the "toys-to-life" genre used by games like Skylanders and Disney Infinity. This is almost completely dead in the main game market, but railway enthusiasts have shown themselves more than willing to accept practices and prices that the wider software and game community would not tolerate.  From Hornby's perspective, this prevents the new thing from cannabilizing their primary range and discourages buying second-hand.

[Ron Ron Ron]

1 hour ago, GWR-fan said:

As regards technology a couple of years ago when Bachmann released a proprietary bluetooth method of train control I thought that DCC,  like the Sony Beta VCR,  would die out.  No longer would we need a command control centre.  All we needed was a phone and a fixed power supply to the track. 

Locomotives would come with either a bluetooth enabled decoder or for pre-fitted DCC chips a piggyback bluetooth device would be connected by the consumer.  All control would be from our mobile phone. 

What happened to that method of control?  From memory the brandname was something like "Bluestreak".......

 

That Bluetooth wireless control system is a development by BlueRail Trains.

It was initially launched in a special range of pre-fitted locos by Bachmann and later on BlueRail Trains started selling the decoder boards separately (for self fitting in any model) both directly and through dealers.

The system is now being re-launched in it’s 2nd generation and is now fully compatible with DCC.

Tam Valley Depot are producing the chips that can be added to existing DCC decoders and a well known DCC decoder manufacturer is bringing out a range of DCC sound decoders with the Bluetooth chips already embedded on them. Just plug in and run the trains.

This system provides full DCC control of trains, including sound (if wanted) without any requirement to purchase or use a DCC control system.

The control system is a free software app running on a smartphone or iPad, communicating directly to each train by Bluetooth wireless.

Power is supplied by a fixed voltage DC or DCC current to the track, or by on-board battery if desired (extra piece of on-board kit required).

 

 

Ron

[mdvle]

1 hour ago, GWR-fan said:

As regards technology a couple of years ago when Bachmann released a proprietary bluetooth method of train control I thought that DCC,  like the Sony Beta VCR,  would die out.  No longer would we need a command control centre.  All we needed was a phone and a fixed power supply to the track.  Locomotives would come with either a bluetooth enabled decoder or for pre-fitted DCC chips a piggyback bluetooth device would be connected by the consumer.  All control would be from our mobile phone.  What happened to that method of control?  From memory the brandname was something like "Bluestreak".

 

BlueRail - it is still around, Bachmann still sells a small number of trains with it, and it is available as boards to put into your own equipment.  Being Bluetooth meant it avoided a lot of the problems with WiFi, but it really hasn't caught on in part because (whether it isn't an open standard or other reasons) it doesn't have the required features.  It doesn't do sound in loco, it doesn't have non-app based controllers(*), and given that DCC is much more established in North America than the UK it has struggled against an extensive installed base.  Sort of like attempts at dead rail, a great idea in theory but not good enough to overturn the established system.

 

http://bluerailtrains.com/

 

* - on of the hottest controllers amongst diesel operators is this replica of a real control stand - https://www.iascaled.com/store/ModelRailroad/ProtoThrottle although given it's price it's still a niche product.

 

1 hour ago, GWR-fan said:

Lastly, pricing.  Previous firesales and the current Rails and Model Railways Direct sales exemplifies what our models are really worth.  Yes, some stock is older stock but in many cases the items are recently announced models and yet the pricing is well below the nominal 15% that manufacturers place on new sales.  Are we being price gouged simply because it is assumed that we can afford it?  Wholesale is priced up to enable stores to recoup costs plus a margin for profit,  However, in this current sale and the previous firesales, prices are being slashed.  One store that was selling a Bachmann model locomotive "onsale" for GBP58.00 earlier this year,  is currently selling the same unsold stock on a "bargain" price of GBP129.99.  If there is a profit margin in a sale then how much profit is there in full retail?  Stores are not charities and recouping costs and profitability obviously ensures that the store is viable,  but how much is too much?  No matter where Hornby sources its current production retail prices continue to soar, not just for locomotives but rolling stock as well.

 

Selling at a loss with the hope of making it up on volume doesn't really work.

 

One of the keys to surviving, something Hornby an Bachmann are likely having to learn, is that you can't carry large amounts of inventory in a hobby world where you are getting 20 to 30 new tooled items a year.  There is simply too much new stuff grabbing the attention and £'s on an almost monthly basis for consumers to be interested in several hundred items stored in a warehouse.  Thus the need to clear those items out, sometimes at below cost, because a slight loss is better than paying the monthly costs to store the item in a warehouse and the interest costs on the tied up capital.