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Hornby Hobbies Ltd ? 2013 Product Delays and Modelzone Announcement


Andy Y

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Some of that statement is quite amusing and leads to some further comments on their marketing - albeit not railway in this instance.  They currently have in the Airfix line a Lancaster, retailing at c£25-26, they also have a special pack Lancaster for the Battle of Britain Memorial flight which comes with paints plus a Hurricane and a Spitfire retailing at c.£33-35, plus another option, again including paints, for which you get the Lancaster plus a choice of a separately packaged Spitfire or Me 109 (normal retail well in excess of £5) for c.£30.  So who will buy a Lanc on its own for £25-26?

 Anyone who wants the new tooling of the Lanc, I imagine. The BBMF set contains the old model; the individual aircraft is the new one. Hence the price difference. Nothing strange or startling about it.

 

I don't know how well Hornby's business model is working these days. I was the assistant manager of the Aberdeen Modelzone store and we had vast quantities of Hornby stock that we couldn't shift because it was all sitting at RRP with no possibility of a discount. When we closed we still had 8-coupled tanks, 2-BILs, Castles, A4s, A3s (including Coronach!) and other highly desirable items sitting waiting to be sold. I have to wonder how well Hornby's web sales are doing on the basis of my experience with RRP stock...!

 

Regards,

Gavin

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I don't know how well Hornby's business model is working these days. I was the assistant manager of the Aberdeen Modelzone store and we had vast quantities of Hornby stock that we couldn't shift because it was all sitting at RRP with no possibility of a discount. When we closed we still had 8-coupled tanks, 2-BILs, Castles, A4s, A3s (including Coronach!) and other highly desirable items sitting waiting to be sold. I have to wonder how well Hornby's web sales are doing on the basis of my experience with RRP stock...!

 

 

Hornby's web sales don't have to be doing very well, at least in terms of volume. Like all the manufacturers, the primary purpose of their website is to act as an online catalogue. The majority of their customers will buy from their local shops or online box shifters. And Hornby won't discount their own prices on their website, as they don't want to undercut their own retail distribution market. So the volume of sales via Hornby's website will, inevitably, be low.

 

But that doesn't matter, for a number of reasons. The first is that any sales made via their own website are additional to those made via retail distribution channels. People will only buy direct if they can't find the same product elsewhere either more conveniently or more cheaply, so direct sales are not a replacement for retail sales. And, secondly, online sales are hugely more profitable for Hornby than they are for any other retailer, because the margin is based on Hornby's costs - that is, the manufacturing/importing cost - rather than the price they charge to retailers and wholesalers. When Hornby sells a model online for £100, they are getting all of the profit that would, in a normal retail sale, be split between them, the retailer and the wholesaler. And when you're making that kind of margin, you don't need very many sales for it to be worth it.  Hornby's online shop can tick over on just a fraction of the sales of retailers, and yet still be a significant source of income.

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  • 4 months later...

Have the Hornby products that were due on or after Monday 24 February 2014 arrived?

Don't know about other models in this slot, or other suppliers, but when enquiring about my pre-ordered NCB Sentinel, Hattons told me today that they expected a batch of Sentinels by the end of the week, deliveries to follow....

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During the last month, a "new" Hornby open wagon arrived - the "Fleetwood" wagon. I purchased one, and yesterday put it away in store in my PO Wagons box, only to find I already had one!. Strange thing is, same livery, same running number, same wheelbase, but a shorter body on the new one. Ooer........

 

Stewart

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During the last month, a "new" Hornby open wagon arrived - the "Fleetwood" wagon. I purchased one, and yesterday put it away in store in my PO Wagons box, only to find I already had one!. Strange thing is, same livery, same running number, same wheelbase, but a shorter body on the new one. Ooer........

 

Stewart

Maybe down to the successful pursuit of miniaturisation in the Far East?

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  • 3 weeks later...

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