The Bachmann comment was based in their own website re dummy locos costing approx the same as powered with a lower margin as they cannot command anywhere near the same price, so there IS price pressure on them. Also many n gauge promised Dapol models for 2018 have been shelved or delayed - again according to their own website.
Would love to go to O gauge like my brother in law but space really does not allow.
Entry cost for modern new models is prohibitive for younger modellers, so scouring the s/h market is a good way to get going, but even s/h prices seem to be escalating as good quality later n gauge stock is at a premium as the new prices rocket.
Many higher end model manufacturers with niche market intentions will be able to enter the market as their set-up fees are not really on-par with high volume producers as they do not invest in hard injection mould tooling or the number of assemblers etc required for these quantities. One SHOULD assume that volume=cheapness, but with the rather limited numbers of UK sales, no real economy of scale is possible and costs are pro-rata.
Chinese labour costs are still lower than UK, but add shipping and duty and batch production (rather than continuous) and the limited headroom for retail price and it is these bigger manufacturers that get squeezed. UK assembly MAY be an option and would love to see this done again. Anyone know the real relative costs with UK NI, pension contributions, maternity/paternity leave, paid holidays and business rates plus corporation tax, vs a Chinese manufacturer with few (if any) of these overheads ?
3D printing is a good way to go for low volume but build costs are much higher than injection moulding (IM) so fills a great gap in the rare model market, but will never match IM at maybe 10p a shot for a bare passenger coach body (without tooling amortisation). How does this get to be £30-ish finished?
I see a comment or two re-kit versions and do think this could be a way to go. With maybe a ready built and tested loco rolling chassis a painted bodyshell and a set of detailing parts for the modeller to fit and decals to apply, a fair amount of the labour cost could be taken out - though how this would relate to the bottom line is hard to tell as manufacturers do need to keep a decent margin to survive.
Electronics at the level of DCC technology is dirt cheap yet the added cost is ridiculously high. These added costs push loco prices sky high and may actually detract from sales. With a smaller increment over DC they might actually shift MORE units as n gauge modellers might actually be able to afford to upgrade while at the current price point they cannot. Similarly for newcomers with little cash to spend - how can they get a toehold in the n gauge scene at the current prices?
Love some of the new UK outline models, but the prices and durability leave a lot to be desired.
Been buying some US outline models and Kato, Model Power etc are doing some very nice steam era models (and have done for a while) at historically reasonable prices, but Bachmann US prices are also pretty high now.
I guess we are paying for the sophistication of the newer models and possibly the lower uptake of the game by the younger generation, so lower overall volumes?
A big issue for the hobby and manufacturers - just hope we can "square the circle" to keep UK n gauge vibrant and viable. Maybe need to up my modelling skills and do some more and better scratch building where the labour time is my own and both "free" and satisfying?
Tough Times for Model Railway Manufacturers
in rogerfastlane's Blog
A blog by rogerfastlane in RMweb Blogs
Posted
The Bachmann comment was based in their own website re dummy locos costing approx the same as powered with a lower margin as they cannot command anywhere near the same price, so there IS price pressure on them. Also many n gauge promised Dapol models for 2018 have been shelved or delayed - again according to their own website.
Would love to go to O gauge like my brother in law but space really does not allow.
Entry cost for modern new models is prohibitive for younger modellers, so scouring the s/h market is a good way to get going, but even s/h prices seem to be escalating as good quality later n gauge stock is at a premium as the new prices rocket.
Many higher end model manufacturers with niche market intentions will be able to enter the market as their set-up fees are not really on-par with high volume producers as they do not invest in hard injection mould tooling or the number of assemblers etc required for these quantities. One SHOULD assume that volume=cheapness, but with the rather limited numbers of UK sales, no real economy of scale is possible and costs are pro-rata.
Chinese labour costs are still lower than UK, but add shipping and duty and batch production (rather than continuous) and the limited headroom for retail price and it is these bigger manufacturers that get squeezed. UK assembly MAY be an option and would love to see this done again. Anyone know the real relative costs with UK NI, pension contributions, maternity/paternity leave, paid holidays and business rates plus corporation tax, vs a Chinese manufacturer with few (if any) of these overheads ?
3D printing is a good way to go for low volume but build costs are much higher than injection moulding (IM) so fills a great gap in the rare model market, but will never match IM at maybe 10p a shot for a bare passenger coach body (without tooling amortisation). How does this get to be £30-ish finished?
I see a comment or two re-kit versions and do think this could be a way to go. With maybe a ready built and tested loco rolling chassis a painted bodyshell and a set of detailing parts for the modeller to fit and decals to apply, a fair amount of the labour cost could be taken out - though how this would relate to the bottom line is hard to tell as manufacturers do need to keep a decent margin to survive.
Electronics at the level of DCC technology is dirt cheap yet the added cost is ridiculously high. These added costs push loco prices sky high and may actually detract from sales. With a smaller increment over DC they might actually shift MORE units as n gauge modellers might actually be able to afford to upgrade while at the current price point they cannot. Similarly for newcomers with little cash to spend - how can they get a toehold in the n gauge scene at the current prices?
Love some of the new UK outline models, but the prices and durability leave a lot to be desired.
Been buying some US outline models and Kato, Model Power etc are doing some very nice steam era models (and have done for a while) at historically reasonable prices, but Bachmann US prices are also pretty high now.
I guess we are paying for the sophistication of the newer models and possibly the lower uptake of the game by the younger generation, so lower overall volumes?
A big issue for the hobby and manufacturers - just hope we can "square the circle" to keep UK n gauge vibrant and viable. Maybe need to up my modelling skills and do some more and better scratch building where the labour time is my own and both "free" and satisfying?