Hello all
I have been reading this forum for many many years, but now feel compelled to make my first post. For better for worse, probably my last.
I have been following this thread with much interest and thought I would share a few observations and thoughts.
Several pages of this forum are dedicated to the financial performance of Hornby over a great many years, and one can clearly see the considerable troubles they have suffered for a prolonged period. I would suggest that if this was any other company, it would have disappeared into extinction many years ago. But it hasn't has it. Largely due to the personal association and affection many people in the UK and around the world have for it. The support it has enjoyed from many places and factions is unprecedented in my experience. Even today, I cannot see anyway that it will ever pay its debts back, but it still carries on trying to reimburse those bodies or persons who have kept the faith.
Throughout these pages of financial debate, it is clear the passion and affection we all have for the brand, and it is nice to read so many posts wishing Hornby well in the run up to and immediate period and after a financial statement is made from Margate. While not everyone extends their encouragement, I would say that the majority of people on the forum wish them well and come up with all sorts of ideas to try and help them reach good financial health.
I shall note here, that while many wish Hornby their best wishes, they also cheer the endless march of new entrants to the market, none of whom have the same cost base, railways may not be there main business or source of income. They can pick off a few items here and there while perhaps only incorporating two margins ( factory and themselves) into the final price. Hornby, and to some extent Farish, Peco and Bachmann are charged with funding a complete system for the newcomer and the enthusiast, they have at least 4 margins in their product, factory, themselves, an overseas distributor, and a store. ….. always seems to be overlooked when discussing price. The large manufacturers with their sales reps, their service departments, their consumer services help lines, their sponsorship of major industry events, their marketing teams who keep the hobby in the public psyche are never compared fairly in my own very humble opinion.
Many in the industry felt the great benefit of Great Model Railway challenge program, some thought that model railways on primetime TV was a bad thing. But who helped make that happen? The established manufacturers including Hornby and Gaugemaster I recall from the end credits.
One must surely appreciate that the industry has changed around Hornby these last 20 or so years, with the endless march of the internet, the loss of high street stores such as Woolworths, TRU, Beatties, and various department stores. Worse than that, Hornby also finds itself in competition with its own customers, who have built up a good business selling Hornby items over many years and are now using the fruit of those labours against and in competition to Hornby. Put yourself in their shoes just for one moment. Should Hornby just roll over and quietly slip away under palliative care, or should they act to protect themselves?
So, Hornby have made a change to their loss-making broken business model left over from at least 20 years ago. This has been decided at the highest levels, almost certainly at board level of their largest stakeholder, Phoenix (essentially their owner I guess) . Hornby have made this change to try and ensure their long-term survival, something as I say that is supported and welcomed on the appropriate pages on this forum. History will decide if it is the right or wrong thing to do, but at least Hornby are having a go. They are trying to ensure that Hornby is around for the next 100 years as well….. and now we castigate them for it.
At this point, I shall note that I do not see read protests from the vast majority of the much-cherished local model shops I often read about. I can see one statement from an online trader who I have never heard of, but that is the sum of it. I appreciate that it seems Hatton’s are sadly missing out and I feel for them, but I refer to my earlier point. Class 66, Genesis Coaches, small industrial steam shunter. Apologies if I have missed anything here, but I do not read posts of concern from a long list of actual model shop owners. They seem to be well “represented/supported” by their consumers here on this forum. There certainly is some smoke but I cannot see a multitude of fires burning at this stage.
Hornby felt they had to change, or they knew they could disappear. Ok, I have seen the new directors of Hornby renumeration in their accounts and the share options. But apart from that, I can see no hanky panky going on. All directors usually have an exit strategy to enjoy a long and luxurious retirement. All companies will adapt to change in the best way they see fit. Underlying the many pages on this thread is a company trying to do just that. We may not like it, and vote with our feet, but we should at least recognise the necessity and mind set.
What a funny lot we are. Many of the complainants here state they have cancelled all their orders and will never buy a model direct from Hornby but will announce on a joyous post they have ordered or brought direct, even paying up front, sometimes years in advance, for a Deltic or such like. Thank goodness for the safety net of Credit Card companies for those who poured money into APT’s or other crowd funding projects from whoever was being hailed as the “messiah of model railways” that particular year.
There you are, my first post, hope some like it and some hate it.
