NWCanuck
Tip&Ring
I just read an interesting article in the July 2011 issue of Model Railroader Magazine (pg.10). Seems the Hobby Manufacturers Association (HMA) just released the numbers, showing the US Hobby industry cleared $1.47 Billion in 2010 which is up from sales in 2009 at more than $1.3 Billion at the manufacturer level. These numbers are then divided into four categories with model railroading coming in on top with $424 million of that 2010 figure above. This is not the part that really interested me, although it is good to see the industry is still growing at least if you go by profits.
The part that surprises me is the $2.5 - $3 billion dollar profit at the retail level due to a 40% to 50% markup. These numbers are based on a survey taken by only 39% of the US retailers that are members of the HMA. Kind of makes you wonder why you are paying $300 and up for a DCC/Sound equipped locomotive only to pass that extra cash onto the retailer who is clearly making more than the manufacturer.
I’m starting to feel like I am at the Gas Pump when I am in my LHS now!
The part that surprises me is the $2.5 - $3 billion dollar profit at the retail level due to a 40% to 50% markup. These numbers are based on a survey taken by only 39% of the US retailers that are members of the HMA. Kind of makes you wonder why you are paying $300 and up for a DCC/Sound equipped locomotive only to pass that extra cash onto the retailer who is clearly making more than the manufacturer.
I’m starting to feel like I am at the Gas Pump when I am in my LHS now!