Does anyone know why prices of HO Model Trains are going so high?
Don't forget that plastic is derived from oil. Rising oil prices mean the cost for raw materials has gone up too. My family's machine shop also does plastic injection molding, and plastic costs have gone up double-digit-percentiles over the past year.
So, without giving away too much confidential info, roughly what percentage of the model's cost is the materials? I always figured that you're paying for the model makers skill in making the mold and casting the model and painting and shipping and advertising etc, etc. I pretty much figured that actual materials were pretty incidental, maybe on the order of 25 cents or so, and even if the material costs double it wouldn't raise the price that much.
Athearn RTR dont require any assembly at all. and It relativly cheap and good quality, And if your handy enough I have seen some amazing things done too some cheap Athern BB but that requires alot of work.
Depending on the material, weight of the shot, and the complexity of the operation (some can run unattended and drop in a box, others require manual removal, trimming, or have to be placed on forms to cool), a shot can range from 25 cents to probably an average of 50 cents.
Then add metal axles, screws, stamped or cast weights, paint, ink, purchased couplers, packaging, etc...
By far labor accounts for the largest chunk of change in manufacturing, and as it was already said, today's RTR cars with extra detail parts require a heck of a lot more assembly labor than kits or older RTR models did. Even so, the major brands are making more than they need to on some of the newer products, and the 'Made in USA' companies have a hard time pricing items to sell, and still make business sen$e.
Oh, Bob, have you gotten any of my PMs? I haven't heard back.
True that! Again, they're pricing them much higher than they really need to in order to turn a profit. I guess it's so they can offer a decent discount to their dealers. Then they'll show up on other sites for a reasonable price, and the dealer can advertised it as being a 'huge discount' off the MSRP. I guess it's sort of like a department store pricing a $10 item at $20, just so they can advertise it at 50% off a few weeks later to generate more interest. Advertising is game afterall...I guess it's all relative. I do know that for example, while I think the new Empire Builder set by Walthers(?) looks fantastic, I just can't bring myself to pay nearly $50 each for passenger cars. By the time you get 8 or 10 cars together, and a couple of units at $150 each, you're close to $1k. I can't spend that much for one train. Heck, I probably can't spend that much on the whole model railroad, at least not in a single year.
No problem. I just wanted to make sure they went through, as Outlook has been throwing a fit for a couple days and I was afraid I may have missed something. I was thinking of maybe having something available in HO, something in N, and a gift certificate, so the winner could choose based on their scale or preference. If you think it's doable, I can at least start writing the general fine print while we work out the details.Yeah, been busy herding other cats, like the broken photo gallery. I'll get to that one of these days...
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