HO Scale limited runs

[NW Modeling List]

Hi all, this is my first posting hope i am doing this right.

I have a question, speaking of limited runs. What are my real options for
steam n&w locomotives? BESIDES the j, y, and a. I would like a switcher,
because i have already have the j and just got a class a. I would like
something to switch my yard. I have heard brass is the only real option for
a good model, but i cannot find any around or i think it is crazy to pay 800
plus dollars for something i need to hack to dcc  and paint myself.....

Any suggestions?

David

On Tue, Jan 18, 2011 at 3:43 PM, NW Modeling List <nw-modeling-list at nwhs.org

> wrote:



>

>

> I think the reality is that the model companies realized that the world

> changed and that to make a profit, they had to change the way they marketed

> and sold their products.  It was common for modelers to not buy the initial

> run of products but wait until the discounters offered a lower price a year

> or two later.  That action cuts into the manufacturer’s margin as it drives

> the overall market price (not cost) down on specific items and items in

> general.

>

> For instance, everyone knew that LifeLike would eventually mark down their

> remaining inventory and sell it through their discounting arm.  They were

> competing against themselves in essence.  (Dumb.)

>

>

>

> One of the reasons that the PRR owned so much stock in other railroads and

> coal  fields in the 1880-90’s and early 1900’s was to *control the freight

> rates*; railroads were undercutting each other to move coal so much that

> the profit margin was negligible for the railroad.  By being on the board of

> a railroad, the PRR men wouldn’t allow poor or risky business practices that

> would be ultimately bad for all railroads.

>

>

>

> With the model makers making limited runs, they can take control of the

> pricing again.  By limiting the production, they can reduce or eliminate the

> discounting efforts of the distributors or dealers to compete between

>  themselves.  This keeps the prices up and the resulting margins for the

> manufacturer.  For most distributors, this is a good thing.  For a ‘basement

> bomber’ whose business depends on having a lower price than anyone else, he

> will find it difficult to get inventory or get inventory at a price that

> makes it possible to him to discount effectively.

>

>

>

> This is a normal business cycle.  Mass production requires extensive

> distribution systems to get the thousands of items to thousands of buyers.

> Periodically, the manufacturer has to ‘clean up’ his distribution system and

> distribution business model to get his costs and pricing back into a

> desirable ratio.

>

>

>

> The market has changed, too.  Most of the buyers today do not want to build

> anything, paint anything or decal anything.  You can observe this at any

> model/toy train show.  The scratch building parts don’t sell, decals don’t

> sell in any volume and complex kits go unsold.

>

>

>

> Gary Rolih

>

> Cincinnati

>

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