Demise of kits.....Silver lining?

jerryl · October 21, 2009, 08:44:48 AM

I, as many others, am saddened by the demise of kits, but there may be a silver lining. I realize it's a financial decision on the part of the mfgs. & it could save some of the struggling hobby or Train shops. After all you can make more profit on a $15 item than a $7 item. I'm sure the shop owners would rather have $15+ items on the shelf than $7 items.
As we have seen on the various forums, Hobby/Train shops are having a hard time if not closing. Maybe this could keep them going a while longer.
Jerry

BestSnowman · October 21, 2009, 09:31:08 AM

Maybe, but generally in busines a fast nickel is always better than a slow dime. I'd argue it might even be worse for hobby shops. Doubling the minimum price (using your $7/$15 numbers) will have an effect on the modelers on a tighter budget which will lead them to buy less or look elsewhere for deals, such as an online auction.

But all of this assumes that kits are big sellers which it appears was not the case

CNE Runner · October 21, 2009, 10:19:01 AM

While I haven't seen a $7 kit in some time, I have to agree with Bestsnowman with regard to inventory movement. Yes, you can spend twice the kit price and be 'ready to roll' in seconds. Using your figures, Jerry, one could [alternately] purchase two kits for the price of one RTR unit...the only other expenditure, on the part of the buyer, is a little glue and some of his/her time...I guess it comes down to the depth of your wallet and the breadth of your commitment.

The real problem for the LHS is the Internet. Very few brick-and-morter hobby shops can compete with an Internet seller - who operates out of his spare bedroom. With the subsequent demise of many LHSs, the modeler has no one to turn to for advice and assistance (excepting this excellent forum of course). You get what you pay for: cheaper pricing; but little to no support.

I seriously doubt that model railroad kits will ever 'die'. There will always be some manufacturers who find it expedient to fill this 'niche' - and turn a profit in doing so. The hobby has definitely improved since I became addicted in the late 1950s. If RTR and Built Up brings in new model railroaders - I am all for it!

Ray

BestSnowman · October 21, 2009, 10:37:23 AM

I actually bought a flat car kit for $7.25 this weekend (40' RI blue box). There was one other kit I saw for 6 and some change but I can't remember it was. That said most BB's were 8-10 and Accurail kits 10-15 (still not bad).

"I seriously doubt that model railroad kits will ever 'die'. There will always be some manufacturers who find it expedient to fill this 'niche' - and turn a profit in doing so. "

I think with Athearn leaving the kit business it might be a good time to let the remaining kit manufacturers know there are those of us who still prefer to buy kits.

"The hobby has definitely improved since I became addicted in the late 1950s. If RTR and Built Up brings in new model railroaders - I am all for it!"

It definitely made it easier for me to get into the hobby by starting with RTR and lead me to enjoying kits. Though somedays amidst a flurry of inappropriate language I wonder why I don't stick to RTR (I've been trying to install a decoder on my 20+ year old SDP40)

jerryl · October 21, 2009, 12:26:57 PM

Just got back from our local train shop & was informed that Bowser, Intermonntain as well as Athearn & Roundhouse are dropping the kits. We won't have a choice soon. Yes, there may be some company that will take a chance on kits, but at what price? Saw a Bowser caboose KIT for $28.95. today. Don't really know how it will turn out...That's why I put a ? after Silver lining in the original post. Jerry

rich1998 · October 21, 2009, 02:06:46 PM

we have to learn to adapt. the world is changing. i still buy new roundhouse ho rolling stock kits at river city railroad.
http://stores.shop.ebay.com/RIVER-CITY-RAILROAD-RCR__W0QQLHQ5fBINZ1QQ_armrsZ1QQ_scZ1QQ_sopZ10

jays trains has a lot of kits
http://www.jaystrains.com/
lex

Jim Banner · October 21, 2009, 02:30:36 PM

I agree that there may be a silver lining, but it may not be for the local hobby shop. One big factor in buying on line is the cost of shipping. If I have to pay $7 shipping on a $15 item, then shipping increases my cost by less than 50%. But that same $7 shipping on a $7 item, doubles my cost. Maybe I am the only one that looks at things this way, but if not, that increase in item cost may help the Internet sellers more than the hobby shop owners.

I like that "a fast nickel is better than a slow dime." I will have to remember that saying. I wish I had known it when I ended up in the middle of an argument between the co-owners of a hobby shop. The one partner had agreed to sell me a very large order of track for a minimal markup. When the other partner found out, he was madder than a wet hen. I ended up explaining to him what the first partner already knew - they had my money in hand a good month before they had to pay their own supplier - no tying up their funds, no cost to store the product, in the back door and out the front door without every having to take it off the dolly. Why the second partner would think I would be happy to come in and pay full retail when the order was large enough that I could have dealt directly with his supplier, I do not know.

Jim

Johnson Bar Jeff · October 22, 2009, 10:45:29 AM

Quote from: Jim Banner on October 21, 2009, 02:30:36 PM
I agree that there may be a silver lining, but it may not be for the local hobby shop. One big factor in buying on line is the cost of shipping. If I have to pay $7 shipping on a $15 item, then shipping increases my cost by less than 50%. But that same $7 shipping on a $7 item, doubles my cost. Maybe I am the only one that looks at things this way, but if not, that increase in item cost may help the Internet sellers more than the hobby shop owners.

I think I tend to think the same way. If the shipping cost for an item I see anywhere on line strikes me as unreasonable high, then I won't bid on or buy it, unless it's something I really, desperately need or want.

BestSnowman · October 23, 2009, 09:42:03 AM

Quote from: Jim Banner on October 21, 2009, 02:30:36 PM
I like that "a fast nickel is better than a slow dime." I will have to remember that saying. I wish I had known it when I ended up in the middle of an argument between the co-owners of a hobby shop. The one partner had agreed to sell me a very large order of track for a minimal markup. When the other partner found out, he was madder than a wet hen. I ended up explaining to him what the first partner already knew - they had my money in hand a good month before they had to pay their own supplier - no tying up their funds, no cost to store the product, in the back door and out the front door without every having to take it off the dolly. Why the second partner would think I would be happy to come in and pay full retail when the order was large enough that I could have dealt directly with his supplier, I do not know.

Jim

I'll be honest, I've never seen a wet hen. I'll have to take your word on how mad one gets. In defense of the ~~hen~~ second co-owner its very easy to get caught up on the short term economics.

On the other hand, in addition to the advantages you stated, someone who buys a lot of model railroad track will likely need a lot of other model railroad stuff to go with it. If you get a deal on large orders you are much more likely to return for future purchases.

CNE Runner · October 23, 2009, 11:24:28 AM

I think the real 'shocker' is the price of shipping these days. One can easily spend as much (or more) for shipping than the item's sale price. More than once I have passed on a purchase - simply because the shipping was so costly. What really 'cranks my tractor' is paying $8.00 for shipping/handling; only to look on the arriving box to see the cost of shipping was $4.00 (are cardboard boxes really that expensive...if so I have a very expensive collection of them in the shed).

Ray

ABC · October 23, 2009, 11:34:50 AM

Quoteare cardboard boxes really that expensive...if so I have a very expensive collection of them in the shed

Hey, I just thought of something...why don't you hire an expert to appraise the value of your cardboard box collection...you know for insurance purposes in case something happens to your shed, who knows you may have some really valuable vintage boxes in there...circa 1970...I bet those will fetch top dollar...they just don't make boxes like they used to....real collectors items. (laughing)

CNE Runner · October 23, 2009, 05:35:40 PM

ABC...I can see that you are an 'idea' man! Hmmm, I just might do that.

Ray

Robertj668 · October 24, 2009, 03:14:46 AM

Just to make a quick note my local Hobby Shops were very happy to have them.

One additional thought. I would go in and buy a $7 kit and wind up spending $50.

Robert

jonathan · October 24, 2009, 06:59:12 AM

I hate it when that happens!

And it happens all the time, too!

News:

Demise of kits.....Silver lining?

ABC