why are model trains so expensive

[jsmvmd]

Try getting married.....

or divorced.

[conradin]

Prices go up, that is just a fact.   It would be interesting to see if there was a way to calculate the average percentage of increase in prices in comparison with other more important things in our lives such as gas,  milk,  etc.

Well, you asked for it...and I think this is a good idea: Let use one of the most common Bachmann N scale products, which also happens to be the cheapest over the years, the D R G & W (Denver & Rio Grande) 41' Box Car, as an experiment..

Year  Catalog#  MSRP  Manufacturing  Tooling   Notes
1968  6115        $1.50 Hong Kong          1
1969  5066        $1.50                         2
1973                $1.75                         3
1976                $2.25
1979                $2.50
1985  53-1000   $3.50                         4
1992  70050      $4.00  China                5
1996                $4.50
1997                $4.75
1999                $5.42
2001  70089    $10.00                          6         "Cookie Box" Paint scheme
2007  70089    $10.00                                     "Cookie Box" Paint scheme

The annual averaged inflation rate of this product is 4.9848%.
Notice that the true inflation rate for the past 40 years is 4.7505%
If Bachmann were to charge this car exactly the price that reflects the true inflation rate, the 2007 price should be $9.17 instead of $10.00...or put it this way, Bachmann "made" a profit of 0.2343% a year.

Keep in mind that the last tooling was done in probably 1999, and Bachmann had five tooling during its entire 40 years history, and for this product it probably has 6 tooling, so you need to account for depreciation cost of the old machineries.  Running factories from China instead of Hong Kong around possibly 1991, also temporarily lower the cost of operation, but then there is the start up cost for the new factory.  All in all, quite a complex matter. 

Of course, all we know is that the company is obviously making a profit...(you can read the annual financial report to the stockholders...)

[Woody Elmore]

Lannie: I too was a teacher and I remember gas at .34 cents a gallon and starting for $5400 a year (that was 1967). This was a time when you could get an Athearn box car kit for under two bucks.

Hobbies are all expensive. My neighbor's boat died this week in the middle of LI Sound - engine work will be in the area of 5 grand. Have you seen the price of fishing reels?

Golf is another expensive hobby/sport. RC airplanes are a great hobby and tend to be expensive.

Collecting wine is expensive, as mentioned above, but how about the cigar afficianados who pay $75 for a smoke?

Best bet with trains is to decide on exactly what you want and focus in on acquiring a piece at a time. Sets are nice but often you are paying for stuff you don't need or want. Part of the great attraction to model railroading is the opportunities that develop. You can learn to be a carpenter. Teaching yourself some basic electronics is a good thing. I personally found doing scenery very relaxing. Once the initial outlay is done there is plenty to do that only requires spending some time and minimal expense.

People new to the hobby want the latest engine such as a big boy, challenger and all the DCC bells and whistles. Then they find out that they have no idea what they are doing!

[Craig]

why are model trains so expensive

They aren't. I've never paid anything even close to retail, nor would I. Model trains are one of the many products that can frequently be acquired very reasonably if you are savvy.

Examples:
I recently picked up four powered proto locomotives from MB Klein for $100.00 total and two Stewart F units for $65.00 total. I got two children involved in railroad modeling last Christmas by gifting them each a complete Athearn train set with EZ track. They cost only $50.00 each, with shipping included and came with a bonus Genesis freight car. My Genesis steam locomotives were each less than $60.00 and my Spectrum steam locomotives were less than $50.00. 100 yards of flex track and cork roadbed? $125.00 total.

This hobby can be very inexpensive if that is your goal. It certainly is mine.

[conradin]

why are model trains so expensive

I got two children involved in railroad modeling last Christmas by gifting them each a complete Athearn train set with EZ track. They cost only $50.00 each, with shipping included and came with a bonus Genesis freight car.

That is so sweet!

[joegideon]

I spend a lot on this stuff- and I have been in it a long time.  But for what you get, Mein Gott!

In the '40s- wayyyy before MY time- model trains were so expensive that the kits were sold in sections- mechanism, superstructure and tender, usually.  A locomotive cost a week's salary- or even a month's.  Mantua's 4-6-2 kit was $47.50- about $475.00 in today's money... And it was A KIT!!
Conversely, the On30 Forney I rec'd today would have cost $18.-20.00 back then.

The model railroader has never had it so good.  I have always been a brass guy- they always looked so much better than the alternative.  And I still buy brass.  But I have recently purchased a pair of gorgeous 4-4-0s, three beautiful 4-6-0s and a couple 2-10-2s- add in this On30 dude and it all comes to half of a brass loco.  And these things are as detailed as the older PFM and Max Gray models that still bring hundreds on eBay.  Every time I look closely at these newer models, I am amazed.  Add to it the flawless running on most- Hey!  It's a deal!

The Old Man on the (Woodland Scenics)Mountain

[foureyes]

Compared to what?  This hobby is no different than life.  Some cars are less expensive than others.  Some houses are cheaper than others.

People pay $3.00 for a gallon of gas, and cry.  They pay $4.00 for a cup of coffee and it's a bargain.

This is another pointless waste of electrons.

[RAM]

January 1951 Model Railroader cost .35, Athearn cars 2.50-2.75, Mantua 2-8-2 29.95,Penn. scale models PCC car 16.95, Bowser 4-6-6-4 less tender 52.50,Hobbytown E-7 kit 29.95.  In 1951 I had a part time job in a drug store,  I was paid 50 cents an hour.  Six months down the road I would graduate from high school and went to work delivering telegrams for western union.  Today part time work for a high school student is something like 7.50 an hour. I think that is 15 time more than I was paid.  At that rate M. R. would cost 5.05,  Bower 4-6-6-4 would cost 787.50.  So things are not so bad.  You get a far better model today.  I just wish they were made in the U.S. with people who took pride in their work.