Re: What is Prototype Modeling?

Dave Nelson

I think Tim is correct here... and IMO the thought can be extended to
explain the move to the pre-order / very limited inventory business model
too. Inventory is, after all, cash in a much less useful form. If you can
transform it into sales, great, if not... what a dumb (and costly) move that

I would not be surprised to discover that Kadee does much smaller production
runs of their cars than they did at first and do so because they can...
whereas going offshore probably greatly reduces certain degrees of
freedom... perhaps offering a chance at more profit but also taking on more
risk. I would guess that Accurail is similar. I don't know what either
actually does... but having spent many years working in and around
manufacturing I know there is always this conflict between amortizing setup
costs with big runs vs. carrying too much finished inventory (my own opinion
is holding much in the way of finished inventory is either bad, bad, or
bad). Anyway, what's best to do this year may well be what was worst two
years ago and if you're going to survive you have to be very flexible in
your decisions.

Dave Nelson

-----Original Message-----

Partly. I think the larger reason is that the market shifted as a result of
a FEW new manufacturers that began producing very high quality, accurate,
prototypical models and were hugely successful at it. The market shift
caused the old vendors to wake up (not all at the same time) and they began
to produce high quality models in earnest.

In other words, it was old fashioned competition that got them off the dime.
No doubt the train market would be in the deepest doldrums if they had stood

Tim O'

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