Re: - Kits vs. RTR


Bill Schneider <branch@...>
 

Well, Marty put his two cents in before, so I will now....

First Dave, let's look apples to apples - those $3.00-$4.00 kits are between
$8.00 and $12.00 now - remember, we're talking about Athearn or MDC cars in
those days. There were no equivalents to current offerings from IM, RC, P2K
or Branchline. "All those little bits we now expect" DO cost more money to
tool, produce, paint, pack, etc.

Second, the $25.00-33.00 range is for assembled, RTR cars (well, maybe
except for RC). Surely you would allow some margin for assembly labor?

Comments about narrower markets for specialty cars are right on target and
are a factor in kit costs. If I can sell three times as many cars of a model
I can amortize the tooling and R&D costs over many more units. On the other
hand, one third as many units means much more per car to cover costs.

Bill Schneider

No, not quite Chuck. Between 1958 and 2000 the CPI index increased by
4.48X
so those $3-4 kits would be priced at $13.50-18 now, not $25-33. Is that
extra 100% attributed just to tooling all the little bits we now expect?
Perhaps. But that assumes no increase over 45 years in the productivity
of
tooling, something I find hard to believe. My own guess is there are
fewer
output units now so each bears a higher portion of the invested expenses.

Dave Nelson

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