Model Railroading > Rising Cost of Model trains

I've been noticing that the cost of models is going up significantly over the past year.  For a new Athearn Genesis SDF40-2 the cheapest I could find is $265.  A Genesis F7 $230.00.  My question is this market sustainable? Or is it the retailers just being greedy? I've seen models that don't sell the price get cut significantly.  This my first year that I really can't afford these kinds of prices.  Either way I can see the market imploding.
 

My opinion, one of the factors is that everybody wants instant gratification, IE, no painting or detail work done by the modeler and everybody wants their favorite railroads version done to the "T", just saying....

"instant gratification" has such a negative connotation to it. Some people just don't have the skill it takes to make their models look prototypical.

Ahh, the monthly (or so it seems) 'why do model trains cost so much now?' post.

Last month's edition:

http://www.trainorders.com/discussion/read.php?3,4226901,4226901#msg-4226901

SantaFe9820 Wrote:
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> "instant gratification" has such a negative
> connotation to it. Some people just don't have the
> skill it takes to make their models look
> prototypical.

To add to that I can see where,"Time is money". Until I retired I didn't have the time to dig up the parts to detail my locomotives. Now that I'm retired I can purchase "basket cases" and have the time to repair and detail them.  As my wife said when I retired, "Everday is now Saturday".

i KNOW i don't have the skills (or eyesight) to customize my n-scale engines.

currently, i have NO complaints on how reasonably priced n-scale locomotives are ............

66

Quality models with decent DCC is what makes the difference, that is not directly comparable to what we had a few years ago. Don't know how long that will work though, there is a dollar amount when not-so-many folks can afford the nice stuff. At some point DCC and proper details, or having every prototype out there already built, would theoretically make the price level off.
Enjoy while we can.

checkmate007 Wrote:
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> I've been noticing that the cost of models is
> going up significantly over the past year.  For a
> new Athearn Genesis SDF40-2 the cheapest I could
> find is $265.  A Genesis F7 $230.00.  My
> question is this market sustainable? Or is it the
> retailers just being greedy? I've seen models that
> don't sell the price get cut significantly.  This
> my first year that I really can't afford these
> kinds of prices.  Either way I can see the market
> imploding.
>  

Are you quoting "sound" prices?  or without?

I must admit, when Genesis first started their Highliner/F unit productline, they were far too cheap for what it was; the basis being the very accurate Highliner F unit body.  I recall the earliest offerings as being $90.  They were so cheap, the purchase could be justified for any F unit admirer/collector irrespective of prototype.  Now, in my opinion, the price justifies only specific liveries for your modelling interest.  

Speaking from the perspective of your "greedy" comment - no I do not think so at all.  Being involved with a friend's company and his import of models for an overseas prototype, I can tell you the margins are hard to justify being in the business.  This especially holds for the freight car line.  Locomotive production is the only way to increase the margins and I have to say, the best thing to hit the market (from a producer standpoint) is the sound DCC concept.  You bring in that and the margin percentage is enhanced - one could even venture that it may save the hobby.  Given that some production volumes are smaller than the big guys (read: European, British or American outline) most (you) certainly wouldn't invest in model train production.  Read these words here and now:  if you want it and it fits your modelling interests, do not wait because you may never see it again.  There is a huge churn of cash in this business which involves alot of money coming and then going to China to cover the next tooling.  While the USA importers have likely the largest model railroad market in the world, they have to contend with larger scale logistical distribution costs.  These are mainly in the cost of margin as dealers and/or distributors get involved.  In no way, can that market function without them.

So, with that in mind, we see the regular "why are model railroad prices so high?" messages regularly here and elsewhere, coupled with the "my local hobby shop is closing".  Couple those with the pressure on pricing and the exponential  rise and rise of internet access, comes the on-line retailer with little overhead to assist with those price pressures.

Buy it or don't buy it - that is all there is to it.  And if you miss out, you can always go to eBay where GREED really does exist when something sells out.

Rick

Patch had my same thought. 

I also would add that I think another reason that people think everything is much higher is that there is so much more to want. Instead of you got your lone Chessie System GP 35. enjoy it, now there are multiple model makers making multiple numbers and scheme variations of so many road names. Heck, I have 17 different plastic pellets cars in N scale, all separate numbers and many different reporting marks. That would have been unthinkable even twenty five years ago but all of these are cars that I waited until they went on sale, so there are still more to add to the pool as those go on sale. It is addictive, thinking of all the cool crap that you could buy but at least with model train stuff you have something good to show for your money unlike other addictions.

Jim

I would say an emerging middle class in China demanding better pay and conditions is having an impact also.
Regards,DK

Check the cost of train stuff in Canada , add 35-40% exchange rate and its scary!

Mike Bannon
St Catharines, ON

Prices don't rise, the value of the dollar is tanking.  It's a hidden tax that will never have a refund or write off.  

That's nice.  It's always helpful to shut somebody up.  I really appreciate it.

I have long been in N scale. You can still buy at discounts...almost everything needed for your layout. You can buy used very reasonable, often for half price.  One thing about N..unit trains are very possible and of course  you then need several locomotives to pull big trains. OH..and you dont have to have DCC to have a lot of fun.  I figure at 76 years old its time to start running the stuff that I have never opened.
Roger Beckett

CajonRat Wrote:
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> Prices don't rise, the value of the dollar
> is tanking.  It's a hidden tax that will never
> have a refund or write off.  

I buy Euros at least once a week. The dollar has been pretty stable against the Euro since 2003.

Now., has the Yuan risen against the dollar? Possibly. 

Chinese labor costs have risen. Also remember that one of the major Chinese factories shut down.

 

Remember the yuan value is messed with by the Chinese all the time.

checkmate007 Wrote:
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> I've been noticing that the cost of models is going up significantly over the past year. My
> question is this market sustainable? Or is it the retailers just being greedy?   Either way
> This my first year that I really can't afford these kinds of prices.  I can see the market imploding.

People have been saying this for the last 20 years starting with when Proto 2000 HO diesel prices took a major jump in the late 1990's.  It seem to be all too easy to blame the problem on greed, but Jason Schron of Rapido has pretty well set the record straight on that and it comes down largely to labor costs required to offer models at a level of detail sought by the modern hobbyist.

Bottom line is, if you can't afford it, don't buy it.  Or, buy the version without sound.  I can't afford a Mercedes or BMW, so I bought a Toyota.  If you can't afford all the whistles and bells, no pun intended, buy something cheaper.  I have had a fairly limited budget for some years so most of the HO engines I have bought don't have sound.  As it turns out, that was a blessing in disguise because the quality of sound in most of the engines that I bought was substandard anyway.  Also, there are a lot of items on the secondary market or at train shows you can buy for attractive prices if cost is a factor so the hobby can be more affordable.

In the end, if the market can't sustain this level of higher cost hobby products, it will correct on it's own and we will see fewer offered.  As it stands in the present day, we have more choices than ever between past products and newer offerings.  It's never been a cheap hobby if you want all the finest goodies.

Cheers, Jim Fitch
 

To me it's more a case of perceived value. In the past, when nice freight could be purchased for $20 or so and a nice non-DCC engine was $80-90, I would purchase any freight that fit in my era and any engines done in B&O, C&O, N&W, EL, RDG, and WM. Got to be a huge collection. Anymore, given the current pricing, I only purchase B&O engines and select unique cars. 

It's not a case of not being able to afford the new stuff, it is a case of seeing most everything as overpriced. But then again, I drive a GMC as I see BMW's etc as overpriced. Add in several manufacturers going to MAP pricing - well, that exacerbates the issue.

One last comment, if this issue of pricing comes up every month then that indicates to me that it is a real issue for a segment of our hobby. 

Baltimore

I have been a dabbler in model trains for 30 years.  Back 20-30 years ago prices were in the $20-40 range for an Athern engine, but no sound, no DCC, and the averge Joe could pay the money to make the purchase.

But over the last 20 years I too have seen the prices go up, and up, and up.  I do understand the economice of the tooling, import fees and labor costs and understand the need for the prices to go up.  However I don't think individual's salaries have kept pace witht the increases.  I am lucky to make about 3 times what I did 25 years ago, but with engines in the $200-300 range (10 times increase) I just can't justify the expense. 

I also see that rise with freight cars.   A $2-3 Roundhouse kit was pretty good and yes you had to put it together.  That same kits today as RTR are $20-30+.   It has priced me out.

Now on the flip side I am beginning the process of selling off my father's extensive collection of HO 'stuff' for my mom but it is all non DCC and older kits from 10-30 years ago.   Probably nearly 100 or more engines and 1,000 freight cars to sell.   I am curious as to what prices will be realized.  

I am also selling his books and have been disappointed with the final prices so far.  That is one sector of our hobby that has significantly declined in price. 

Amazing, and the same people who think model items are high priced buy a new pickup for 50-70K and think nothing of it towing an RV that costs the same.  If one figured otu the rise in price and quality of the goods they want to be exact scale that would equate to brass prices back
30ysr ago with low detail plastic stuff. Scale trains doesnt seem that out of line with there prices depending on quality you want. Brass turbines were never as good as there standard model. 

Bottom line buy what you can afford not one of everything and then gripe about prices.   Most engines unless one wants the newest current engines can be bought for reasonable prices used and I have several that look great unless you are very close. I have fun with what I own and
can afford on my now fixed income.