Hornby the English manufactures of a number of hobby and train items, such as Thomas and Peco track is trying to work out a new financing deal with dropping sales issues. Hopefully they don't fall into Kader's hand's as have a number of companies. See link below. https://www.theguardian.com/busines...investors-to-back-8-million-pound-fundraising
"UK sales were hit last summer because of disruption caused by new computer systems while business in Europe was also affected by the revamp and the non-arrival of products from China." This sounds a lot more like something self-inflicted, combined with an unexpected business situation. More so than the market declining as possibly the big factor.
Watching the YouTube Unboxing videos from the UK, it seems the one comment everyone has in common, the prices of Hornby locomotives and train packs continue to rise, while detail is sacrificed. Another troubling item, Hornby owns several brands: Arnold, Lima and Rivarossi to name a few, but only seems to concentrate on the Hornby brand. Is this a sign of a company about to go belly up? Have they forgotten there is plenty of competition in the OO gauge UK train market from Bachmann Branchline, Dapol and Hatton's? Most if not all of Hornby's products are produced in China, so they may already be dealing with Kader? If Kader were to smell blood in the water and purchase Hornby, I can't say that would be a bad thing. In my opinion, Bachmann products have done a turn around for the better since Kader purchased Bachmann.
Most of Hornby's stuff is produce by Sanda Kan. And Sanda Kan is owned by Kader and Kader already owns a chunk of overseas model production companies through Bachmann.
There were also heavy accumulated losses from Hornby's 2012 London Olympics themed merchandise debacle. https://www.independent.co.uk/news/...ille-and-wenlock-derailed-hornby-8176005.html https://www.telegraph.co.uk/finance...to-red-after-disappointing-Olympic-sales.html http://www.thisismoney.co.uk/money/...85-sale-amid-Olympics-themed-sales-slump.html https://www.theguardian.com/business/2012/sep/25/hornby-shares-crash-olympics-profit-warning Neville Trains N Scale™
Sanda Kan and Kader are the biggest threat to our hobby. They control the Chinese manufacturers which has caused delayed products from many importers.
Which brings me to another area of thought. If this hubbub about tariffs comes to be a reality what effect will that have on the hobby as far as prices. The vast majority of my current fleet of locos were made in China. The track I am ordering and using on the current build, including the English Peco has it's origin in China, and I believe the Atlas track components. The one thing is that increased or imposed tariffs do not happen over night so if it happens it will be awhile yet if I can believe what I have read about them.
When you move your manufacturing out of it's home nation, you are vulnerable to their influences. Nobody seems to understand this fact.
Does anyone know how much a US company pays a Chinese company for, say, 1000 locomotive drives? I am getting so tired of hearing excuses from these model train import companies that want to portray themselves as manufacturers, complaining about delays by factories in China, that I am starting to wonder if it could not be fixed the old fashioned way.
Chinlish slows the production. They sometimes do not translate well. Both sides look at a problem differently or they do not explain it correctly. Been there done that.
The bottom line is, everyone in any kind of business is there to make money. They walk a tightrope.....if they sell their product at too low a price, they can sell a lot, but they go bankrupt. If they charge too much, sales will suffer, and the go bankrupt! If their cost of labor is too high, they go bankrupt. If they rely on cheep labor the quality of the product suffers and....... Well you get the picture. And of course the many other business decisions they make can have the same effect! Just the way this old man sees it!! Live Long and Prosper! Jim
Pricing strategies are an interesting challenge. What's going on in N scale is anyone's guess. I recall margins for domestic manufacturers were never large.
You don't "lose" anything. You simply don't get full retail/MSRP. You do make money. Been there, done that. Example: Where our member John Moore so often shops.
