If I were the CEO... of XYZ model train co... how do I promote the hobby?

Calzephyr Feb 6, 2015

  1. Point353

    Point353 TrainBoard Member

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    Tell me more about how this warranty exchange program works.

    My LHS invariably has no inventory of items I want.
    If I tell him that I want a particular locomotive, he'll order one for me - and no more.
    Under your proposed scheme, is he supposed to order two items for every one I request in order to have a replacement unit on hand in case I get a dud?
    He will certainly return the defective product to you, but I doubt he really wants another one sent back just to put on his shelf.
     
  2. John Moore

    John Moore TrainBoard Supporter

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    If the LHS operator wants to have a zero stock inventory then that is his business. The store I do business with usually has 20 to 30 in inventory of each model. Like the FEF. They sold out then restocked again and did so a third time, until they could get no more from the factory. I would expect my dealers to have enough inventory on hand to be able to replace a customers loco. I then would replace his inventory item upon receiving the defective one from him at no cost to him. I would even supply him with a prepaid shipping container. I want the product back to determine the cause of the malfunction. My goal would be to get and keep a good running loco into the final customers' hands. I would not be running a manufacturing operation to just sit back and ignore problems. That's how one gets a bad rep and loses sales both current and future. And if the seller does not want to deal that way then the option of exchanging the product directly with the factory can always be on the table. Heck I would go as far as to have UPS drop off a prepaid mailer to send it back with a note as to what is malfunctioning. Again once the defective product is in the factory's hand a new replacement is on it's way. I want a reputation for quality of product, integrity, and service, not one for poor service and ignoring complaints, like a number of companies manufacturing overseas whose products disintegrate within 6 months of purchase. As for a time limit on a warranty there does need to be one. But I would warranty a product for at least ten years of service and maybe longer under normal usage. I would expect a locomotive motor and electrical components to last at least that long if not longer. Heck I have Kato products that are at 30 years plus in age and under most circumstance if you are going to have a problem it occurs within the first year.
     
  3. Point353

    Point353 TrainBoard Member

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    If you expect dealers to have enough inventory on hand to be able to replace a customer's loco, are you planning to offer some sort of financial assistance to make that possible? As we've seen, no one wants to hold onto any excess inventory - not the manufacturer, not the distributor and not the retailer.

    The option to return defective merchandise directly to the manufacturer was not stated in your original proposal.
     
  4. John Moore

    John Moore TrainBoard Supporter

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    First I expect the quality of the loco leaving the plant to be such that returns if any, are minimal since as stated twice the locos will be tested prior to being boxed and shipped. Not a first run random sample as being done today. Other words every loco will have had a test on the track forward and backwards and if decoder equipped all the functions checked out also.

    As far as dealers having any inventory of anything and having any sort of timely restocking is something I am critical of. Some when you look at the lack of product and empty shelf space you wonder what keeps them in business or how much longer they will stay in business. With some if it wasn't for the expensive RC business they would not stay in business. And in that field you always see a fully stocked inventory. And I don't expect to have a wholesale business of having returns because of quality control and quality products up front. I currently have a total of 14 locos sitting on a shelf, in various sizes of original packing, that at some point I plan to sell. They take up less than a square foot of space. So storage space is not an issue for me or anyone else to keep a small inventory available to the shopper or for replacement if it comes to that.

    As far as the option to deal direct with my factory that is my privilege as the CEO and sole owner of the company to change or adapt my policies whenever and wherever I see fit that best serve the needs of my customer base. It may even come to as time and experiences dictate that my factory will limit itself to a small group of dealers that can and do maintain a decent inventory. Other words factory authorized dealers. The option of selling direct from the factory will always be on the table but the preference will be to support a small network of dealers first and foremost in the best way possible and as the CEO I would always be open to input and feedback from those dealers.

    As far as determining what a warranty period would be on a loco that is a fairly easy process before someone jumps on that. Simply put in my bldg. lobby would be a continuous running set of locos chosen at random from production. After about 720 hours of continuous running, or about 30 days, one of the locos would be pulled for examination for wear and tear on the moving components, reassembled and put back on the track with the others to continue to run. Since there is more than one loco on the test track evaluations can be made at various intervals with different locos. And new loco models that would be introduced would be on the test track churning out the miles and hours way before they would be announced and be on their way to the dealer network. Since I would be producing locos that use some common components It would not be hard to predict the life span of a model that experiences what would be normal usage whether a home or club layout.
     
  5. mcjaco

    mcjaco TrainBoard Member

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    Low cost models with separate details, roadname specific, multiple frames, not outsourced, no pre orders, good benefits, and salary, no lemons???

    Good luck to you.
     
  6. John Moore

    John Moore TrainBoard Supporter

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    Beats unskilled labor working for pennies a day churning out mass produced quantities, with in some cases low quality materials that don't pass the test of time or handling. In house quality control and testing to ensure that a product leaves the assembly and is packed in running condition out of the box. No see how many can be run off the line in one hour or one day with ten other projects waiting to take the place of the one being produced. One basic loco with as many road specific variations as feasible until the demands are met. And only then does the next loco or car type begin production. We produce a single locomotive or car type until the demand has been met and then a few more just in case. Molds and dies and computer programs are tucked away for a possible 2nd run later if demand calls for it. Shop then gears up for a 2nd loco project of another type which had been in development.

    Strict quality control and testing and concentrating on the quality rather than the quantity goes a long way toward reducing the lemons which are so prevalent today in everything made. Time to get away from that attitude and a new BMW a year mentality and concentrate on developing repeat satisfied customers. And yes no dammed preorders that makes folks tie up money waiting for something to arrive. When the new Baldwin gets there it's there. No waiting two or three years to have something show up. When the model is ready the scale specific mags. and the dealers will be notified that a new Baldwin road switcher is available from ACME N Scale and ready to be shipped to the dealers. Videos of the models performance and appropriate literature will be sent at the same time. Totally different business approach which is what is needed today.
     
  7. mtntrainman

    mtntrainman TrainBoard Supporter

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    I like a lot of your ideas John. I dont see how many of them wouldnt work :)
     
  8. mcjaco

    mcjaco TrainBoard Member

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    To which I again say, good luck.
     
  9. bill pearce

    bill pearce TrainBoard Member

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    These ideas are good for the time after the hobby is promoted and we suck in more hobbists, but we are worrying about where to park the busses before we understand where we are going.

    We need to promote the hobby to those who will get in and stay in, middle aged adults. Again, look at the home improvement and woodworking hobbies, There are numerous substantial magazines full of advertising by manufacturers. There are tv shows supported by folks who have stuff to sell.

    Now look at model railroading. We have ever shrinking magazines with not that much advertising by manufacturers, we have no tv shows promoting hands on activities. I consider many of us are the problem. Through my entire time as a modeler, I have been impressed at how cheap modelers are. "I won't buy this magazine because it's got too many ads!" or "A locomotive cost $5 in 1940, why should I pay more now?" or "Why shop locally and pay an extra $10 when I can save a bit on the internet?" or even "What's public television?" We must understand that at least in our system, money greases the wheels. you want good magazines, It takes a good staff to make it possible. The guys running magazines aren't in it for the money. You want quality models? Don't ¤¤¤¤¤ about what things cost, but instead celebrate the good things that people like FVM and BLMA and Trainworx have done for the hobby with well detailed accurate models, and how increased sales volume will lower prices. And above all support your LHS if you have one.
     
  10. Rossford Yard

    Rossford Yard TrainBoard Member

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    I think a lot of responses here are from the viewpoint of experienced modelers, and as such are likely far off base. I fail to see how improved DCC functionality is the first priority of the new modeler, although simplicity may be. Ditto for loco detailing, although reliability may be. That said, we have had this discussion before, and frankly, the lemon rate is already low. I haven't returned a loco for malfunctions in forever! I have bought hundreds, and I know a few have had lemons when only buying a few, which skews perspective.

    As Bill says above, I think we ought to go find out what the newbs might want. It occurs that the WGH shows, which attract 20-30,000 each, are the target (if not most train shows). If there isn't some kind of incentive (LHS discount cart, etc.) for attendees to fill out a survey, then there should be.

    I met an associate yesterday while up in frigid Minnesota yesterday. He knows I model railroad, I have sent pics and he was impressed and yesterday, was thoughtful enough to ask if I was making progress. So, I ask him if he models, because he had relayed that he had a layout as a kid, got all his old stuff from his Dad, and did set up the old stuff for his 4 year old boy, who also thought it was very cool. They love train shows. But they gave up quickly after setting up the layout, so why?

    He was caught off guard at the question, as if he never really considered pursuing it full time. When pressed, he said they didn't have room for the old HO stuff, considered the old collection a good start, but wasn't going to add too much too it at present prices (didn't really get into EBay, although he was obviously aware of used stuff at trains shows) etc.

    I got the sense that basically, it was too big an undertaking given his life - young dad, limited finance, smaller space (although he had just bought a bigger home for his growing family)

    Overall, he was a guy and son who are interested, but found reasons not to model. It seems there is a barrier to entry, combined of cost, time, other things to do.

    So, knowing that one of the things blocking participation is that it just seems to hard, what would you do to make it easier to start?

    My first thought was to promote those prebuilt layouts you see sometimes in MR. Maybe have WS promote a discounted package of three prebuilt buildings. Maybe make bench work and wiring and scenery even easier. Maybe squads of local experienced modelers offering a one night layout building service.

    Just thought I would throw that out there, and see if other "great minds" can come up with a plan to overcome what is clearly getting started inertia...maybe the only difference between non modelers and modelers is we get something done before we ignore that layout for time factors.....
     
  11. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    World history, a now mostly un-taught subject, is filled with examples of scoffing. And where many times those who laughed, hated and even persecuted dreamers ended up with mud on their faces. The earth is flat. Oops. Anti-heliocentrism. Oops. Powered heavier than air craft will never fly. Oops. Man will never walk on the moon. Oops.

    IBM laughed at both upstart Microsoft and the idea of mass PC use. Oops. People swore Amazon would fail. Oops. If we really start digging, the list might be almost endless. Does anyone remember this: Even railroads were disdained by many, in early days.

    Those who wish to dream, invest their time and precious capital are free, (at least here in the USA, for now), to do so. The world of business has evolved through the centuries. It has not been locked in concrete. I'm not going to waste my precious time discouraging them. I'll let them try, and succeed or fail on their own. They are the few who have actually advanced our world.
     
  12. DrMb

    DrMb TrainBoard Member

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    Not quite. With model railroading, the majority of the middle aged adults started with it when they were kids. However, it's the middle aged adults who start to have the finances to properly spend on the hobby.
     
  13. bill pearce

    bill pearce TrainBoard Member

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    Many of the middle aged adults started with a lionel or American Flyer set as kids but got out by junior high. Then they returned. So I must change things to this: Have kids? Get them a Lionel set while young and let them have fun. Don't be alarmed when they go on to something else, just hope they will return as adults.
     
  14. bremner

    bremner Staff Member

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    If I was the CEO...I would make a Trainman like line and push it like there was no tomorrow. I would run about a dozen different freight car bodys with a rotating series of road names, and have 2 or 3 different locos. I would have a typical F unit, and a GP or 2 that used as many of the same parts as possible. I would have a line of track that had 2 sizes of switches and 4 radius options. All products would be DCC ready, and I would be advertising in magazines aimed for children like Boys Life (Boy Scouts magazine). I would also aim at getting good press by placing layouts in childrens hospitals. Without a good quality starter set at a good price, we can't expect children to enter the hobby.
     
  15. badlandnp

    badlandnp TrainBoard Member

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    Advertising in non-hobby places is a major key to expanding the hobby. Any body else see the ad on tv with the mice riding in an HO train? That's what is needed, lots of people have mentioned thaty to me when they learn that I like trains!

    Exposure is the name of the game!

    And Lionel is nearly indestructible, nearly. My boys proved otherwise........but they all still like trains! One day when they get older and settle down some, they will be the hobby.
     
  16. RT_Coker

    RT_Coker TrainBoard Supporter

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    Most of today’s kids are part of the “wireless-generation” with their own wireless gadgets. Many (if not most) schools are providing all of the students with free access to iPods or the like.
    My experience has been that most of today’s kids are turned off by using a toy controller that is not wireless. Producing a train set for kids that does not have a wireless controller, is creating something with very limited appeal to them.
    Bob
     
  17. DrMb

    DrMb TrainBoard Member

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    Just like the kids of yesterday were turned off by things that weren't run by a laptop.
    Just like the kids of yesteryear were turned off by things that weren't run by a desktop.
    Just like the kids of the previous generation were turned off by things that weren't run by a Commodore 64.

    It has nothing to do with the technology interface. It has everything to do with making it accessible and doing interesting things with it. That's why kids are embracing the current prototyping craze so readily.
     
  18. casmmr

    casmmr TrainBoard Member

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    Just on foxnews.com and one of the ads on the side of the page is "scenery brings your layout to life!" Woodland Scenics. I know that the ads are geared to where you go on the web, but, this is a start, right? Maybe other manufacturers will start doing the same.
     
  19. Rossford Yard

    Rossford Yard TrainBoard Member

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    Finally getting some good ideas going here, IMHO. I like advertising outside normal MR channels, and do believe that the ADBOTs that can easily populate individual computer experiences with related ads might work, over higher priced TV adds. If someone clicks just once on a model train video on youtube, at least they have some interest, and you target them cheaper than broadcast advertising.

    Not sure exactly how you do it, but those ads should be targeted to those getting started (for maybe the first five clicks, then change). And, I think those ads ought to headline by saying "Want to get started with a simple model railroad?" Let them click that and get the discounts, starter layout kits (not just locos and rolling stock, etc.) Didn't Atlas used to put out pre packaged sets of track for the six HO (and N) layouts you can build? Seems like that would work.

    Obviously, better minds than mine need to work on this!
     
  20. bremner

    bremner Staff Member

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    google ads are based off of your cookies. Go to car sites and you will see car ads
     

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