Actually JIT came about due to business inventory tax creep. Having items sitting on a shelf, and paying taxes on them, which could be more than once, did not fly. JIT was the result. Those taxes are also part of the reason why you see annual inventory reduction sales.
I like using the Intermountain kit example because I really liked them, good price and the fun of building them. I was told by IM staff that no one bought them but there was a very vocal demand for RTR cars. If I remember correctly the kits were the beginning of intermountain and the ready to run stuff was a few years later. I'll bet that if the kits were a good selling item there wouldn't be ready to run IM cars today, they would have stuck with their neat little kits. Again , market driven. As time went on, the kits were literally dumped for deep discounts to eliminate the inventory. As I remember the kits were entirely made in the USA. I think the lesson IM learned was that the assembled cars sold better but there was a much higher cost to ship the parts overseas, have them assembled and shipped back. So far their system evidently is working because they are still in business and they don't have warehouses of inventory anymore. In my opinion and based on the intermountain example I cannot see how the current marketing plan for manufacturers is anything but market driven. Randy
Funny about that "3600 pieces per road name" from Bachmann. I recall their N scale SD40-2, from about 1992 had the exact same quantities touted in their adds as limited quantities. They sat on the shelves for a long time, since they just didn't match Kato/Atlas locos, even as popular as that model should have been. While most mfgs. keep run numbers secret, BMann seems to put it out there. By all reports, new N scale locos probably don't sell more than 3600 total in the first run, so they may be way off base and have some inventory again. I wonder if that is how many shells that can be made off the mold before it needs some work and they base production on that kind of technical issue (maybe paint pads?) over pre-orders. Not bad, really. Once you pay for tooling, etc., each copy of the shell can only cost pennies to run, but more to paint, add motor, ship, etc. Not sure, but I think I would save half for the second run.
It would not surprise me if large quantities of models were to be produced and shelved in warehouses in China. They can keep the parts indefinately without inventory taxes. It would only be an issue of storing and waiting to release completed & decorated model's as they announce them. That is not practical by US business processes. Sent from my SM-G530T using Tapatalk
Just started a post about the IM SD40-2, along these same lines. IM now has delayed them AGAIN. It will be 21 months from announcement to delivery (if new January date sticks) and 15 months late from original release date. They have a total of 52 roadnames announced, yet have ZERO product on the street for people to see first hand. How do they expect us to pre-order any item if we can't see/hold them in person, esp in this situation when previous SD-45 or tunnel motors weren't up to peoples expectations.
It's ironic that those companies most likely to require some minimum number of pre-orders before cranking up the assembly line for a given model seem to be precisely the same ones whose track record requires their customers to make a huge leap of faith regarding the abilities of (the off-shore subcontractors for) said companies to produce satisfactory merchandise.
And then they mistakenly conclude it's a lack of interest, when it is actually simple consumer caution.
I haven't been reserving too much stuff in the past few years. I have some Intermountain Northern Pacific & SP&S observation passenger cars which have been reserved since April 2013. Those aren't even showing up on the Intermountain website right now... wondering if they were cancelled??? The S.P. Shasta passenger cars are still there... at least 5 years since they were announced The Northern Pacific F7's from Intermountain have been announced since April 2014. The Atlas S2 in D&RGW are now about a year since being announced. The WOT 60' Harriman coaches are supposed to be shipping soon... so... they were the closest to being 'on-time'. The slow production of models is one of the reasons I haven't been pre-ordering. There is no way to know when something is going to arrive... or not... anymore. It's hard to budget when you expect things at a certain time... but they don't arrive. That money saved is then put to other uses. Then... everything suddenly arrives at the same time! So... I agree... the lack of response to the pre-ordering is often a 'lets wait and see' if they actually are going to deliver the models. There are still many model railroaders which have become temporarily or permanently 'downsized' economically. That uncertainty of funding... becomes big reason to avoid pre-ordering. This has cause many to wait until the items are actually available. The problem there... obviously... is the most popular items will sell out fast. They will be available on the 'secondary' (re-sale) market at a higher price than the discounted items were selling for when pre-ordered. This is a double whammy for the fiscally challenged model railroader.
I have only Pre Ordered three items in the last three years. A GP-7. Atlas was on time; a Transfer Caboose, I for get which company that was from since it's been so long; delayed, and last but not least a Custom Christmas Car that has been delayed. I will not Pre Order anymore and will just run what I have from this point forward. Good , Bad, it's not user a Customer friendly system. Plus it preys on the fact that US Consumers can never say enough and be satisfied with what we have and always want more. Not this one Consumer. I have at least 30 Locos all DCC now and 100 pieces of rolling stock. All my needed era. So I can say and be grateful for what I have.
Yep ... I have to agree with ya' as to the 'never satisfied'... ( I resemble that remark). Many of us are always looking for that next unique model... whether we really need it or just crave it. Sent from my SM-G530T using Tapatalk
"The slow production of models is one of the reasons I haven't been pre-ordering. There is no way to know when something is going to arrive... or not... anymore. It's hard to budget when you expect things at a certain time... but they don't arrive. That money saved is then put to other uses. Then... everything suddenly arrives at the same time!" This came up at my LHS this weekend, customer had 8 HO sound equipped locomotives. 4 Athearn and 4 Intermountain units, his bill is about $1400 because they all showed up on Thursday and Friday.
I know nobody asked, but I have a gut feeling that the one manufacturer being discussed is very close to being belly up financially. They are using stalling tactics to rid themselves of as much inventory (not that they have a great amount) sold off before pulling the plug. I have had dealings with them in the past year. Sour grapes? Possibly, but I am just interpreting the facts as I see them. Carl
Gee Carl... I hope not... the one we keep speaking of has supplied some very nice products over the past two decades. Problems have been a regular issue with them though... so I understand the concern. Sent from my SM-G530T using Tapatalk
Yeeooww. I hope they'd been setting aside some funds! That's a good sized sudden whack to the wallet.
Now-a-days... it doesn't take too many simultaneous releases to get hit with a $1000 plus wallet crusher. If all of the pre-ordered NP F7's and the Atlas D&RGW S-2' arrive at the same time... I'll have to sell a kidney.
I have never preordered a thing in my life in the sense that funds had to be committed before the product was ever made and never will. Back when I had a brick and mortar LHS there were product announcements of items that I did order through that shop with no commitment of funds in any way. Also the product was usually arriving at the LHS within a few months of the announced release and not a year or two later. Also samples of a lot of those products had managed to make their way to a number of product reviewers where the written reviews helped me make an informed decision whether to buy. With all the ballyhoo of folks hurrying up to order something that hasn't even been produced or tested yet I have yet to have needed to jump on that bandwagon. I have found that the current shop that I patronize the most always ends up with stocks of the aforementioned product ready for me to just click on the computer to order and have within 2 or 3 days. Thus I have found that there is no need to commit to something that I haven't had a chance to read some revues on beforehand and thus already know about any possible glitches or quality issues. As to the problems of product releases getting pushed back time and time again I have a one word answer, China. Ever wonder why Bachmann doesn't seem to ever be in that situation. They are Chinese owned and you don't bite your own hand or short yourself. When some of these companies finally manage to break the China grip on them the problems will resolve themselves.
Not sure if I've responded or not but I support pre orders, on one condition. I can pay in advance, like Lowell's products. In Gaming thats usually how I reserve copies of games I want so, I guess I'm use to it. Thats just me though, I'm usually the outlier.
You must be a closet SPF! But seriously the BLI PRR M1 was announced in 2005 and is still not here. I pre-ordered two in 2005 but later cancelled. Now I could care less if they ever arrive.
This situation with delayed products must be taking a toll on smaller hobby stores which depend on regular turnover of product to stay profitable. Sent from my SM-G530T using Tapatalk
According to my local hobby shop, (the only one within decent distance of me) there in no money to be made in model railroading anymore. This is why the expanded to R/C. That is the big money maker for them. Without that, they would have closed up years ago. They don't have an online store, which I guarantee would help too make the model RR more profitable. The do pre-order for people, but it's never been a big part of its business. I do not like the idea of, "promise to pay me for something not built." I get the whole idea of needing commitment. We all get excited at the prospect of the fancy new product. But it just seems ridiculous we have to wait years for something to maybe be made. And somewhere in there the excitement goes away. And we just loose interest. I have been wondering lately. If it's so tough to get something made, why not partner with one of the larger makers like atlas and con cor did back in the 60's 70's & 80's? Just some crazy morning thoughts. Sent from my SM-G900V using Tapatalk
