Bachmann Farish 2017 Price Increases

Started by Bob G, January 11, 2017, 04:55:53 PM

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Bob G

Quote from: Ben A on January 12, 2017, 06:06:29 PM
Quote from: Bob G on January 12, 2017, 02:58:44 PM

Revolution has to make something on the deal - they don't give their time for free.

<snipped>

Bob

Hi Bob,

Actually, we do.  I thought everyone realised this! 

What tiny margins we build in (to try to guard against currency fluctuations and pay for show stands, flyers etc) we keep in the business - paying, for example, for the CADs for the Class B in an effort to help the project.


Hi Ben (and Mike above)
Actually I meant that you must hedge for some currency fluctuations and also account for the cost of the stands at the shows - they are not cheap!
I guess I was doing a twitter thing and not explaining myself more clearly.
And all the numbers were just plucked out of thin air, to demonstrate the issue rather than anything else.

It is a huge shame that folk don't appreciate that you are spending your time creating these models, particularly the class B tank, and then they are not ordered in the quantity required, given they are at such reasonable prices for the quality.

Best
Bob



trkilliman

Well, my son in laws parents are from Hong Kong. They are actually there at this time visiting family and checking their property.

Some months ago I told him the story about the rising prices and announced wage rises year on year. He smiled, then laughed, shaking his head and saying "unbelievable"

I couldn't get him to say much more but he was sat there grinning.  We will all form an opinion on these annual price hikes, and the level.

Yes we need to continue making purchases, but as things that are important start to rise in price, as is predicted, more will be have to make choices on what they can realistically spend on model railways.

Elvinley

In an interview in one of the mags Phil Sutton shed some doubt on the reason for price increases really being wage rises in China.

longbow

#33
Most manufacturers are attributing price increases to the 19% rise in the USD v GBP.

JasonBz

These sort of threads seem to arise all the time, and all the time they never get anywhere.

I am sorry but the brutal truth is you can only spend what you have available, on what you wish to have....and stop just wishing for more shiny toys....Its gets to a point where I wish someone would just say stop it now children!
This is supposed to be a hobby based on making not buying things.

Snowwolflair

Quote from: JasonBz on January 13, 2017, 12:00:06 AM
These sort of threads seem to arise all the time, and all the time they never get anywhere.

I am sorry but the brutal truth is you can only spend what you have available, on what you wish to have....and stop just wishing for more shiny toys....Its gets to a point where I wish someone would just say stop it now children!
This is supposed to be a hobby based on making not buying things.

Verry true.......But have you seen the price of glue these days................... >:D

:D

javlinfaw7

I believe that this hobby is more varied than making things.Some of us can cope with kits and minor upgrading and modifications,some ,who I admire greatly ,can take a wreck or bundle of materials and come up with masterpieces others look for the most accurate rolling stock and this can mean buying the most up to date stock .There are many more levels of skills and interests in fact I some times think the only thing we have in common is the trains and a mainly positive attitude

Howlin`baz

Does anybody know what wages typically are in China?   I would guess that they are nowhere near as high as in the West.   When  I was working a popular saying was 10% of nowt is hardly better than nowt.
Doubtless the fall in value of the pound increases the cost of whatever we decided to bring into the UK - so why don`t we move production back here?   We are rapidly becoming a low wage economy (when did you have last a meaningful pay rise?) so bring it back home please.    There must be a saving available in transportation costs to the importers at the very least.

Snowwolflair

Well paid about $2 per hour for 60 hour weeks.

Steven B

#39
Quote from: PennineWagons on January 12, 2017, 05:37:23 PM
Alternatively, could we be getting ever-closer to the stage where the Chinese have finally priced themselves out of the market, and production returns to the UK?

Unlikely. Wage for low paid employees in China are still behind the UK minimum wage. According to the Economist the average factory worker in China earns $27.50 a day (£22). The UK minimum wage from April will be £7.50 - over £52.5 for a seven hour day.

If there is a move it will be to else-where in Asia to the likes of Vietnam or Indonesia where pay is still very very low. You'll then have a repeat of the current situation were we enjoy low prices for a couple of years before local living standards start to rise and wages increase accordingly.

We all have a modelling budget. Sadly what would have bought two locos now will get you just one. On the plus side the quality of the models has significantly improved. I'd much rather have one of the current class 37s than two of the old ones (although I'm sticking with my older class 31s!)

It's a shame the British N Gauge market isn't bigger otherwise the approach taken by some of the American producers to provide a set of ready painted parts for the modellers to fit together would be an option.

Happy modelling.

Steven B.

Thorpe Parva

Quote from: Steven B on January 13, 2017, 09:04:54 AM
Quote from: PennineWagons on January 12, 2017, 05:37:23 PM
Alternatively, could we be getting ever-closer to the stage where the Chinese have finally priced themselves out of the market, and production returns to the UK?

Unlikely. Wage for low paid employees in China are still behind the UK minimum wage. According to the Economist the average factory worker in China earns $27.50 an hour (£22). The UK minimum wage from April will be £7.50 - over £52.5 for a seven hour day.

If there is a move it will be to else-where in Asia to the likes of Vietnam or Indonesia where pay is still very very low. You'll then have a repeat of the current situation were we enjoy low prices for a couple of years before local living standards start to rise and wages increase accordingly.

We all have a modelling budget. Sadly what would have bought two locos now will get you just one. On the plus side the quality of the models has significantly improved. I'd much rather have one of the current class 37s than two of the old ones (although I'm sticking with my older class 31s!)

It's a shame the British N Gauge market isn't bigger otherwise the approach taken by some of the American producers to provide a set of ready painted parts for the modellers to fit together would be an option.

Happy modelling.

Steven B.

Should this read $27.50 per day not per hour?

Newportnobby

#41
Yeah - I think that's a typo by Steven.
Let's hope they don't switch production to North Korea as, rather than send stuff by boat, they're likely to send them by rocket :worried:

red_death

I've looked at the reality of bringing back production to the UK and it is incredibly difficult. Even if you can find the right skills and prepared to use them for very small runs (which N gauge models are) then you are still looking at considerably higher wages (which aren't offset by savings or efficiencies of being in the UK).

Rapido also looked at bringing production to N America and reckoned a minimum of 3-5 times the cost of producing in China.

We seem a little fixated on Chinese wages (which essentially came from one statement by Bachmann), in reality it is a combination of factors, but the dominant factor at the moment is post-Brexit vote currency weakness in the GBP.

Cheers, Mike



Carmont

Quote from: newportnobby on January 13, 2017, 10:34:08 AM
Yeah - I think that's a typo by Steven.
Let's hope they don't switch production to North Vietnam as, rather than send stuff by boat, they're likely to send them by rocket :worried:

Assume you mean North Korea? Vietnam has been unified for a wee while now  ;)

Steven B

#44
Quote from: Thorpe Parva on January 13, 2017, 10:09:42 AM
Should this read $27.50 per day not per hour?

Yes, my mistake. I've edited my posting to correct the pay rate from per hour to per day. If it has been $22.50 per hour I'd be tempted to move to China and start working in a model railway factory!

Happy modelling.

Steven B.

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