Pricing ourselves out of a hobby

SPsteam May 25, 2016

  1. DCESharkman

    DCESharkman TrainBoard Member

    4,410
    3,113
    87
    The common misconception is that all manufacturing going to Asia. It is possible with a bit of strategic planning. The problem is that most of manufacturing is still stuck in the 1950's from a technology standpoint.

    My company started on a kitchen table with seven other frustrated engineers. It now has 488 employees, it has a class 10 clean room operation. It also has a modern computer controlled machine shop and also has 4 different foundries for casting.

    It consistently out performs Asian manufacturers and is worth more now than I am competently run anymore. I am just an engineer, I am not a financial guru needed to properly manage the volume of business. I am proud of the fact that we provide the environment to attract and retain top talent. We have a 98% retention rate. The 2 percent represent retirements, deaths and some that left to be full time home makers.

    It was the strategic thinking of the original seven engineers and our financial guy that built a wildly successful company.

    The fact the Micro Trains has done the same thing is quite encouraging. It would be nice if others could see the value in retaining the manufacturing here. Atlas didn't want to take on the expense of updating their manufacturing and went off shore. With all the problems they have had with factories and tooling in China, I wonder if it is still the right decision.

    So keep it up Micro Trains, you show that it can be done in the USA and shame on the rest for not trying!
     
    wpsnts and Maletrain like this.
  2. BarstowRick

    BarstowRick TrainBoard Supporter

    9,513
    5,679
    147
    If I was a manufacturer for toy train products I'd be talking to David aka Sharkman about making this happen for me.

    Todays, technology supersedes anything we've done in the past making it possible to rebuild parts for Jay Leno's car collection, old steam engines, deceased aircraft and allowing them to resurrect anything they want.

    David's operation is as up to date as any in the country. So what are they waiting for?
     
  3. glennac

    glennac TrainBoard Member

    717
    159
    20
    The trouble with resin 3D printing is still volume. It still takes way too long to produce one item. Injection molding can't be beat for speed and efficiency.

    It will be a long time before 3D printing can compete on volume compared to injection molding and it's relatively cheap cost.
     
    DCESharkman and Kez like this.
  4. Joe D'Amato

    Joe D'Amato TrainBoard Member

    1,749
    352
    38
    NOOOOOOOO! I have a lot of experience dealing with China. I worked for a couple of toy mfgs and with Disney doing product development and in the long run you don't save much. We do a product here we can control the tooling time, the quality of the product and delivery...none of them are easy once they go outside the plant. You spend less overhead time managing the unwilling and forcing schedules, materials and outsourcing. That costs a ton of money that never seems to make it to the bottom line. You might have to run a few cycles to get your ROI with what we do in the plant, when it comes from china, it's a blind guess. We used Sanda Kan and got royally screwed long before Kader took them over and kicked us out with everyone else. Now we only do a very few things there (z track)with a new company that seems to want to make amends for the way business was conducted in the past. Still being vigilant though...fool me once? As long as I am here I won't allow any more exposure than necessary. That's an easy promise to keep, because management has always thought that. That said, there are some economies...powered chassis are probably always going to be less there because of the labor. Parts are cheap...putting them together is another matter.

    Joe
     
    jpwisc and mtntrainman like this.
  5. Joe D'Amato

    Joe D'Amato TrainBoard Member

    1,749
    352
    38
    I'd love to see this technology speed up, wow, what you could do. We have 3d here and for making check parts and patterns it's great, but production is awhile away.

    Joe
     
  6. Maletrain

    Maletrain TrainBoard Member

    734
    340
    18
    3D printing is in its infansy. Someday, we will probably have the ability to not only print in color, but in multiple materials as well. Think about running copper "wiring" through plastic shells that are already "painted" the desired colors. Effectively, the "assembly" gets automated to some degree.

    But I don't think I will last long enough to see it, and probably couldn't afford the early products, anyway.
     
  7. Doug A.

    Doug A. TrainBoard Supporter

    3,509
    161
    59
    I don't really think the price of the hobby now is impacting much, nor do I think it's drastically different from a historical perspective. I do think there has historically been a hoarding mentality to the hobby that just doesn't work anymore....there's too much variety, and the quality has mandated pricing commensurate with what that quality costs to produce.

    I don't really buy the story that prices are keeping people out of the hobby. (As has been mentioned...go to a train show and that "no interest" theory is shot down pretty fast) There are PLENTY of great quality items available for much less $$$ than current state of the art. So, you can't have your cake and eat it to. Either the proto fidelity and details and electronics doesn't matter to you in which case you have MANY options available at a cheaper price. Or, it does matter to you and you are simply choosing not to buy at that price because maybe you have unrealistic views of how the market works, (aka you're too cheap! lol) or perhaps you can't shake the aforementioned hoarder mentality and only buy one instead of six.

    That's not to say there aren't some real headscratchers like the Athearn ex-MDC tank cars or Atlas 90T hoppers that always seem to rally the troops. But the reality is....they sell or they wouldn't continue to be made. Their tooling is "good enough" that newer, better quality decoration and knuckle couplers is enough to keep the assembly line rolling. But for those that don't want to pay to play, you still see the older ones at train shows all the time for a few bucks each. Want a crude oil train? Sandwich a bunch of black MDC tank cars between a couple of Delaware Valley airslides and some Bachmann Dash 8's.....99% of folks at the train show your running at would be saying "hey cool, a tank car train like we saw the other day!"

    At the end of the day, it has never been a cheap hobby. You just have to have priorities...well at least most of us do. ;-)
     
  8. Point353

    Point353 TrainBoard Member

    2,881
    7,612
    71
    Except when the all of the "options" on a specific model are made mandatory.
     
  9. BarstowRick

    BarstowRick TrainBoard Supporter

    9,513
    5,679
    147
    I've sounded off once to often here on this thread. My view of things hasn't changed and isn't likely to.

    So, in my defense. I didn't say that did I? I mean this isn't some sort of mock war where the participants are playing battleship...are we?

    Old farts (that's me) who have retired whether it be for medical reasons or we were simply... put out to pasture. Most of us are on a set income below the standard of living
    we talk about here.

    For those of you still plugging along and bringing in a sizable income I salute you. On the flip-side, there are plenty of us who aren't.
    I can only hope the haves... can support the hobby .

    What worries me most!!!! If pricing continues it's upward spiral. If inflation continues at the rate it has in the last 8 years. If it continues to cost me more then my income each month.
    This beloved hobby, will once again become a rich man's hobby. It was such when I got serious about model railroading at the age of 12. But, that's another story for another time
    and place.

    You won't mind if I get back to recovering, restoring and making some of those crazy changes to my layout? Affordable changes? What? What? What did he say?

    I know how about a glue factory for the dead horse I/We keep beating to death...huuunh...it already died and is beginning to stink. Decomp is setting in.

    History repeats itself, so should I care?

    Just my two cents and I could handle some change.
     
    DCESharkman likes this.
  10. ladybngnfan

    ladybngnfan TrainBoard Member

    104
    24
    13
    I'm a fallen flag fan, too. I like BN, GN, MRL, and Milwaukee. And I do like to watch trains from now, too.
     
    BarstowRick likes this.
  11. DCESharkman

    DCESharkman TrainBoard Member

    4,410
    3,113
    87
    Actually there are other similar technologies about t0 appear. Borrowing from the semiconductor sector, there are advances in vapor deposition printing for even finer detail than current 3D printing. It is about 5 to 7 years out but it is looking pretty impressive so far. Current 3D printing is at about the 85% maturity point, meaning the technology is proven and now all that is left is the incremental improvements. The technology is proven, all that will happen from this point are enhancements and alternative implementations of the technology.
     
  12. TwinDad

    TwinDad TrainBoard Member

    1,844
    551
    34
    ooooh! borrowing vapor deposition tech from the chip makers is interesting! You could (theoretically) get some serious nanoscale resolution doing that!
     
  13. DCESharkman

    DCESharkman TrainBoard Member

    4,410
    3,113
    87
    Exactly!

    I am thinking of true vented louvers on the F units as a start!
     
  14. tracktoo

    tracktoo TrainBoard Member

    273
    161
    12
    Functioning whistles. o_O

    OK, I'll admit that I've considered an actual live steam in HO and more recently, in N. The doctor said it will pass.
     
    Kez and mtntrainman like this.
  15. Inkaneer

    Inkaneer TrainBoard Member

    4,343
    1,495
    77
    Look at the bright side. All that rolling stock you bought for ridiculously low prices back in the day are now worth more. I got enough of those 90 ton Atlas hoppers to make a unit train of 100 units. I accumulated them over the years and I don't believe I paid more than $5.00 for any one car. Many were purchased for $2-2.25 so I would guess I spent less than $400 total on them. Add in MT trucks and couplers and enhanced coal loads and those cars today are over $25.00 in value.
     
    BarstowRick likes this.
  16. JMaurer1

    JMaurer1 TrainBoard Member

    2,319
    1,759
    53
    20ish years (or less) from now, we won't even need to go to a store to buy something. We pay for the item and then it prints out on our personal 3d printer, in color. They are already able to print circuit paths inside a 3d printed object and then plug in the PCB that has the components on it (search: 3d printing drones). Look at all of the advances that have happened in the last 20 years...
     
    BarstowRick likes this.
  17. BarstowRick

    BarstowRick TrainBoard Supporter

    9,513
    5,679
    147
    That's true but it won't be me selling off my stock. I will leave that up to my kids. It there's one thing being a mortician taught me, "We don't get out of this alive."

    In the meantime it's get my layout up and running again, add some scenery and get rid of those confounded Rapido Couplers converting to Micro-Trains.

    Are they on the list? You know list of sponsors. Humm, I wonder?

    Oh, before I forget, which happens all to easily these days. Now what was it I wanted to say. Oh, Yes! Got it! The 3D printing and future technology will make things even easier when casting the mold for our toy trains. Just don't expect that to be translated into cost savings for you and I. Not going to happen.
     
  18. RBrodzinsky

    RBrodzinsky November 18, 2022 Staff Member TrainBoard Supporter In Memoriam

    5,685
    2,786
    98
    And, I keep threatening the kids that if they don't treat me right, I will NOT clean out the storage locker (which is half full of stuff from my parents - the other half is Girl Scout stuff and FreeMoN modules) or organize in the house. That will be their job!
     
  19. DCESharkman

    DCESharkman TrainBoard Member

    4,410
    3,113
    87
    Need to give them something to do. I remember having to do that for my grandparents.

    There were a lot of things that are moments in time with them that I still have today.
     
    RBrodzinsky likes this.
  20. BarstowRick

    BarstowRick TrainBoard Supporter

    9,513
    5,679
    147
    Memories, are only good as long as the one with them is still around to share them. But then who listens?

    DGAS committee.

    Funny, in some ways, just to funny.
     

Share This Page