Conspiracy theories are just more fun…[:-,]
Stix!
I wish I had your problem![(-D]
Dave
The cause could be even simpler; the economy. With the economy tanking, ever rising food, gas, energy costs from one of the hottest summers on record, maybe people have had less discretionary income.
Never noticed, I model Steam/diesel transition. However if this trend continues, I’m all for it.
Wow!
Ok, just to be clear. I have no immediate plans to purchase this particular locomotive either! But I’m still acknowledging that manufactures will lower prices when it is feasible for them to do so.
I think it’s somewhat close-minded and even selfish to simply say something to the effect of ‘that doesn’t count because it’s not something I want’.
The fact remains that this example demonstrates that if a manufacturer/importer can lower it’s MSRP, they do. It doesn’t matter if it is on an item that you want or not. In this particular case, they were able to produce such a large quantity that they were able feasibly order a larger production run which lowered their costs and subsequently the MSRP.
In the words of Harry Hoo from “Get Smart”: Amazing
Kyle, you are taking Athearn at its word that it was able to secure a better production cost so it is passing the savings along. That may or may not be true.
In the same statement, Athearn goes on to say that it has plenty of room for additional preorders. So, it may well be that in spite of what Athearn says, it over produced the run and now needs to lower the price to encourage additional orders. That is what is known as the law of supply and demand.
As far as other forum members being close minded and even selfish because they don’t need or want the specific locomotive, I disagree with you. You started the thread to point out the fact that Athearn was lowering the price on a specific locomotive. Perhaps people would be more impressed if Athearn announced an across the board price reduction on its entire line of locomotives.
Rich
Hi!
To the OP… Richhotrain is certainly on the right track!
I would be the RR that Athearn overproduced and is stuck with a container or two of surplus locos. That may be fine for those in need of the locos in question, but as I model the early '50s, it means nothing to me.
Broadway Imports (BLI) makes pretty nice locos, particularly steamers. I bought several at $300 or so each when certain issues came out 10-12 years ago. A couple years later they had a sale on them, for about half price as I recall. Those of us that already bought got a very short end of the stick. Yup, they had over produced and needed to liquidate surplus inventory for whatever they could get.
While it is nice that Athearn reduced prices on select locos, it only matters if you are in the market for them. There is a definite reason for their action, and it is NOT to pass along their savings to you. Trust me…
Hey…at least there is a sale going on on those models…[:-^]
Again; you’re asking/expecting too much. Be glad that this is even a practice. You’re assuming that they overproduced the product when in fact the writing is on the wall (facebook wall that is).
They used the same tooling to produce heritage schemes for which there are several. That’s instantly a large quantity. Furthermore, they are tacking on additional production to do standard scheme (essentially a re-run). Right off the bat they have a large quantity that is being produced and thus the price can be lower. I wouldn’t be surprised if the production run is twice the size of any that preceeded it just because the run includes a multitude of new schemes in addition to a run of standard schemes.
Guess what else works in a similar way in terms of production costs on a particular model…
Purchase of 1:1 scale locomotives and rollingstock [:O]
(I’m pretty sure you’re not an economist so I won’t belabor your understanding of supply and demand)
That’s how it works in the real world that we attempt to replicate. The larger quantity of a locomotive or rollingstock that a railroad orders, the lower the price tag per unit. This is also the reason why railroads will “piggyback” on an order placed by another railroad as it’s cheaper
It’s not a “practice”. It is a one time deal.
They said that they did.
I did not use the word “expect”. I said that perhaps people would be more impressed if Athearn announced an across the board price reduction on its entire line of locomotives.
You don’t need to be an economist to understand the law of supply and demand.
It is pretty elementary.
Ah, well - since I model transition era (1950’s), an AC4400 would look kinda out of place on my layout (and no, I won’t do a “Back to the Future” theme, thanks…)[swg] Now, if they had some two-truck Shays (a la the old MDC ones) with better prices (wouldn’t have to be the old Roundhouse prices, as that was a while ago…), I’d like that much better.
Jim in Cape G.
Notice what is in my signature here…
This thread has gone pear shaped when you get into arguments about semantics…[(-D]
It is pretty obvious, BC, that you are anti-semantic ! [swg][swg][swg]
Sheesh.
Whatever happened to the America where somebody’s word was as good as gold?
What is the big deal?
Athearn has no incentive at all to lie to their customers–that would be just plain foolish–especially because it would eventually be found out.
So why is it we are totally incapable of simply taking what they said as face value truth? Why do we have to read all kinds of garbage into what Athearn said–three pages of crap, with little positive value added commenting.
Is this because few people believe in absolute truth, right and wrong anymore?
Manufacturers aren’t out to price gouge and overprice their models, as some here have assumed for so long. They are trying to make a living and a fair profit, nothing more.
John
Perhaps our resident economists can tell us how many models is made from (say) 50 tons of material?
Its alway fun to hear “supply and demand” but,never production cost per piece and we all know that’s a well hidden factor…
The one I was reffering to has been on Athearn’s site since April, of last year. It had a specified date, then it switched to TBD this year with the factory in China having it’s issue. Still TBD, and for me this is kind of a much needed unit.
http://www.athearn.com/Products/Default.aspx?ProdID=ATH98210
I say “supposedly upcoming” as in, it may not come, or it could come whenever. (with my luck when someone releases something like a BN C415)[(-D]
The engine you link to is instock…
Or are you waiting on another number?