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In a trading statement released today, Hornby have said that their primary focus is on continuing to maximise our revenues across all markets. Hornby have already raised prices in order to mitigate the effects of the weak pound and they say that "... it appears that these increased prices will be accepted by the market."
They have made it clear that if sterling falls further, then prices will rise again this year.
Apparently their pre-Christmas sales were down due to uncertain retail orders, but sales picked up just before Christmas.
Hornby say that Airfix and Corgi growth is up - and that is understandable as those companies were at rock bottom - but they don't mention the train and slot car brands.
Chairman, Neil Johnson commented:
"Our strategy of expansion in Europe and across additional hobby-based brands continues to provide a broader revenue and profit base.
"We are pleased with the performance of the Group in what was generally a difficult pre-Christmas period. Strong demand in the early weeks of 2009 gives us further confidence that our hobby-based businesses will continue to demonstrate their defensive characteristics in what is likely to continue to be a challenging economic climate."
After receiving Christmas sets, can kids be expected to pay over £35 for a slotcar or £100 for a model railway locomotive?
Or is it the middle-aged collector who is expected to carry on paying whatever it costs to get the new range every year.
Like it says at the top, Hornby are focusing on maximising revenues now - A bit of a rough statement for the customer in these times, One wonders is consolidation and redress is a better option.
Do they have a long term goal? Does that goal favour shareholders or customers...?
Do we just accept these price rises?
