[Gary]

Bachmann model railway production worldwide exceeds Hornby's by a factor of 10.

They are the largest model railway company in the world.

2 Years ago Bachmann were rumoured to have manufactured 1.3m trains sets for their global customers. Hornby produce around 100,000 every year mainly for UK consumption.

The Bachmann earnings will overshadow anything that Hornby come up with.

£50-£60m per year?

Mattel are the largest toy company in the world making around £150m per quarter and with £600m of cash in the bank!

Lets face it. Hornby are a small company when you start comparing things...

You do have to wonder how Marklin could get it so very wrong?

Happy modelling
Gary

 

[Gary]

QUOTE Note. I was wrong their sales are only around £36

Bachmann produced 1.3m sets two years ago and this info was published on Pat hammond's site.

Now Bachmann do trade under a number of different names and produce models for the Asian model railway market, China, Australia and the USA. They trade as Lilliput in Europe and possibly have other European operations aswell.

Whose sales are £36?

Notwithstanding all this I am just grateful that both Hornby and Bachmann UK are not faceless conglomerates, do speak directly with customers at model railway shows, do listen to customers, and do produce what customers want.

Hornby turnover has doubled in 6 years and no doubt Bachmann UK turnover has advanced also.

This success is down to the fact that both are listening companies and both appear to have their fingers on the pulse.

Long may this relationship between Hornby and Bachmann UK and the railway modelling community continue!

Happy modelling
Gary

 

[Gary]

Here is a link to the Bachmann corporate website:-

http://www.bachmannindustries.com/

And I can see where Dennis got the Bachmann £36m annual turnover from and this figure appears remarkedly small!

Assets of about £90m are pledged to banks to secure banking facilities granted to the group which is further evidence that something is not right with the above figure.

Note the number of subsidiaries not 100% owned by Kader Holdings. The results only relate to Kader Holdings. Bachmann Industries Inc (USA) shares are 100% held by the subsidiary and they may have their own set of accounts.

Happy modelling
Gary

 

[Gary]

QUOTE My gut feeling is that while the British hobbyist may have a smaller budget and maybe a narrower focus than their American counterpart they are very loyal to companies that they feel are addressing their market in both subject matter and price. Hornby seems to get it right. The only wish I have is that they made more vintage steam locomotives.

Now we can have a proper discussion.

Have Hornby and Bachmann got it as right as their corporate success would suggest?

Is Dennis right about the narrow focus of the UK modeller?

Are we only interested in those subjects that are brought to us by Hornby and Bachmann?

Dennis seems to be saying that the American modeller has a global interest and will buy up everything and anything from everybody.

And that the UK modeller will only buy UK outline from Hornby and Bachmann (and Dapol and Peco).

Doug has suggested elsewhere that the French will only buy Jouef.

I remember buying Playcraft by Jouef from Woolies whan I was a youngster in the 1960's because it was cheap so Jouef has a few memories for me and they did do the odd British outline subject.

So is this a European thing?

Happy modelling
Gary

 

[Gary]

QUOTE It's something of a no win situation because the continental modeler (German) has such high standards that they are almost forcing this situation upon their own manufacturers

Maybe there are a large number of potential wanabee continental modellers who would welcome UK type budget prices and standards?

Is there a European equivalent of Smokey Joe? This is one of Hornby's best selling models of the last 23 years and still in production.

Happy modelling
Gary

 

[Gary]

I was thinking more the stand alone Smokey Joe which Hattons list for £23. Is there a Euro equivalent of that?

The Hornby Smokey Joe set contains a track mat, track pack A (points, siding and buffer) and 4 wagons adding value to the set. An equivalent set to the Trix set is around £40 to £50 in the UK and even lower in the USA where volumes are much higher.

From a starter point of view and getting new blood involved the UK have got it right.

Am I right or wrong?

Happy modelling
Gary

 

[Gary]

QUOTE Having just looked at the 50 quid train sets you are talking about on Hattons you get a smaller loco with a plastic body with the Hornby one. The loco with the Trix set has a metal body, is a lot bigger and has a high degree of detail for 10 quid more. So you can take your pick, theres not a lot in it.

€109 is actually £78 at the current exchange rate of about €1.38 per £1.

This is too much money for a starter set with one loco and two wagons. Junior likes to have lots of bits to play with and is not fussed about metal bodies and detail. This is how dad might see it when looking at the packaging. And a big loco looks a bit lonely with just 2 wagons. Better to offer a small loco with two to four wagons.

Maybe the new Marklin owners need to look closely at their marketing department.

Happy modelling
Gary

 

[Gary]

QUOTE The best value by far in my opinion are the Roco digital start sets mentioned before. They are the cheapest way to get into DCC.

Bachmann currently do a DCC starter set for the UK with 2 locomotives and 3 wagons for around £79. Excellent value and with incredible play value.

And Hornby DCC is almost upon us.

The Roco digital starter sets are top value if you are interested in European outline.

You definitely maximise the DCC benefits £ for £ or € for € by entering at the budget end of the market.

Happy modelling
Gary

 

[Gary]

Marklin are in a different situation to Hornby Dublo in terms of 3 rail.

Hornby Dublo had a relatively small range and was not considered to be a collectable at the time.

Marklin have a long history with 3 rail and a large collector base.

Their current 3 rail track actually looks pretty good, has a look of 2 rail about it, although is expensive.

The real issue is that it is totally incompatible with anything else that anybody else produces. And so they can only sell their track system to Marklin users. This limits their market to Germany and expats living outside Germany who have a fascination with Marklin.

When times are tough as they are in Germany, they are unable to compensate for this by large sales in overseas markets where the economic cycle is favourable.

Now I don't know how the Trix brand is doing however I suspect that Marklin make more money out of 2 rail Trix than they do out of 3 rail Marklin. The daft thing is that Marklin is the stronger brand.

I would simply drop Trix and call it 2 rail Marklin. Instant cost savings and instant appeal to new markets.

Maybe the new owners have a similar idea.

Now Hornby do have ownership of the Hornby Dublo brand and trademark. Maybe the time is right for a relaunch as an upmarket version of Hornby with retro packaging.

And maybe Hornby should develope and reintroduce a 3 rail track system so that Marklin have some competition. This should ensure a further healthy increase in Hornby profits!

Happy modelling
Gary

PS not really!

 

[Gary]

So Hornby supply Marklin with more than just Harry Potter kit!

Happy modelling
Gary