[Purley Oaks]

QUOTE (34C @ 30 Sep 2008, 11:10) <{POST_SNAPBACK}>Hornby mention in their current shareholders annual report that getting timely production capacity has been a challenge. When production capacity is tight, you have to look at what will yield maximum profit from the available capacity. That means concentrating on the fastest selling lines, and if the HST, T9 and Schools (none of which have any competition) go really well, the business decision would be fairly obvious...

I guess that Bachmann and Hornby have got their 2009 catalogues well underway by now, so the current economic climate could see a significant reduction in new models for 2010; neither manufacturer will be taking chances with their new models.

mal

 

[Purley Oaks]

QUOTE (34C @ 30 Sep 2008, 16:14) <{POST_SNAPBACK}>That is a whole other thing! There's nobody out there who can predict exactly what is going to happen. While a manufacturer is still employing an R+D team they can still be busy with the process of developing new models, even if it is not certain when those models can be put into production. Bear in mind that it is new introductions that generate a large proportion of a model manufacturers sales over the first couple of years from launch. Without new models in the pipeline there is no potential for strong future profits: so it's a risk worth taking to keep the new model development going. If the market holds up, all well and good, if there is evidence of reduced spending then the rate of introductions runs somewhat slower.

Funny thing about recession, it is very uneven in its' effect. Some businesses actually do better, particularly those that deal in reasonably economical entertainment and fantasy. People can't afford the fancy holiday or other costly luxuries, so those businesses feel the pinch; but people still want fun, and if it can be found at a lower price they will still spend on it.

Quite agree; what I was trying to say is that they'll have to be much more circumspect with new model decisions to be certain of good sales. We should be chatting about this over a wee pint of heavy.

mal