Hornby Price Increases Part 2

[E100]

It does strike me as odd that there are TT:120 discounts almost across the whole range (not necessarily every single SKU but a large proportion) at some of the retailers. Especially as this is off the back of the price increases. It strikes me an classic 'Sports Direct' strategy, inflate the RRP and then offer a discount.

 

Does this run counter to the positive TT:120 picture that is being painted by the various market/shareholder reports? Not necessarily, as we don't know the numbers/ margin etc, but it doesn't strike me as being hugely financially savvy and seems to be the age old issue of an overly optimistic view of demand in general across the product line.

[davidw]

 Hornby have huge losses. Clearing shelves and cutting RRP, to generate revenue is only a short term answer. Hornby have made a huge and risky investment in TT. That  pay back with take time. 

The bottom line is all the shareholders will be interested in. I've no doubts that they'll be looking at what overheads can be safely cut

As modellers  we could be impacted by model cancellations as opposed to postponement or delays. 

Though decisions ahead.

[smr248]

30 minutes ago, E100 said:

It does strike me as odd that there are TT:120 discounts almost across the whole range (not necessarily every single SKU but a large proportion) at some of the retailers. Especially as this is off the back of the price increases. It strikes me an classic 'Sports Direct' strategy, inflate the RRP and then offer a discount.

 

Does this run counter to the positive TT:120 picture that is being painted by the various market/shareholder reports? Not necessarily, as we don't know the numbers/ margin etc, but it doesn't strike me as being hugely financially savvy and seems to be the age old issue of an overly optimistic view of demand in general across the product line.

Your first sentence is not quite correct.  It is not across the whole range - it does not include the most recent releases or any of the wagons.

After 2 years of TT, it seems that they're getting rid of some of the surplus TT stock rather than storing it like some sort of financial nuclear waste.  Presumably they aren't paying someone to take it off their hands so they're making some money out of the deal.

[Dunsignalling]

The crux of the matter is exactly the same problem Hornby has had through several ownership/management regimes.

 

They are incapable of accurately matching production to demand, and that applies to TT-120 just as much as it does to OO.

 

Their traditional timetable of announcements is tied to issuing a catalogue every January, and all that is completely incompatible with the schedule the factories that make their products work to.

 

Hornby need to make their minds up which is the more important contributor to the bottom line; obtaining the optimum return by making and selling the right quantities of model trains  or selling catalogues....

 

Edited October 4 by Dunsignalling

[E100]

50 minutes ago, smr248 said:

Your first sentence is not quite correct.  It is not across the whole range - it does not include the most recent releases or any of the wagons.

 

In my defence I did say almost but you are correct in that most stuff in the past ~6-12 months is excluded.

[adb968008]

7 hours ago, ColinB said:

Ok, I honestly don't get this. Hornby increases its prices on the 1st September by about 10% most notably on TT120 products, now it is October and they have many on sale with 15% discount. Why? If it needed to raise prices to cover current costs then why suddenly discount them.

Its one of the oldest tricks in the sales book.

 

increase the price, discount it back.

 

People think there getting a bargain, and the seller is getting the original price they wanted.

 

It shakes the money tree as the offer is time limited.

 

 

[spamcan61]

4 minutes ago, E100 said:

 

In my defence I did say almost but you are correct in that most stuff in the past ~6-12 months is excluded.

The TT:120 HSTs were only released around May, so not yet 6 months old but already 40% off. Not much incentive to pre-order or buy on release at near RRP.

[adb968008]

49 minutes ago, Dunsignalling said:

The crux of the matter is exactly the same problem Hornby has had through several ownership/management regimes.

 

They are incapable of accurately matching production to demand, and that applies to TT-120 just as much as it does to OO.

 

Their traditional timetable of announcements is tied to issuing a catalogue every January, and all that is completely incompatible with the schedule the factories that make their products work to.

 

Hornby need to make their minds up which is the more important contributor to the bottom line; obtaining the optimum return by making and selling the right quantities of model trains  or selling catalogues....

 

Why not make the catalog like Panini stickers.

 

Then as the year progresses they can release stickers of what actually arrives so by year end people can have an accurate catalog of whats actually been made.

 

Catalog is fiction anyway… anyone got a 2023 Deltic yet ?

 

its not just making the right quantities, its about making the right supporting range…

 

anyone got any maroon mk1’s to go with that Deltic ?
Theres a ton of useless 4 wheelers in pregrouping with nothing to pull.. 

Maybe they can do a buy a Deltic get 20 free SECR 4 wheeler bundle ?

Edited October 4 by adb968008

[spamcan61]

1 hour ago, adb968008 said:

 

Maybe they can do a buy a Deltic get 20 free SECR 4 wheeler bundle ?

Maybe chuck a couple of Bulleid Brakes in there too.

[AY Mod]

1 hour ago, adb968008 said:

Why not make the catalog like Panini stickers.

 

 

Beatties used to do it about 45 years ago across the manufacturers. If you were a club member you'd get the stickers/pages each month as stock became available.

 

[woodenhead]

17 minutes ago, AY Mod said:

 

Beatties used to do it about 45 years ago across the manufacturers. If you were a club member you'd get the stickers/pages each month as stock became available.

 

I had one of these, it was great to look through, but not quite so many model trains to choose from back then and it was Hornby, Wrenn, Lima, Mainline, Airfix and Joueff, with Fleischmann in with it's 1:87 offerings.

 

Still I enjoyed looking at it and adding in the changes, Pannini style.

[woodenhead]

Hornby discussing their TT flash sale

 

[adb968008]

Not sure ive seen a B1 thread, but this peaks my interest..

https://uk.Hornby.com/community/blog-and-news/engine-shed/symphony-stadler-and-steam
 

B1 61306 Mayflower..

 

Quote

LNER Thompson B1 Class No. 61306, named ‘Mayflower’, is one of two of the class to have survived into preservation. Currently owned by Locomotive Services Group and operating on rail tours and steam galas, our One:One Collection B1 ‘Mayflower’ model depicts the locomotive in early British Railways use.

 

This is the first decoration sample model and is quite good, but it requires two amendments.

Firstly, and most importantly, the level of sheen of the ‘Darlington Green’ body shell needs to be increased to better represent the reflectiveness of the metal boiler. 

First Ive heard of this but an interesting development…. Previous releases have all been plastic boilered. A Metal boiler is a positive development..

 

secondly..

 

Quote

Secondly, the separately applied ‘Mayflower’ nameplates aren’t fitted straight on both sides of the smokebox. Unlike on other models where these are accessory bag items, on ‘Mayflower’ these will be factory-fitted due to the difficulty of neat customer application on the curve of the smokebox. 

My issue is the conflict between “early British Railways use” and the fitting of nameplates… 61306 was never named in early British Railways use, its nameplate (ex 61379) was fitted in preservation, when it was painted as 1306 in LNER green and named in 1970 through to 2015 when it went for overhaul.

 

Its only been as Hornby has modelled it since Jan 2019-June 2022.. even then it had OHLE flashes on it.

 

So as depicted of this model its in a condition its never been if they fit the nameplates… thus reducing interest for 1948 modellers, who removing the plates may leave clean up work! Of course I suspect much interest will be in its 2024 era, in which case it needs an Air Pump as well as Air Brakes, and OHLE flashes etc.

 

 

 

Edited October 4 by adb968008

[Robin Brasher]

17 hours ago, AY Mod said:

 

Beatties used to do it about 45 years ago across the manufacturers. If you were a club member you'd get the stickers/pages each month as stock became available.

 

I had one but I have not kept it.