bachmann flextrack

[goscrewyourselves]

The really sad thing is that while the manufacturing companies, be they in China, Ethiopia, Taiwan or Back a Burke, use cheap labor to keep costs down, the company selling the stuff doesn't. What I am getting at is, if it cost $10 to manufacture something and the selling company sells that end item for $25 and then the manufacturing company gets cheaper labor, reducing their costs to say $7 per item - the selling company doesn't/wont reduce their selling price.

Labor costs are very relevant BUT corporate greed and indecent bottom lines are the real problem.

 

[Boris]

G'day all.....China manufacturing....Dollar driven , cheaper labour is how it is...sadly....ve ....Has Bachmann bought out Atlas or has Atlas just sold the Flexi track rights to them..?.........Unless I one day decide to build another layout or double the size of my current one , it'll be a while before I need more flexitrack so I'll watch with interest how Bachmann's version goes for others....TIMES ARE A CHANGIN'...as they say....Cheers Rod

Hey Rod, Kader (Bachmann) has not bought Atlas, nor does Kader (Bachmann) have the right to make Atlas Flexi track. Atlas is alive and as well as anyone living or conducting business in New Jersey can be . Atlas has found another manufacturing source, and is having their track manufactured for them, but distribution is sporadic. I believe, that Kader (Bachmann) has used patented, time honored, Chinese Product Cloning technique, to produce similar products. It is a free market, and as long as the product is acceptable, and the price is right it will sell. The Robber Barons weren't limited to the Industrial Age .

Joe

 

[MooMan]

The really sad thing is that while the manufacturing companies, be they in China, Ethiopia, Taiwan or Back a Burke, use cheap labor to keep costs down, the company selling the stuff doesn't. What I am getting at is, if it cost $10 to manufacture something and the selling company sells that end item for $25 and then the manufacturing company gets cheaper labor, reducing their costs to say $7 per item - the selling company doesn't/wont reduce their selling price.

Labor costs are very relevant BUT corporate greed and indecent bottom lines are the real problem.

Well, why should they?

Look at only one side of the coin all you want and complain. Call it crooked business practices that you aren't saving an additional $3 if you feel the need.

Capitalism has it's pros and cons, but realize that extra bit of money isn't necessarily going into the pocket of the CEO come bonus time (refrain from citing any such references, it pisses me off too when a failing company gets bailed out by my tax dollars while the CEO makes MILLIONS in bonuses at the same time ... I get it) it is additional Capital that can and does get used to improve the company. Be it used for R&D (which is very expensive), or for tooling upgrades, or to employ more workers, or company expansion, etc etc. A company must continue to make money (fiscal growth every year) if it wishes to survive.

Besides, it's their product with a marketable demand. Seems selfish and silly to complain that because they found a way to save a few more dollars that they should instantly pass it on to you. If it's corporate greed to make money and not cut you in on the savings, is it not then personal greed to complain that you aren't saving that extra bit???

 

[norgale]

It's the American way of business. "Do unto others before they do unto you". Ha! I love that saying. There's another old saying too; It's the Golden Rule that he who has the gold makes the rules. Pete

 

[Ken G Price]

MooMan, Good post. While not the perfect system, capitalism is the best we have at this time. All of the others have fallen by the wayside for many reasons.

Since I do N-Scale, with Code 80 track, this does not really effect my modeling track wise. Though the M&A among the companies in the model rail business is of interest to me.

 

[Iron Horseman]

The really sad thing is that while the manufacturing companies, be they in China, Ethiopia, Taiwan or Back a Burke, use cheap labor to keep costs down, the company selling the stuff doesn't. What I am getting at is, if it cost $10 to manufacture something and the selling company sells that end item for $25 and then the manufacturing company gets cheaper labor, reducing their costs to say $7 per item - the selling company doesn't/wont reduce their selling price.

Labor costs are very relevant BUT corporate greed and indecent bottom lines are the real problem.

I don't think there is anything "sad" about this at all. That is a very umm limited view of how the economics of a capitalistic system works in general. This thing everyone likes to call "Corporate Greed" is the thing where raises and bonuses for the people who work for those companies come from, it is the thing that counters inflation, it is where R&D dollars come from, it is the thing that attracts venture capital, and also where all the money for these foundations for charities come from. The purpose of a corporation is to make as much money as is possible for the owners be that a single person or many share holders. A company must make more money every year just to keep up with inflation and taxes either by raising prices, reducing costs, or increasing market share. I cannot think of a single person who (in their right mind) opens a business in order to break even and make a minimal salary.

The problem in the model railroad industry is that the market is so small and limited, normal mass markets supply and demand economics don't work. If every one in the world wanted an EMD F unit in HO, we would be good to go. But as you know, not even 1/2 of all the model railroaders in the USA, let alone the world, want one. So limited runs and high prices will remain the name of the game, until someone figures out something more profitable.

Now will Bachmann's entry into the flex track market push the price toward the zero profit point. I doubt it, but who knows.