The model train industry's future

Re: The model train industry's future

Postby dileTTante » Wed Feb 08, 2017 11:36 pm

As food for thought I point out that at least one company Soundtraxx manufactures in the US and seems to thrive.

The main factor in offshore sourcing is cheap labour. This is the opportunity for me to share my economic theory. First, manufacturers try to maximize profit by reducing production costs, and the biggest cost is labour. If one is looking for cheaper labour, then the theoretical goal must be $0 cost. The labour force close to ideal would be slaves, but even then the owner must pay for their food and housing. Ideally, labour should be free of charge.

On the consumer side, buyers look for the lowest price for a product. Therefore the ideal is something that costs $0. This would eliminate the need for profit. Raw materials and capital investment are $0.

With these theoretical ideals the conclusion is that everything should be free. Very likely no one takes this seriously. I have presented the idea simply to provide a different economic perspective. Another thing to consider is that human beings are the only creatures who pay to live on the planet. And without free things you would have only microsoft and no raspberry pi.

-Terry C
dileTTante
 
Posts: 691
Joined: Wed Jan 06, 2010 12:37 am

Re: The model train industry's future

Postby Bernd » Thu Feb 09, 2017 9:57 am

Interesting concept Terry and very well put. When you mentioned Soundtraxx as being an American manufacture I remembered that NCE also manufactures their product in the US. They are approximately 50 miles north of me and I personally know the guy that owns it.

There are quiet a few laser kit manufactures in the US plus many others the more I think about it now. They are not as big as Rapido. They are more of the entrepreneurial types.

I still haven't seen any word from other manufactures yet.

Bernd
Image
User avatar
Bernd
 
Posts: 837
Images: 27
Joined: Wed Sep 02, 2015 8:43 am
Location: Rochester, New York

Re: The model train industry's future

Postby ConducTTor » Thu Feb 09, 2017 1:46 pm

I have a feeling we may not hear from others unless/until their prices/product lines get affected. Jason (owner of Rapido) tends to be pretty open so his sharing of his industry view may be the exception. Are any of the model companies publicly owned? That would really be the only way to get into their heads (due to required disclosures, earnings calls, etc.).
What people think: "liberals/conservatives are ruining my country"
What the powerful know: divide and conquer
User avatar
ConducTTor
Site Admin
 
Posts: 8293
Images: 13
Joined: Sat May 23, 2009 4:52 pm
Location: Atlanta GA USA

Re: The model train industry's future

Postby Bernd » Thu Feb 09, 2017 5:56 pm

ConducTTor wrote:I have a feeling we may not hear from others unless/until their prices/product lines get affected. Jason (owner of Rapido) tends to be pretty open so his sharing of his industry view may be the exception. Are any of the model companies publicly owned? That would really be the only way to get into their heads (due to required disclosures, earnings calls, etc.).


I've never heard of model companies being publicly owned. Of course there will always be a first. I think this subject probably won't become news until the present administration starts talk on NFTA, TPP and China trade. You start seeing something at that time. I'm taking a wait and see attitude.

Bernd
Image
User avatar
Bernd
 
Posts: 837
Images: 27
Joined: Wed Sep 02, 2015 8:43 am
Location: Rochester, New York

Previous

Return to General Discussion

Who is online

Users browsing this forum: No registered users and 0 guests

cron