The spiralling cost of EMU's

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BrightonMan
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The spiralling cost of EMU's

Postby BrightonMan » Tue Mar 02, 2021 8:52 am

Can anyone explain to me why the price of Bachmann EMU's has gone through the roof recently? Less than a year ago I bought a new 2EPB from TMC for £130. This included their value weathering so the actual price was £110. Now that I want to add another one to the fleet I find that the price has increased by nearly £100, in a year! The 2HAP's are even more, I've seen them retailing at £260 (this is analogue, not DCC or sound-fitted). Now I know that all prices have gone up recently but this seems excessive.

Suzie
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Re: The spiralling cost of EMU's

Postby Suzie » Tue Mar 02, 2021 10:00 am

I think it must be supply and demand. Bachmann are a bit notorious for making things, and if they don't all fly off the shelves immediately dumping them at low prices and then complaining that they don't sell, just before the demand picks up and no one can get them.

EMUs were ten a penny just before the Great Model Railway Challenge at excellent prices (brand new in box 4-car 350 for £80!), but immediately after you just could not find them anymore, or any EMU, at any price - all sold out.

I know that Bachmann are running a business, and have to make profit, but I think both Bachmann and us the customers would all be much better off if there was some more stability in the supply chain. Bachmann are producing some very nice looking models but they are not being fully appreciated due to supply constraints and Bachmann are not receiving the full value for what they are making. EMUs have to be the future, they are what people are going to want to buy because they are what the railway has become. I don't know what the answer is.

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Bufferstop
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Re: The spiralling cost of EMU's

Postby Bufferstop » Tue Mar 02, 2021 11:10 am

They are imported and so subject to changes in the exchange rate. In what currency do the manufacturers, rather than Bachmann set their prices?
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Bigmet
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Re: The spiralling cost of EMU's

Postby Bigmet » Tue Mar 02, 2021 1:33 pm

Bufferstop wrote:They are imported and so subject to changes in the exchange rate. In what currency do the manufacturers, rather than Bachmann set their prices?

Kader, Bachmann's parent business, price their Chinese production in USD. That's only marginal in effect.

From a customer perspective, unfortunately there's no rhyme or reason to the pricing. These goods are discretionary purchases, and subject to the whims of fashion. What's 'hot' or the 'must have' this year may well be nowhere next year. So all the effort goes into extracting maximum revenue while customers are willing to put up the money, and then sell off any remnants.

As a customer, you have to make your own value assessment. I am increasingly motivated to wait a year or so for any reductions; or another year or two, for the s/h to appear after the novelty has worn off. This applies to all the manufacturers.

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Bufferstop
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Re: The spiralling cost of EMU's

Postby Bufferstop » Tue Mar 02, 2021 2:24 pm

Kader will be facing increased labour costs as their employees continue to aspire to the sort of pay levels enjoyed in the west. Lyndon Davies (Oxford, Hornby) may yet find his dream of onshoring production becoming a reality!
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BrightonMan
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Re: The spiralling cost of EMU's

Postby BrightonMan » Tue Mar 02, 2021 3:59 pm

Bigmet wrote:As a customer, you have to make your own value assessment. I am increasingly motivated to wait a year or so for any reductions; or another year or two, for the s/h to appear after the novelty has worn off. This applies to all the manufacturers.

I tend to agree. If retailers find they are not shifting at that price they may start knocking them down. I'll wait and see.

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stuartp
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Re: The spiralling cost of EMU's

Postby stuartp » Tue Mar 02, 2021 7:35 pm

The same reason the price of an 'average' layout loco (4-6-0 steam, Type 2 deisel) has gone from just over £100 a couple of years ago to nearer £200 now. China is no longer a source of cheap labour and the cost of shipping from the far east is through the roof (google 'container shortage').

Bringing it back to the UK won't help either, unless you want to be paying £500+ a loco. Even Airfix still produces overseas and their production consists of watching sprues drop off an injection moulding machine and putting them in a bag, not detailed manual assembly requiring skilled labour.
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