Hi Fred:
My observation:
The economy was booming.
The train manufactures over produced for the Large Scale Market and there were incredible mind blowing sales of product being dumped available through the mail order dealers or at the large scale train shows.
The economy has now gone bust.
Now people ponder, why did I buy that? Reason: incredible sale prices.
So we all bought way more than we need, who could resist those blow out prices ? We were all like children at Christmas.
Now look at the LOW prices at which the formerly highly sought after and highly priced LGB engines and rolling stock are being sold at on ebay.
There has even been give away pricing of brass locomotives through the mail order dealers.
The money “invested” in locomotives / rolling stock is not recoverable even for the “highly collectable and limited edition” items.
This is fine as long as we understood at the time of purchase that our trains are depreciating items.
What is in store for the future?
Bachmann ON30 sales exceeds their large scale sales. Bachmann will do just fine but my guess is we have seen the end of future new large scale locomotive design offerings. They can’t build a reliable large scale locomotive drive at their required wholesale price point. The Annie will remain a future large scale locomotive product offering.
USA Trains’ high quality and Charles Ro business knowledge will ensure a future for USA Trains. Production will be limited until the economy recovers.
Aristo Craft medium price range and Lewis Polk’s years of experience will also ensure a future for Aristo Craft. Production will be limited until the economy recovers.
Accucraft’s Museum quality brass will continue to sell in limited production runs. There are still lots of wealthy Americans. It is middle class America which is getting pummeled and thrown out of work onto the streets.
LGB overproduced and alienated their collectable items clientel. I don’t believe there will be a LGB recovery of sales in America when LGB is refinanced. One might as well buy Accucraft / AML scale brass than buy comparatively priced but out of scale LGB plastic locomotives.
Everyone has overbought because we enjoy trains and have no resistance!
The dealers will maintain minimal stock until their sales recover. They are not going to stock dead inventory to pay the Banks unnecessary loan interest.
Bye for now
Norman