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Offline mike c  
#1 Posted : 08 April 2015 08:27:03(UTC)
mike c

Canada   
Joined: 28/11/2007(UTC)
Posts: 7,865
Location: Montreal, QC
It didn't really occur to me until today, but over the past few months, we have seen the US dollar (USD) gain against the Euro (EUR). A year ago, the exchange rate between the two was around 1.30 USD for 1 EUR. Today, the rate is 0.86 EUR for 1 USD (buy) and almost par for sell.
European model train companies have long done business with Chinese factories and the costs have been billed in dollars and this means that the cost for items has gone up as the EUR has dropped compared to the dollar.

So, a model that cost the company 200 EUR (260 USD) to manufacture and was selling for 400 EUR now costs 260 EUR and the costs must be passed on to the customer.

Some German forums are mentioning that some manufacturers have cancelled models. It was reported that the follow-up models of the Liliput SBB RABe 511 would have double the cost of the original productions and have been postponed or cancelled. There have also been some rumours of companies like LSM possibly looking to cut back on fine details as a way of keeping the costs lower.

I think that this will be a major incentive for companies to bring production back to Europe if the costs are lower, but I am not certain whether the existing manufacturers in Europe have the capacity to absorb all of this potential production.

I have been looking through my collection and have concluded that the list of models that I am still waiting for to complete my collection of trains that I have seen or have ridden is getting smaller and that if I can avoid another trip to Europe, my collection should be pretty much complete with a last few additions.

Of course, the model RR industry will propose new models that will tempt me in the future, that is as certain as the sun rising in a few hours.

Regards

Mike C
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Offline Goofy  
#2 Posted : 08 April 2015 08:44:58(UTC)
Goofy


Joined: 12/08/2006(UTC)
Posts: 8,986
The problem is how to focus about factory placement in difference state...
If Märklin factory was located in USA...?
How would you see the prices of the train models?
If you ain´t not happy with the prices of the trains,you can always simulated model railway via PC games...LOL
H0
DCC = Digital Command Control
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Offline SteamNut  
#3 Posted : 08 April 2015 09:41:37(UTC)
SteamNut

United States   
Joined: 11/05/2013(UTC)
Posts: 488
Here in the US production has moved back for a number of reasons. Wages in China are rising, quality control and more of a demand for goods made in the US. Model prices here increased quite a bit a number of years ago due to that modeling items used to be tariff free but not no more. When the Euro came into existence prices also increased, remember how they were to remain the same? I have one box that has a sticker for 10.50 Euro and below it was a old sticker of 10.50 DM. At least the internet allows one to shop for prices but low prices always mean a good deal.
Offline mike c  
#4 Posted : 08 April 2015 19:24:21(UTC)
mike c

Canada   
Joined: 28/11/2007(UTC)
Posts: 7,865
Location: Montreal, QC
Goofy, maybe it's your understanding of English that could be better, but you seem to have missed my point.

SteamNut, not sure what you are referring to either.

I agree with your point about Wages in China rising, but that is not a major factor in the current situation.
As far as your comment about model prices, that is where you lost me.
At least for European models, the exchange used to be in terms of DM to USD which was about 3:1
When the Euro came in, it was set at roughly 2DM to 1 EUR and it worked out to about 1.12 USD :1 EUR

Goods imported into the USA from Europe and from China used to have duty applied. Since around 2000, this has no longer been the case and model train imports into the USA are now not charged any tariffs. It all depends on the country of origin and the nature of economic treaties between the USA and that country.

During the transition phase, some dealers may have simply badged over DM prices and charged exorbitant prices in EUR, but in my experience, a lok that was selling in Germany for 360 DM went to 180-200 EUR when the change was brought in.

Regards

Mike C
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Offline kimballthurlow  
#5 Posted : 08 April 2015 21:33:32(UTC)
kimballthurlow

Australia   
Joined: 18/03/2007(UTC)
Posts: 6,641
Location: Brisbane, Australia
As usual the following is my simple opinion.

In the long run (as economists love to say) prices of any goods including toys, reflect the balance between demand and supply.

In my lifetime, the balance in regards to most things has changed only once, and that was in the 10-15 years after the 1945 war.
Any goods that were desirable, being in short supply, were expensive, and that included some but not all toys.
Certainly, model trains were relatively more expensive than they are today.

I occasionally buy old models on eBay internationally - run-of-the-mill 30 year old stuff costs way more than when originally marketed, because of long term inflation.
And I see brand new models in the hobby shops in Australia that cost the same, no more.

Across goods of all types, and housing, I see the same prices world-wide.
The exception may be the USA, where some goods and housing seems cheaper than anywhere else.

regards
Kimball
HO Scale - Märklin (ep II-III and VI, C Track, digital) - 2 rail HO (Queensland Australia, UK, USA) - 3 rail OO (English Hornby Dublo) - old clockwork O gauge - Live Steam 90mm (3.1/2 inch) gauge.
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Online H0  
#6 Posted : 08 April 2015 22:19:40(UTC)
H0


Joined: 16/02/2004(UTC)
Posts: 15,251
Location: DE-NW
Hi!

From an (imaginary) American point of view: MRR stuff made in Euroland should be cheaper now. MRR stuff made in China for European companies should mainly keep its price except for rising wages in China and shrinking production runs due to rising prices in Euroland.

From a Euroland point of view: Imports from China or Switzerland are much more expensive (bad for consumers), exports to Dollarland and Switzerland are much cheaper (good for the producers).
Good for German dealers who have e.g. HAG items in stock. Bad for Swiss dealers who have many e.g. Märklin items in stock.
Regards
Tom
---
"In all of the gauges, we particularly emphasize a high level of quality, the best possible fidelity to the prototype, and absolute precision. You will see that in all of our products." (from Märklin New Items Brochure 2015, page 1) ROFLBTCUTS
UserPostedImage
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Offline SteamNut  
#7 Posted : 08 April 2015 23:10:34(UTC)
SteamNut

United States   
Joined: 11/05/2013(UTC)
Posts: 488
I meant to say a low price does not always mean satisfaction. Paying a premium price does not either for that matter. We, the consumer, have to rely on the manufacturer for the quality of goods sold to us. Manufacturers have to do certain compromises in order to keep items affordable and also to make a profit but hopefully in the end they sell us a quality product. Marklin, at least for me, seems to get right more times then not. I really do not care where a product is made but offshore production has been a problem for Marklin and others. As a plumber in the US I avoid buying tools made offshore (China) as they inferior to ones made in the US. The currency used to buy products has been and will always be a game until there is only one currency worldwide (which means never).
Since 2000 there is now tariff charged for items brought into the US however items mailed overseas do not seem to be charged. However if I bring the items back in my luggage I am charged unless I can prove it was a gift.
Model railroading can be quite affordable or quite expensive depending on what one wants or can do themselves. I keep mine analog as converting to digital is out of my range at this time but I may win the lottery this week.
Offline biedmatt  
#8 Posted : 08 April 2015 23:56:56(UTC)
biedmatt

United States   
Joined: 09/04/2012(UTC)
Posts: 1,343
Location: Southwest Ohio
I think I see where you are headed Mike. China does business in US dollars. The Euro is down compared to the dollar. A business that conducts business and figures their budgets in Euros, but subcontracts work to China, has a problem. China wants dollars, so the European companies will need more Euros to do a project then before and possibly more than they had budgeted for that fiscal year. Consequently, projects are being shelved or cancelled because of a lack of (sufficient) capital. I never thought about it from that end, but I understand the situation and why we may not see some products make it to market. It could have a chilling effect on sales if they decide not make something you wanted, making their bottom line even worse.

Edited by user 09 April 2015 12:02:06(UTC)  | Reason: Punctuation

Matt
Era 3
DB lokos, coaches and freight cars from across Europe
But I do have the obligatory (six) SBB Krocs
ECoS 50200, all FX and MFX decoders replaced with ESU V4s, operated in DCC-RailCom+ with ABC brake control.
With the exception of the passenger wagens with Marklin current conducting couplers, all close couplers have been replaced with Roco 40397.
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Offline kiwiAlan  
#9 Posted : 09 April 2015 13:13:45(UTC)
kiwiAlan

United Kingdom   
Joined: 23/07/2014(UTC)
Posts: 8,067
Location: ENGLAND, Didcot
Originally Posted by: biedmatt Go to Quoted Post
I think I see where you are headed Mike. China does business in US dollars. The Euro is down compared to the dollar. A business that conducts business and figures their budgets in Euros, but subcontracts work to China, has a problem. China wants dollars, so the European companies will need more Euros to do a project then before and possibly more than they had budgeted for that fiscal year. Consequently, projects are being shelved or cancelled because of a lack of (sufficient) capital. I never thought about it from that end, but I understand the situation and why we may not see some products make it to market. It could have a chilling effect on sales if they decide not make something you wanted, making their bottom line even worse.


However a typical business will run a US$ account and will hedge against currency fluctuations by keeping funds in that account instead of remitting them back to the base currency of the country of operation. This mitigates the exchange rate fluctuation problem to some degree.
Offline biedmatt  
#10 Posted : 09 April 2015 13:20:23(UTC)
biedmatt

United States   
Joined: 09/04/2012(UTC)
Posts: 1,343
Location: Southwest Ohio
Originally Posted by: kiwiAlan Go to Quoted Post
Originally Posted by: biedmatt Go to Quoted Post
I think I see where you are headed Mike. China does business in US dollars. The Euro is down compared to the dollar. A business that conducts business and figures their budgets in Euros, but subcontracts work to China, has a problem. China wants dollars, so the European companies will need more Euros to do a project then before and possibly more than they had budgeted for that fiscal year. Consequently, projects are being shelved or cancelled because of a lack of (sufficient) capital. I never thought about it from that end, but I understand the situation and why we may not see some products make it to market. It could have a chilling effect on sales if they decide not make something you wanted, making their bottom line even worse.


However a typical business will run a US$ account and will hedge against currency fluctuations by keeping funds in that account instead of remitting them back to the base currency of the country of operation. This mitigates the exchange rate fluctuation problem to some degree.


I am sure many do, but if Mike's report that manufacturers have cancelled product is accurate, then the companies that feed the model railroad market must not hold account(s) in US dollars.
Matt
Era 3
DB lokos, coaches and freight cars from across Europe
But I do have the obligatory (six) SBB Krocs
ECoS 50200, all FX and MFX decoders replaced with ESU V4s, operated in DCC-RailCom+ with ABC brake control.
With the exception of the passenger wagens with Marklin current conducting couplers, all close couplers have been replaced with Roco 40397.
Offline mike c  
#11 Posted : 23 June 2015 06:05:49(UTC)
mike c

Canada   
Joined: 28/11/2007(UTC)
Posts: 7,865
Location: Montreal, QC
The problem is that the USD went from just under a EURO to about 0.70 EUR between 2008 and 2014. In 2014, the Swiss Franc and the USD rebounded against the EURO (translate, the EURO dropped against those currencies), leading to a situation where the Swiss Franc is now about 1:1 and the USD is about 0.88 EUR, an increase of just under 20%. This means that Chinese manufacturers now have to be paid 20% more than they did in 2008. Some manufacturers may have had reserves in USD, likely from sales to distributors or dealers where the invoice was paid in USD, but since Europe, particularly Germany accounts for the lion's share of model train sales, most of those sales were probably in EUR and thus, the companies cannot escape this extra 20% cost for the models.
For a model that the manufacturer ordered from a Chinese supplier that cost them USD390 (EUR 300) and they were selling for EUR 500, that model now costs them EUR 360 and the sale price is probably now at least 600.
It was reported that further models of the Liliput Staedler KISS trainsets would have seen their retail price go from 600 EUR to over 1000 EUR as a result of the change in costs and it seems that this and other models have been postponed or cancelled by manufacturers. There seems to be a rush to find European manufacturers who can handle productions for these companies, but it will likely be difficult as other industries will be competing with model train companies for these production opportunities and companies that commission larger quantities and production runs might have a better ability to get the contracts while the smaller companies and smaller production industries will suffer.
If a company retains the equipment needed to increase it's production, it may have an advantage over other companies. If a company has lost it's internal ability to manufacture, it may be at the whim of the market and may not be able to find a cost effective production source and in that situation, it may find itself out of business because it can't keep it's prices competitive.

Regards

Mike C
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Offline Goofy  
#12 Posted : 23 June 2015 07:15:12(UTC)
Goofy


Joined: 12/08/2006(UTC)
Posts: 8,986
You confuse to see,if the problem was difference.
If other states was vica verse about the economic,would you complain about this??
H0
DCC = Digital Command Control
Offline mike c  
#13 Posted : 23 June 2015 08:27:01(UTC)
mike c

Canada   
Joined: 28/11/2007(UTC)
Posts: 7,865
Location: Montreal, QC
Goofy,

The problem exists for all model train fans because the producers demand to be paid in a currency that has gained a lot of value over a short period. For me it is double, because the Canadian dollar has dropped from 1:1 with the US dollar to 0.81 USD, meaning that prices from US dealers and suppliers are now 20% higher. When you add to this the fact that the USD is now also 20% higher against the Euro, that companies that have to pay the producers for their models in US dollars now have to pay about 20% more in cost, which is passed on in the dealer cost and in turn to the customer in the retail price.
Technically, US customers should not see an increase because their currency has gone up, but because the companies are based in Europe and have increased their dealer costs, the price for US dealers has gone up too. US customers do benefit in that they don't have to pay additional exchange at purchase, whereas Canadians have to pay the additional 20%. Maerklin, Roco, Fleischmann all have Canadian distribution through the US network, so we get double dinged.
Canadians ordering from Europe have to pay the increased Euro retail price, but benefit from the fact that the CAD$-EUR rate has remained pretty stable at around 0.65 EUR to 1 CAD$ and from the VAT export rebate, making European orders cheaper than US orders right now.

The problem is so severe that for some models, the production costs have increased to the point where companies are cancelling projects, either due to concerns that the item(s) won't sell at the price point that they will now have to offer them for or simply because they judge that the project can no longer be profitable for the company.

This does not only affect me, but affects every modeller differently, even you. The cost of models from China or anywhere outside the EU where the transaction was done in USD$ will or has increased by at least 20%. The European companies are not taking this amount out of their profit, but passing it on in the cost. Companies are flocking to find manufacturers in the EU so that they can avoid or minimize this increase in cost, but there are only so many companies in Europe that can perform this work and model train companies have to compete with companies that make electronics, electric goods and other plastic goods for the production slots that may come open. If you think that a 5000 unit run for a model train is going to win over a 500,000 unit run for a razor or hair dryer, you are kidding yourself. This is going to hit our hobby hard, mark my words.

Regards

Mike C
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Offline Goofy  
#14 Posted : 23 June 2015 09:31:19(UTC)
Goofy


Joined: 12/08/2006(UTC)
Posts: 8,986
The real richdom are nature recource.
It gives us work,so we can survive by working.
The symbols like numbers and alphabet are illusion,because you use colour to print symbols.
No matter what you write and present with the numbers as cost for the products.
H0
DCC = Digital Command Control
Offline kimballthurlow  
#15 Posted : 24 June 2015 09:13:18(UTC)
kimballthurlow

Australia   
Joined: 18/03/2007(UTC)
Posts: 6,641
Location: Brisbane, Australia
Originally Posted by: mike c Go to Quoted Post
.....The cost of models from China or anywhere outside the EU where the transaction was done in USD$ will or has increased by at least 20%. The European companies are not taking this amount out of their profit, but passing it on in the cost. Companies are flocking to find manufacturers in the EU so that they can avoid or minimize this increase in cost, but there are only so many companies in Europe that can perform this work and model train companies have to compete with companies that make electronics, electric goods and other plastic goods for the production slots that may come open. If you think that a 5000 unit run for a model train is going to win over a 500,000 unit run for a razor or hair dryer, you are kidding yourself. This is going to hit our hobby hard, mark my words.

Regards

Mike C


Hi Mike,
Thankyou, very interesting reading.

It means that Marklin are sitting in a box seat, as we say.
With well established European manufacturing facilities, and experienced human resources.
However, with currency fluctuations at the mercy of speculation, the advantage may be temporary.

One wonders if their recent offerings from China (Bavarian S2/6 and the Nohab diesels) were the result of either:
1. an offer too good to be true from a Chinese manufacturer, or
2. an over-commitment of their own capacity, that did not allow these models to be made locally.

regards
Kimball
HO Scale - Märklin (ep II-III and VI, C Track, digital) - 2 rail HO (Queensland Australia, UK, USA) - 3 rail OO (English Hornby Dublo) - old clockwork O gauge - Live Steam 90mm (3.1/2 inch) gauge.
Offline RayF  
#16 Posted : 24 June 2015 11:19:18(UTC)
RayF

Gibraltar   
Joined: 14/03/2005(UTC)
Posts: 15,837
Location: Gibraltar, Europe
Hi Kimball,

I wouldn't be surprised if both reasons were valid.

Marklin probably still have a contractual obligation to use the Chinese factories, so they might need to pay penalties if they didn't produce something in them. At the same time the limited facilities they have currently in Europe are probably insufficient for all the new projects they have in hand.

Anders,

I'm afraid I don't understand the point you're trying to make in your last post. Can you be more specific?
Ray
Mostly Marklin.Selection of different eras and European railways
Small C track layout, control by MS2, 100+ trains but run 4-5 at a time.
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Offline Goofy  
#17 Posted : 24 June 2015 13:02:10(UTC)
Goofy


Joined: 12/08/2006(UTC)
Posts: 8,986
Originally Posted by: RayF Go to Quoted Post

Anders,

I'm afraid I don't understand the point you're trying to make in your last post. Can you be more specific?


Pick up a paper and pencil with the ink.
Write 1...10...100...1000 euro.
There you see how to add numbers on the products.
Without the ink,you cannot write symbols.

H0
DCC = Digital Command Control
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Offline kiwiAlan  
#18 Posted : 24 June 2015 13:05:35(UTC)
kiwiAlan

United Kingdom   
Joined: 23/07/2014(UTC)
Posts: 8,067
Location: ENGLAND, Didcot
Originally Posted by: Goofy Go to Quoted Post
The real richdom are nature recource.
It gives us work,so we can survive by working.
The symbols like numbers and alphabet are illusion,because you use colour to print symbols.
No matter what you write and present with the numbers as cost for the products.


Confused Confused Confused Confused Confused Confused Confused Confused Blink Blink
Offline Cyborg  
#19 Posted : 24 June 2015 13:15:20(UTC)
Cyborg

Australia   
Joined: 11/11/2012(UTC)
Posts: 107
Location: Maroubra
He's obviously off his medication! Weird.
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Offline RayF  
#20 Posted : 24 June 2015 13:16:56(UTC)
RayF

Gibraltar   
Joined: 14/03/2005(UTC)
Posts: 15,837
Location: Gibraltar, Europe
No doubt something is lost in translation....
Ray
Mostly Marklin.Selection of different eras and European railways
Small C track layout, control by MS2, 100+ trains but run 4-5 at a time.
Offline Ian555  
#21 Posted : 24 June 2015 18:06:05(UTC)
Ian555

Scotland   
Joined: 04/06/2009(UTC)
Posts: 20,235
Location: Scotland
Originally Posted by: Goofy Go to Quoted Post
The real richdom are nature recource.
It gives us work,so we can survive by working.
The symbols like numbers and alphabet are illusion,because you use colour to print symbols.
No matter what you write and present with the numbers as cost for the products.


Hi Anders,

Of course, I agree with you, but in this country ( UK. ), there are many 1,000's of people who survive very well without working...

Ian.
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Offline Goofy  
#22 Posted : 26 June 2015 09:22:42(UTC)
Goofy


Joined: 12/08/2006(UTC)
Posts: 8,986
Originally Posted by: Ian555 Go to Quoted Post
Originally Posted by: Goofy Go to Quoted Post
The real richdom are nature recource.
It gives us work,so we can survive by working.
The symbols like numbers and alphabet are illusion,because you use colour to print symbols.
No matter what you write and present with the numbers as cost for the products.


Hi Anders,

Of course, I agree with you, but in this country ( UK. ), there are many 1,000's of people who survive very well without working...

Ian.


But lesser richdom...
Without the symbols,you cannot buy things.
If not less you need paper and the ink,by create symbols.
You see...i see the truth and realism,so i don´t need medication. Flapper
Maybe Märklin will one day decides by rubbish off one zero in the trains,so an locomotive which cost 500 euro,will be 50 euro... LOL
H0
DCC = Digital Command Control
Offline Cyborg  
#23 Posted : 26 June 2015 09:46:21(UTC)
Cyborg

Australia   
Joined: 11/11/2012(UTC)
Posts: 107
Location: Maroubra
Goofy,

you've convinced me now!
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Offline petestra  
#24 Posted : 26 June 2015 15:08:24(UTC)
petestra

United States   
Joined: 27/07/2009(UTC)
Posts: 5,824
Location: Leesburg,VA.USA
I really feel badly for all those people who really would love our hobby but just can't afford it. Young people mostly who would

be the future of our great hobby. Peter Unsure
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Offline kweekalot  
#25 Posted : 26 June 2015 16:09:29(UTC)
kweekalot

Netherlands   
Joined: 27/06/2012(UTC)
Posts: 3,435
Location: Holland
Fully agree Peter, here in my town (Den Haag / The Hague) 80% of the children have single parents (mothers) who depend on benefits and food stamps and have no money for toys, let alone Marklin. And this poverty in the Dutch cities is getting worse day by day.

In this photo taken by Mehmet at the Rossdorfer Modellbahn Markt you can see what's 'wrong' with our hobby...only 50+ man are intrested in (or can afford) model trains.
Crying

UserPostedImage
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Offline Mark_1602  
#26 Posted : 26 June 2015 21:29:54(UTC)
Mark_1602

Luxembourg   
Joined: 24/09/2014(UTC)
Posts: 704
Location: Luxembourg
Hi Marco,

You're right there. There's no money for expensive trains in single parent families, and there's no father who would introduce the boys to model trains. On top of that, electronic toys like computer games are like babysitters, whereas model trains mean parental involvement. Suppose you buy a starter set for a kid, and he likes it. After that, you'll have to help with the layout, service the locomotives, and the kid will like to play with Dad or at least have Dad watch him. All of that costs a lot of time, and even middle-class parents who could afford better toys often prefer to buy Gameboys because once the kids have those, they won't bother their parents any more.

Modern parenting comes at a price, of course. Many kids have poor manual and/or verbal skills because they push buttons all day instead of using their hands or talking to their parents.

Best regards,
Mark
Best regards, Mark

I like Märklin items produced in the 1960s or early '70s, but also digital locos & current rolling stock.
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Offline Ian555  
#27 Posted : 26 June 2015 22:45:08(UTC)
Ian555

Scotland   
Joined: 04/06/2009(UTC)
Posts: 20,235
Location: Scotland
Hi all,

There is a future...

Ian.


CAM_0542rs.jpg

....
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Offline kweekalot  
#28 Posted : 27 June 2015 10:21:16(UTC)
kweekalot

Netherlands   
Joined: 27/06/2012(UTC)
Posts: 3,435
Location: Holland
And besides that modeltrains are too expensive for youngsters and the competition with games like playstation and such, modeltrains also have an imago problem. When children go to high school, modeltrains and lego and such are no longer sexy.
I saw that with my boys, I did everything to keep my boys involved in mrr but once they went to high school, they don't want to play modeltrains anymore.

I afraid that when our generation of the heydays of modeltrains (1950-60-70s) is gone, the hobby will disappear too.

Marco
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Offline Shamu  
#29 Posted : 27 June 2015 11:37:13(UTC)
Shamu

Australia   
Joined: 12/07/2011(UTC)
Posts: 1,068
Location: In a building site in Yeppoon
Unfortunately Marco your probably right.

The 3 boys all well into their 30's now have virtually no interest in the trains although I am hopeful the youngest may take more of a interest as he gets older. Hell the daughter shows more interest.

Some of the grandkids show a lot of interest but like their parents they too most likely will lose interest once they hit the teens. I'd like to think that out of the 14 so far at least a couple will take up the torch before I pass....... with luck another 20 years to convince them.

As others have said there is just too much "crap" available for kids now days, when most of us were kids you were dam lucky to have a train set or slot cars. But there wasn't a hell of a lot of options either except for model kits. Sad but most of us would not be any different if we had been born after the 80's.
Sad when its cheaper to buy a new 29640 starter set from Germany than a CS2 on its own in Oz, welcome to the joys of Marklin down under .
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Offline RayF  
#30 Posted : 27 June 2015 13:12:59(UTC)
RayF

Gibraltar   
Joined: 14/03/2005(UTC)
Posts: 15,837
Location: Gibraltar, Europe
I think we have to resign ourselves to the fact that the hobby will continue to shrink as those of us who are interested at the moment pass away. There is not the mass interest in young people that there was in the last few generations.

I think there will always be some interest, but this will be as a minority hobby, serviced by a few specialist companies, coming back full circle to the early pioneering days when enthusiasts had to scratch-build everything from locomotives to track.

Let's take advantage of the support we get at the moment from big companies like Marklin, and try to encourage those young people who have the resources to invest in our hobby as well as computer games and other modern distractions.
Ray
Mostly Marklin.Selection of different eras and European railways
Small C track layout, control by MS2, 100+ trains but run 4-5 at a time.
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Offline Mark_1602  
#31 Posted : 27 June 2015 15:40:38(UTC)
Mark_1602

Luxembourg   
Joined: 24/09/2014(UTC)
Posts: 704
Location: Luxembourg
Originally Posted by: RayF Go to Quoted Post

I think there will always be some interest, but this will be as a minority hobby, serviced by a few specialist companies, coming back full circle to the early pioneering days when enthusiasts had to scratch-build everything from locomotives to track.


Hi Ray,

I think that's a pretty good prediction of the future of MRR. Märklin as well as some DC manufacturers will survive, but they'll have to cater to a different market. What surprises me in today's MRR scene is that the offer ist still huge despite shrinking sales, so there's still some hope. Maybe kids will eventually get tired of electronic games ... Some companies will go bust, but that's not new. Bing, which used to be the largest toy company in the world, went out of business in 1932, and a number of post-war manufacturers failed in the 1960s or 1970s.

I'll try to get my daughter as well as any future kids we will have interested in Märklin. I can always try ... So far, she has enjoyed watching model trains in action and has even managed to make a digital locomotive run using the mobile station; that's not so bad for a three-year-old. Cool

Best regards,
Mark
Best regards, Mark

I like Märklin items produced in the 1960s or early '70s, but also digital locos & current rolling stock.
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Offline mike c  
#32 Posted : 01 July 2015 07:43:57(UTC)
mike c

Canada   
Joined: 28/11/2007(UTC)
Posts: 7,865
Location: Montreal, QC
I think that Maerklin and other companies need to focus on the 3-7 year old market to introduce kids to model trains and then work very hard to build the brand name association, developing a series of train related computer games that older kids might still like and then hope that those kids will in turn rediscover trains when they are older and have an income and later a family and their own children. That said, they also have to satisfy the existing market to retain their current market share.

Regards

Mike C
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Offline petestra  
#33 Posted : 01 July 2015 13:03:37(UTC)
petestra

United States   
Joined: 27/07/2009(UTC)
Posts: 5,824
Location: Leesburg,VA.USA
True Mike. Then when these kids have families of their own they may return to our great hobby? Peter Cool
Offline river6109  
#34 Posted : 01 July 2015 15:46:16(UTC)
river6109

Australia   
Joined: 22/01/2009(UTC)
Posts: 14,614
Location: On 1965 Märklin Boulevard just around from Roco Square
I've gone back to my early hobby, playing in the sand pit

garage 40010.JPG
https://www.youtube.com/river6109
https://www.youtube.com/6109river
5 years in Destruction mode
50 years in Repairing mode
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Offline Wildrose-Wally  
#35 Posted : 01 July 2015 17:53:16(UTC)
Wildrose-Wally

Canada   
Joined: 22/12/2013(UTC)
Posts: 563
Location: Sunny Southern Alberta
I don't think that will last. A lot of men have done it, and when they get tired of it from a few days to a few weeks later, they cover it up with concrete. LOL

Model trains is the way to go, they never get covered with concrete. Flapper
UserPostedImage
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Offline baggio  
#36 Posted : 05 July 2015 16:41:08(UTC)
baggio

Canada   
Joined: 21/09/2012(UTC)
Posts: 1,729
Location: Toronto
I think when boys hit the teen years, they develop an interest in another toy: girls! We have all gone through that stage.

Still, that has always been the case. What Marklin and others need to do is apply tablets and less expensive portable computers to a layout so as to attract children in their pre-teen years, around 9 or 10.

Model trains are a great hobby for children and their parents and the not-so-young, grand parents normally. That is a fact of life. It is unrealistic to think otherwise.

I am the same way. I played with trains (with my father mostly) until I was 13, and then I literally forgot about the hobby (the set was left behind in another city) for 44 years. It was only as a result of my finding an old 1963 Marklin catalogue on the Internet (in Italian) three years ago that through nostalgia I went back to the hobby.

I have now spent about $2,000.00 buying locos, rolling stock, track, etc.. I am glad I did, even though the hobby is often frustrating. All this stuff will either be sold for a song or thrashed when I go. I accept it as a fact of life. I just hope my grandson, now under two, will develop an interest for a few years.

Cheers, everyone. Let's enjoy our hobby while we can. BigGrin

Have a good Sunday everyone. Today it's a nice sunny day in Toronto. ThumpUp
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