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ROCO FILES BANKRUPTCY
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Bill
#101
Posted :
24 July 2005 18:10:14(UTC)
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Joined: 07/11/2001(UTC)
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In order to find TRUE success in the mass-American market, Marklin would have to re-focus their entire business model and philosophy, and I think that will be a losing move for Marklin, which is considered a higher-end quality model train manufacturer.
The average American consumer wants things cheap, whereas quality is many times second. Hence the Wal Mart success in the United States. "We don't care where it is made, as long as it is cheap." This has hurt the American economy and we are a nation swimming in debt with trillions of dollars in imports from China in all our stores...
Marklin would have to become the Model Power or Bachmann of the industry to really appeal to the American consumer who wants cheap trains and could care less whether the name "Marklin" is stepped in legend and mystique.
Sorry -- mass appeal does NOT work, despite what others have said here -- if you want to offer a quality product.
Just study Southwest Airlines or the JetBlue model to see how small and lean works -- whereas the big airlines that offer poor service are all in debt.
Marklin's formula for success must be to refocus on the long-time loyal consumer, offer a quality product and keep their philosophy consistent.
Also -- there is too much blame here on the "shrinking market." Sorry, but smart marketing can overcome any "shrinking market" or poor business climate -- it's all about customer service, support and making consumers feel good. If Marklin goes the way of Wal Mart just to survive at it's current size and grow, then they won't be the same Marklin.
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David Dewar
#102
Posted :
24 July 2005 23:18:59(UTC)
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Location: Scotland
Bill. A lot of good points..well said.
David
Take care I like Marklin and will defend the worlds greatest model rail manufacturer.
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McLae
#103
Posted :
26 July 2005 09:02:41(UTC)
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Location: DeSoto (Dallas area), TX
Quote:
[size=1" face="Verdana" id="quote]quote:Marklin would have to become the Model Power or Bachmann of the industry to really appeal to the American consumer who wants cheap trains and could care less whether the name "Marklin" is stepped in legend and mystique.
My Wife bought a Bachmann and a Model Power starter set (one of each for Christmas) for my son. To be polite, I will not state the true description of what I found (expletive deleted). Just that one of the Loks was so badly made that it could not move itself, let alone any cars. Cheap piece of [8].
All thrown in a bin. Not used or thought of. Complete waste of money![:(]
This sort of thing gives the whole hobby a bad taste to anyone unlucky enough to be burned. I only buy EU brands, just because I want Loks, cars, and equipment to 'Work'.
(Stepping down from soapbox now...)
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jonquinn
#104
Posted :
26 July 2005 20:08:48(UTC)
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Location: Pennsylvania
I'm not into the HO DC stuff, except for some US prototypes that I hope to eventually convert to 3-rail digital, but bachmann, and most of the other DC types sold here in the USA, sell two or three levels of "quality". Bachmann makes its "Spectrum" line which supposedly gets good reviews in the magazines. Same goes for Athearn with its Genesis line.
I would suspect that some of these boxed DC sets you will find in toy stores, department stores, or big box stores, are geared more to the impulse buy than anything else. I would also suspect that the price is much lower than what a Marklin (or Lionel) starter set would be.
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cazart
#105
Posted :
27 July 2005 18:00:29(UTC)
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Location: Menlo Park, CALIFORNIA
I would never suggest Bachman nor any other model/toy train company as the right model for Märklin. Most of the other companies have more issues or limitations than Märklin. Märklin is one of the better positioned brands for many reason, however, it too faces big challenges - it is just a matter of time.
Getting new families and kids into the brand is key for Märklin. I do not buy it that to get to kids you go down market on quality - if anything to get the kids you need to have excellent quality with good features like digital and sounds as a must. Otherwise, model/toy trains will simply not be competitive vs. the other options that kids and their parents have today.
Without going too far with the automotive analogy, I would think of Toyota/Lexus and Honda/Acura; these are strong and quality brands, and they have some of the best features available - even when compared to so called 'luxury' brands and yet these are brands for the so called masses.
To get more parents and kids - even in the 'well-to-do' country markets - into its brand, Märklin will need to deal with go-to-market fundamentals including the relatively high price of Märklin. These challenges are not easy, but there are solutions. If there is a will and little bit of vision there is a way.
Anyway, Märklin does not have to follow the shrinking market, and in fact, Märklin could become a global brand.
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PierreGILLARD
#106
Posted :
27 July 2005 18:47:38(UTC)
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Location: Longueuil, Quebec
Hello,
Almost everyday things are changing in our small railroad world. Rivarossi disappeared; Life-Like, Proto 1000 & 2000, etc were bought by Walthers; Athearn was acquired by I do not remember who ...
It will become difficult to some other manufacturers to survive. Financial strategy is now more important than end products.
Pierre.
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plavnostruev
#107
Posted :
28 July 2005 01:51:35(UTC)
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Joined: 18/11/2004(UTC)
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Location: New Jersey, USA
Well, having carefully read entire thread...
[:I][:p][}:)]
[:o)][B)][8][:(][8)][:0][:(!][xx(][|)][:X][^][V]
...
I have just placed an order for ROCO's Ae8/14 Landilok from Eurolokshop. Whatever will be, will be! Amen.
Mike
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7gauges
#108
Posted :
28 July 2005 02:56:05(UTC)
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Does Lokshop have the same deal as modellzentrun) where you get 33% discount on in stock loco's (their bankrupycy - blowout sale)?
Collecting / Fixing and Running trains since 1966.
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McLae
#109
Posted :
28 July 2005 06:03:43(UTC)
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Location: DeSoto (Dallas area), TX
I have three OBB Loks on order. [:0]
I realy hope the 1020 from the international collection survives.
I have stocked up on critical parts (4-pole CCC) and bought some of the specials. The 'Birthday' Lok (Austrian army 50 Jahr) blew most of the budget for this year. Only thing I will order for the rest of the year is Viessmann Catenary for layout under construction.[:p]
Unless, there is a realy good price on AC Loks....[}:)]
Only good thing I can see is that I will no longer be frustrated by a catalog filled with Steam Loks that cannot handle 360mm curves.[}:)][:(]
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plavnostruev
#110
Posted :
28 July 2005 06:21:08(UTC)
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Location: New Jersey, USA
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by 7gauges
<br />Does Lokshop have the same deal as modellzentrun) where you get 33% discount on in stock loco's (their bankrupycy - blowout sale)?
What is modellzentrun?
www.euromodeltrains.com
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PeFu
#111
Posted :
28 July 2005 10:45:09(UTC)
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Joined: 30/08/2002(UTC)
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Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by plavnostruev
<br />
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by 7gauges
<br />Does Lokshop have the same deal as modellzentrun) where you get 33% discount on in stock loco's (their bankrupycy - blowout sale)?
What is modellzentrun?
Probably
http://www.modellbahnecke.de
.
Re. to your signature: How about a carburetor?
Funck
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plavnostruev
#112
Posted :
29 July 2005 00:37:44(UTC)
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Location: New Jersey, USA
Quote:
[size=1" face="Verdana" id="quote]quote:
Probably
http://www.modellbahnecke.de
.
I see, thanks. Looks like they don't have it (ROCO69771).
Quote:
[size=1" face="Verdana" id="quote]quote:
Re. to your signature: How about a carburetor?
Funck
And what would I do with a carburetor on my layout??
QUEEN got it all wrong
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steventrain
#113
Posted :
05 August 2005 14:25:25(UTC)
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Joined: 21/10/2004(UTC)
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Location: United Kingdom
Found latest news on roco from MRE news.
Roco in Administration
Last week we reported that the famous Austrian company, who, amongst other things, produced much of the world’s supply of track, was in the hands of the Receiver. We have now heard that the model railway section of the company has been hived off as a separate entity under the control of an Austrian bank and effectively has three months in which to sort itself out.
The facilities at Salzburg and Gloggnitz (in Southern Austria) and the small factory in Slovakia will remain. Now called Roco Modelleisenbahn Gmbh, the workforce has been reduced from 800 to 450. Salzburg will remain the headquarters of the company with responsibility for distribution, management, development, construction, purchase and logistics while most of the manufacturing will be done in Slovakia.
Leopold Heher has been brought back to manage the company for the time being and Hr. Maegdefrau, the previous owner, now has no connection with it. Hr. Plohberger, who was chief executive for several years, is also back along with distribution managers Hr. Wadislohner and Hr. Ott.
The company is now owned by the Raiffeisen Federation of Salzburg.
The Austrian papers suggest that a number of companies have been looking at Roco, possibly with a view to acquiring it.
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john black
#114
Posted :
05 August 2005 19:24:12(UTC)
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Joined: 22/04/2004(UTC)
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Location: New York, NY
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by steventrain
<br />a number of companies have been looking at Roco, possibly with a view to acquiring it
Well, that guy Magdfrau must have been two cans short of a six pack when trying to salt up the bank - so they wasted him
Just a guess - they'll sell that shop for big $$$, soon ... [}:)]
John
I hope no one visits a poor Southener's layout in Brooklyn. Intruders beware of Gators.
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steventrain
#115
Posted :
07 August 2005 12:32:59(UTC)
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Location: United Kingdom
Maybe...maybe....
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john black
#116
Posted :
08 August 2005 10:08:46(UTC)
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Joined: 22/04/2004(UTC)
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Location: New York, NY
Steven: The bank always wins ... [xx(]
I hope no one visits a poor Southener's layout in Brooklyn. Intruders beware of Gators.
AT&SF, D&RGW, T&P, SP, WP, UP, BN, NYC, ARR, epI-III - analog & digital Marklin Classics only.
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David Dewar
#117
Posted :
08 August 2005 14:52:01(UTC)
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Location: Scotland
Not always John. Some firms just go under with no cash left to pay the Bank and even if secured the security can not always repay the debt.
Worse of all though is the private individual. I once gave a loan of £10000 to a guy who then emigrated to Australia within a week of receiving the cash. Seemed OK at the time but you can never tell.
David
Take care I like Marklin and will defend the worlds greatest model rail manufacturer.
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stephenbb
#118
Posted :
08 August 2005 15:01:48(UTC)
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Joined: 22/11/2004(UTC)
Posts: 1,836
Location: Trumbull, CT
After reading all the doom and gloom, I hope that they succeed and reestablish themselves. With support from their labor force and their creditors they well may be able to pull it off. It would be terrible to loose such a fine company. I know their are companies willing to buy the brand name and ship out cheap poor quality product using the brand, however, it would be nice to see this company make it back even as a smaller venture.
Stephen(USA)
Stephen(USA)
ETE,NMRA,MEA
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john black
#119
Posted :
08 August 2005 15:13:42(UTC)
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Joined: 22/04/2004(UTC)
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Location: New York, NY
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by David Dewar
<br />Not always John. Worse of all though is the private individual. I once gave a loan of £10000 to a guy who then emigrated to Australia within a week of receiving the cash
Really sorry for your poor bank [}:)], David - let's guess he needed the cash for his immediate evacuation
But I wasn't talking peanuts. Seriously, when it's about big $$$ I came to the conclusion the house wins most of the time ...
John
I hope no one visits a poor Southener's layout in Brooklyn. Intruders beware of Gators.
AT&SF, D&RGW, T&P, SP, WP, UP, BN, NYC, ARR, epI-III - analog & digital Marklin Classics only.
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Karl
#120
Posted :
10 August 2005 07:20:45(UTC)
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Joined: 23/10/2003(UTC)
Posts: 253
It is shame that Roco is having problems and will probably go out of business. Hopefully they can be sold to another Austrian, German, or European train manufacturer to keep the company on the continent at least. The market is tough for model trains these days since children now have some many electronic toys to choose from. I should know since I have two sons one 10 and the other 12 years of age. I was able to keep their interest to some point in model trains by showing them at a very young age and working on layouts with them, but of course they still like there video games. I spend as much time as possible doing things with my children just to keep their interests in many other things and it has worked to some degree. Well the way I see it model railroading does takes time and patient something many people at least that I know don't have anymore - even to cook our own meals. As for the future of Marklin, I think Marklin will eventually have its lower end starter sets, locos, and cars manufactured outside of Germany, but continue to produce the higher end products in Germany which will keep the brand afloat. This is what happened to many companies everywhere in the world. I saw Henkel knives made both in Germany and Taiwan (I think) the other day. The Taiwan ones were priced much cheaper, but it gives the brand name recognition which helps sales. Of course the ones made in Germany were more expensive, but the name becomes more recognized and becomes a potential sales. Of course we know the auto industry along with photo industry has been doing this for some time now. All that said I feel Marklin’s future will be fine as long as they keep up with the times in the areas of marketing and control manufacturing costs. Compromising on quality would be out of the question no matter where they manufacture. This is the one niche they still have in the market.
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cazart
#121
Posted :
12 August 2005 04:04:14(UTC)
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Location: Menlo Park, CALIFORNIA
Karl,
I tend to agree with your comments regarding kids. I did not even know Märklin until after my son was born. Last year I anticipated that he would begin to outgrow the Brio/Thomas wood trains, so I started looking for the next step for him and I found Märklin! I also agree with your comments regarding Märklin. I hope that the Rocco situation motivates Märklin to become more aggressive about developing other large markets like the US. There is a lot of upside if they were to do this. I agree that Märklin should never sacrifice quality. Finally where they manufacture is not relevant to me (nor to most potential new customers) - they should go wherever they can to minimise cost and maximise quality - and that could be China, Malaysia, Mexico, Vietnam or wherever.
By the way, Good Luck with your kids and with Märklin - I think one of the great advantages of this hobby is that it is something that all ages can enjoy.
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steventrain
#122
Posted :
12 December 2005 20:46:12(UTC)
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Location: United Kingdom
I have heard news that roco back in business.
Found in other forum site say
'According to news reports Roco is back in operation under a new name, Modelleisenbahn GmbH. Several members of the old regime are working for the new firm that is now based in Munich, Germany.'
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Trainingtime
#123
Posted :
12 December 2005 20:58:52(UTC)
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Location: Ohio, USA
Many "toy" companies are struggling. We will see how our big boy "toys" survive. I for one play train with the kids as much as possible. Lets all keep playing and keep our hobby going for a long time to come.
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Munich 1860
#124
Posted :
12 December 2005 21:01:58(UTC)
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Location: Neu-Ulm, Bavaria
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by steventrain
<br />I have heard news that roco back in business.
Found in other forum site say
'According to news reports Roco is back in operation under a new name, Modelleisenbahn GmbH. Several members of the old regime are working for the new firm that is now based in Munich, Germany.'
More or less every single sentence of this "other" forum's quote has been known for months but is in the meantime outdated or simply wrong (i.e. NOT Munich).
But Steven, your headline is correct. They ARE back in business and were at the Munich exhibition with an ok presentation.
Regards,
Hans
I like M-track and my things that run on it were built between 1959 and 1972.
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svgeorgiad
#125
Posted :
12 December 2005 21:47:32(UTC)
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Joined: 06/03/2005(UTC)
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Location: Athens,
Glad to hear that ROCO is back in business. Although I love Maerklin I have to admit that the ROCO locs I own are fantastic in terms of smoothness in running and they also have exceptional power and speed characteristics. I am talking about the 69742 and 69743 locs (E103 in two different colour variations) which run considerably better than the Maerklin Insider 2003 Modell of E103 (39579).
I consider ROCO's presence in the modelrailroad business field essential for a good competition between companies.
Symeon Georgiadis
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Armando
#126
Posted :
13 December 2005 14:47:23(UTC)
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Location: Houston, Texas
Hello,
All I can say is that I am very sorry for ROCO, as I was for Rivarossi. Who is going to manufacture now the superb true-to-scale 303mm passenger coaches? Given that Märklin continues with the stubborn trend of the "toy-train-has-to-fit-all-curve-radii", I hope that we will see another maker coming up on the horizon that will accurately reproduce model trains.
May this be my epitaph for a lost friend...
Greetings,
Armando
Best regards,
Armando García
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verheyen
#127
Posted :
13 December 2005 16:18:44(UTC)
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Roco isn't gone yet, are delivering, and restructuring. They just need to be careful. In terms of 1:87 manufacturers, there are several others depending on what you want - Sachsenmodelle, Heris, L&S, ... One just needs to look a bit further afield.
p.
Quote:
[size=1" face="Verdana" id="quote]quote:
Originally posted by Armando
<br />Hello,
All I can say is that I am very sorry for ROCO, as I was for Rivarossi. Who is going to manufacture now the superb true-to-scale 303mm passenger coaches? Given that Märklin continues with the stubborn trend of the "toy-train-has-to-fit-all-curve-radii", I hope that we will see another maker coming up on the horizon that will accurately reproduce model trains.
May this be my epitaph for a lost friend...
Greetings,
Armando
Peter D. Verheyen
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http://papphausen.blogspot.com/
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leohcheung
#128
Posted :
21 December 2005 18:05:30(UTC)
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Successful industry turnarounds are not unheard of - witness the rebirth of the Swiss mechanical watch industry in the aftermath of the quartz movement in the 1970s.
The likes of Marklin, Fleishman and Roco all have compelling brands and products. As opposed to blaming the economy, the banks, the owners, the workers, the customers, (...and the Chinese, for that matter[}:)]), they may want to focus on the declining level of corporate, marketing and engineering competence which no one likes to talk about.
Roco decided to spend the money a couple of years ago to build a fancy new Roco plant in Austria as opposed to getting more and better trains into our hands. As a customer I'm not enjoying the outcome either, but nah I don't think I'm going to shed too many tears for the management who decided to do it, nor for the banks and shareholders who approved it. I'll just keep looking at the awesome 18-201 I have on my desk now and hope the business gets back on track again...
Leo Cheung
(griping from my Chinese soapbox)[:0]
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