Ed
You are normally a rather astute person, but...
>
The prices you quoted for SSA products are much higher than anything we offer.
The overwelming majority of our cars are $39.98 - $44.98 with two ACF hoppers
and one reefer at $47.98 with nothing approaching the $56.00 you quote.
Perhaps you were looking into the future and adding a price increase for us.
Actually we have never raised our prices on existing product in over 15 years
unless we had a vendor price increase on a rerun. I think the only area we
have done this is on brass castings. Cars that we sold for $39.98 ten years
ago are still $39.98. Not very astute or good business sense perhaps, but that
is what we do.
Ron Sebastian
S Scale America
> "Double anything else" is an interesting comparison. The newer SHS freight
> cars are running about $53. The DPH freight cars are running about $45-$56
> depending on the specific car. The AM gondola costs about $36, but has a
> LOT LESS detail. Comparing to the AM gondola is sort of an
> apples-to-bananas comparison -- like comparing a very nice toy to an
> authentic fully-detailed scale model. The two are not equivalent to each
> other. I'd bet the next production run of AM gons will be higher in price,
> but that is speculation on my part. The AM deluxe 40' box cars run about
> $44. Our RTR gondola is priced at $91 which is higher, but not quite double
> many other S scale freight cars. Why is that?
>
>
>
> Our cars are manufactured, assembled, painted and lettered in Illinois.
> Without checking the specifics, I would surmise the other cars are made in
> an area where lower wages prevail. The company making our cars is a real
> business with offices, shops, employees, health benefits, computers,
> tooling, production machinery, etc. on the premises. They pay taxes, use
> consultants and are well known in the O scale world. Yep, they have already
> made an O scale gondola similar to the GS drop-bottom gondola we are
> selling. So, for better or worse, our labor costs are much higher than
> those of the honorable S competition.
>
>
>
> The advantage of doing business in Illinois is that we can obtain much
> smaller production quantities without the cost of hard tooling. We do not
> need to buy huge quantities in order to have a new product for S scale.
> This project is within our reach and we are happy to offer it. We did talk
> to most of the existing S manufacturers/importers about this project, but
> could not work out satisfactory quantities, costs and timeframes for this
> particular car. One of the big hurdles was asking for both RTR cars and
> kits and scale and AF-compatible wheels. We wanted our cake and eat it too,
> but found that difficult to obtain from any single USA source. Sorry about
> that, but it just wasn't workable in 2010.
>
>
>
> I guess the proof of the pudding is in the end result. If this drop-bottom
> gondola project is successful, there will be motivation for other similar
> future projects. If it is not successful, then you will just have to wait
> for some other firm to resume making new stuff for our favorite scale.
> Actually, it is my belief that we all can co-exist in harmony - some making
> kits, some making RTR and maybe some actually doing both. Now there is a
> thought!!
>
>
>
> Regarding California's budget crises, our new Governor Moonbeam says he will
> take care of the problem. I guess Arnold the Terminator was not strong
> enough. In the meantime, we do not charge any sales tax when the cars are
> shipped to an out of state address. Buy it here in California and there
> will be a sales tax of about 9% approx (forgot the exact percentage).
>
>
>
> Thanks for your message, John, it gave me an opportunity to explain our
> situation. I'd be willing to bet you can afford one kit merely by avoiding
> Starbucks for 25 weeks. After all, 25 weeks times $3 per cup equals $75.
> Just a thought to cogitate upon. After 25 weeks which would you rather
> have: a really nice new car on your layout or fond memories of flavored
> water?
>
>
>
> Take care now... Much of this is meant in friendly jest and good humor.
> Please do not take offense.
>
>
>
> "S"incerely..Ed L.
>
>
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
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