--- In [EMAIL PROTECTED], Chris Zizzo <[EMAIL PROTECTED]> wrote: > I'm not one to look a gift horse in the mouth, but this isn't a gift, is it? > It's a product that you have to spend money to acquire. Perhaps the appeal > is that it's less money than other competing products. I found that it's > twice as much as it should be. The exact carbodies are selling elsewhere in > the same catalog for only ten dollars with 027 wheelsets. The 027 cars > selling for $20 are of a greater variety and interest (Train 19) than these. > What are we paying the other $10 for, the R&D needed to tool up S wheelsets? > Where's the deduction for the 027 wheelsets they replace? We're paying > maybe $12 a car for the trucks!
Just because K-Line sells O27 versions of these cars for $10 doesn't mean that they could price all of their Marx-derived cars (S included) at that price and make a profit. In most industries, it's not uncommon for companies to offer a "loss leader" product to get customers into the fold (even Gilbert did this with entry-level Atlantic sets). With the fierce competition in the O gauge market and K-Line's stated goal of being the industry leader in 5 years, I'm not surprised that they sell some products at a loss. But S is a different story. They don't need to sell the cars for $10 because they are already way below anything else you can buy. They're just running their business rationally. Scott S-Trains list sponsor: http://www.americanflyertrains.com All the Flyer you desire...books and accessories too! To UNSUBSCRIBE from this list send a note to [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
