----- Original Message -----
From: "Charlie Vlk" <cvlk@comcast.net>
To: <CBQ@yahoogroups.com>
Sent: Saturday, July 16, 2005 1:01 AM
Subject: Re: [CBQ] There must be a better way...
> To keep in on topic, the way things are today....
> We will see Q-specific models in plastic (like the California Zephyr and
> 9900) that would not have been possible ten years ago. Even Q Steam is
not
> out of the question in the future.
> The trend was started by the IRS when tax laws changed so holding
inventory
> became something that distributors and retailers could no longer afford to
> do, even in times of low cost of money.
>
Charlie,
As a tax accountant, I'm unaware of any specific tax provision of the IRS
that specifically taxes inventory and discourages distributors and retailers
for holding inventory. The only thing that comes close is UNICAP and that
provision has been is place for many, many years and applies also to
manufacturers.
The trend started because of the cost to manufacture a specific product to
meet the demands of a consumer wanting a more prototypically accurate model.
Therefore, small production runs of which to spread the fixed cost of
researching and developing a new product. Research and production cost
including dies, molds, painting fixtures etc. Retailers have resisted the
manufacturer's requirement to buy unpopular roadnames. Retailers can't
afford to hold inventory and niether can the manufacturer. The manufacturer
wants to invest in a new product, sell it, recover their investment, make a
profit and then use that return to produce another new product so that its a
self feeding cycle.
Jerry K
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