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RE: [CBQ] Silver Streak Zephyr

To: <CBQ@yahoogroups.com>
Subject: RE: [CBQ] Silver Streak Zephyr
From: "Charlie Vlk" <cvlk@comcast.net>
Date: Thu, 9 Aug 2012 13:00:03 -0500
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James-

I agree with you…the TCZ (especially) and the DZ would be lovely in plastic.   But having worked at Kato I have an idea of how to “sell” projects internally and am quite pleased that the Budd cars are in stage 2 of a long range “plan”…. Cars, E5/Silver Streak, E5B/TCZ/E7A/Wabash Blue Bird, DZ with E5ABA and E8/9 AAA.   The 1936 TCZ and DZ might even be on the list in the future if sales support the Silver Streak and subsequent steps.

Same for HO sales.

N Scale does enjoy a slight price advantage on passenger cars but Kato seems to be under market at this point and I wouldn’t count on the $25 per car price much longer.   We are used to paying the same or higher prices for locomotives and freight cars so it is nice to have a bargain in some things.  I don’t think any car that would sell for less than $50 in HO would be acceptable in today’s market as it would be AHM/IHC/Model Power level quality.   We may not need the coffee pot in the interiors but the standards are pretty high.

Charlie Vlk

Brian and Charlie,

There's a very big gap here though. In N Scale, for $250 you get a nominal 10 car passenger train, with a couple of two or four car addon sets for $50/$100 per set to make up the prototypical length train. This is truly affordable.

My concern is that in HO Scale the cost is going to be at least twice that, with the every increasing costs, the price could be tripple or more in the cost. That's $750 for a plastic set, which is reasonable on price at $75 per car, the issue is, most people don't have that much to spend at one time.

Walthers has the right idea, release a car per month and folks can pick them up as they are released, but an entire trainset, would be too much for a lot of people to do at one time.

I would have loved a Rapido Canadian (two actually as when I'm modeling I need to mix and match cars) but I couldn't afford to buy one set at one go, let alone two sets.

I would have preferred that Rapido (and Kato should they decide that they're going to do HO Scale Passenger Train Sets) released the Locomotives as the first item in a "box set" that can hold the entire train. From there, they released 1 or 2 cars per month that come in plain packaging and can be removed from the plain packaging, and placed in the box set that the locomotives came in. This makes it much more affordable for the customer to purchase.

If I could get them to do a train, I'd like to vote for a DZ or TCZ, with separate number / name boards so that the cars can be used for other things post this service.

James

----- Original Message -----
From: "Brian Ehni" <behni@comcast.net>
To: CBQ@yahoogroups.com
Sent: Wednesday, August 8, 2012 11:54:07 AM
Subject: Re: [CBQ] Silver Streak Zephyr

FWIW, I think either the 3rd set of the TCZ, or the second set of the DZ would have wider appeal.

Thanks!
-- 

Brian P. Ehni

From: Charlie Vlk < cvlk@comcast.net >
Reply-To: < CBQ@yahoogroups.com >
Date: Wednesday, August 8, 2012 10:44 AM
To: < CBQ@yahoogroups.com >
Subject: RE: [CBQ] Silver Streak Zephyr

 

Brian-

No, the marketplace (consumers) have decided that Kato USA HO products don’t sell.   They have done similar  items in HO that sell well in N and observed from the sales figures that their market is not in HO.  They continue to make HO items but sales are a fraction of what they are in N on a item to item basis.

Not every company should be in every market.   Kato, for example, IMHO, should not be in the freight car market because they do not have a production profile / mentality to support numerous releases of many roadnames with a range of roadnumbers.   Their production model is an item release once every few years with perhaps 2 roadnumbers for 6 roadnames.   It is their “way” and their company.   If they had more frequent production they would have gotten around to your pre-72 ATSF SD45s…..it wasn’t because the Kato USA researchers/staff were unaware of the attractiveness of that (and the other 100 that those units could be painted) scheme.

It would be interesting if they decided to tool up the Silver Streak Zephyr as a set (like Fox Valley did with the Hiawatha) and see what the market response would be.   I fear that more people would find reasons not to buy it then would step up to the plate to support it.

Charlie Vlk

 

From: CBQ@yahoogroups.com [ mailto:CBQ@yahoogroups.com ] On Behalf Of Brian Ehni
Sent: Tuesday, August 07, 2012 9:27 AM
To: CBQ@yahoogroups.com
Subject: Re: [CBQ] Silver Streak Zephyr

 

 

So, based on the HO scale product mix Kato produced and sold, they've decided that HO doesn't sell. There's a self-fulfilling issue for you.

 

I believe Kato has been ill-served by some of their own choices. For example, why no pre-72 ATSF SD45s? 

 

Thanks!
-- 

Brian P. Ehni

 

From: Charlie Vlk < cvlk@comcast.net >
Reply-To: < CBQ@yahoogroups.com >
Date: Tuesday, August 7, 2012 9:03 AM
To: < CBQ@yahoogroups.com >
Subject: RE: [CBQ] Silver Streak Zephyr

 

 

Brian-

Having worked for Kato and seen the situation from all sides during my Model Railroad career (manufacturer, wholesale distributor, retail shop, and consumer) I can tell you it isn’t a lack of caring that drives their product mix.

Kato’s HO sales in North America have been a small fraction of what they sell in N for the last twenty years…..especially after the “Kaizaned” RS2 and SD40-2 mechanism redesign  disasters.   I would say that even Model Power outsells Kato, at least at the shops I am familiar with.   The market response to the HO SD80MAC, Business Car, Bilevel Commuter Coaches, F40PH, and SD40/SD38 has not encouraged them to step up their HO production.   N Scalers have voted with their money and won the race.

Charlie Vlk

 

Kato apparently no longer cares about HO, judging by their recent releases.

 

Brian P. Ehni

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