Is it just me...or are model kits getting dearer!
chola
04-26-2008, 12:56 AM
Well, as the title says....
I don't have a hobby shop I visit regularly (need to drive an hour for a half decent one), but I've noticed over the past 18 months the prices of kits seem to be getting quite high. Don't seem to get too much change out of $60 Australian for a fairly run of the mill Tamiya 1/24, and not a lot from $90 if you want a clear bodied F1 or something a little special.
I realise that kits are now produced with much more complex tooling and production methods, but with the improvments in technology and production, I would have thought the prices should still be a little less than they are, considering now 99% of the kits made are curbside there are less parts!!
I remember seeing the old Tamiya F40 in K-Mart for $24.95 about 10 years ago, now the same kit in the shops is near enough to $55!
How do the sellers on Ebay sell a current Tamiya kit for as little as $5 USD and still make a profit?
Interested to hear from other AF'ers about your local kit pricing, are we just getting ripped off in Australia?
I don't have a hobby shop I visit regularly (need to drive an hour for a half decent one), but I've noticed over the past 18 months the prices of kits seem to be getting quite high. Don't seem to get too much change out of $60 Australian for a fairly run of the mill Tamiya 1/24, and not a lot from $90 if you want a clear bodied F1 or something a little special.
I realise that kits are now produced with much more complex tooling and production methods, but with the improvments in technology and production, I would have thought the prices should still be a little less than they are, considering now 99% of the kits made are curbside there are less parts!!
I remember seeing the old Tamiya F40 in K-Mart for $24.95 about 10 years ago, now the same kit in the shops is near enough to $55!
How do the sellers on Ebay sell a current Tamiya kit for as little as $5 USD and still make a profit?
Interested to hear from other AF'ers about your local kit pricing, are we just getting ripped off in Australia?
matador88
04-26-2008, 05:47 AM
in year 2008, in the time of eshops and ebay its a rant on a wrong grave.
if you want tamiya use HK, or JP eshops
if you want tamiya use HK, or JP eshops
DVST8R
04-26-2008, 06:54 AM
Everything has gotten stupidly expensive lately, not just model kits. I won't buy any kits locally unless its something OOP. Everything on HLJ is half the price of buying it locally.
jano11
04-26-2008, 07:55 AM
Yep Asia internet shops have good prices. However even there the prices went up during the last 12 months, all this because kit manufacturers increased the kit prices (just take a look on Fujimi's site, you pay more for a simple kit than you were paying for an Enthusiast Model).
jmwallac
04-26-2008, 09:07 AM
Don't ovelook the obvious. Have you seen what crude oil is doing? It's now flirting with $120USD a barrel. Since plastic is made from petroleum, it's only natural the price of the finished product will go up with the cost of the raw materials. I'm sure licensing fees aren't helping either.
Since I haven't been in the hobby for very long, just about any kit out there is new to me. I've picked up about 15 to 20 kits on eBay for less than $15USD shipped.
Since I haven't been in the hobby for very long, just about any kit out there is new to me. I've picked up about 15 to 20 kits on eBay for less than $15USD shipped.
MPWR
04-26-2008, 09:08 AM
New kits are definitely more expensive, for alot of reasons. Kit makers pay licensing fees to car manufacturers that they didn't have to pay 10 years ago, which hugely impacts the prices of kits (and as much as any other reason is why we don't see many new car kits these days). The increase in the cost of oil hits everything, from freight costs to actual plastic costs (made from oil, in a sense). Inflation and exchange rates take a bite, and of course hobby shops must charge more to pay for their storespace- they're competing with online shops without the same overhead, and have to make up for their lost sales somehow.
But really this is still an incredibly cheap hobby. You can start for well under $100US, full equipment costs are under $300 (airbrush and compressor), and if you build four kits a year (even if they're uberexpensive Tamiya kits for $50 a piece), that's still only a couple hundred a year. Many of us don't consume kits even that fast....
But really this is still an incredibly cheap hobby. You can start for well under $100US, full equipment costs are under $300 (airbrush and compressor), and if you build four kits a year (even if they're uberexpensive Tamiya kits for $50 a piece), that's still only a couple hundred a year. Many of us don't consume kits even that fast....
rockinanko
04-26-2008, 10:03 AM
gee, from all the points discussed, i wonder where's this trend heading to?
where do we, the car modelors, go from here?
pay premium for kits & make good with whatever there're available, now that such simple plastic kits have 'evolved' into such complex commercial issues!?
i just wonder if there's anymore future in this hobby, when come to my sons' turn to build...10 years down the road?
sigh...:shakehead
marc
SGP
where do we, the car modelors, go from here?
pay premium for kits & make good with whatever there're available, now that such simple plastic kits have 'evolved' into such complex commercial issues!?
i just wonder if there's anymore future in this hobby, when come to my sons' turn to build...10 years down the road?
sigh...:shakehead
marc
SGP
chola
04-26-2008, 04:58 PM
Thanks for the replies.
Well. the times they are a changi'n......as the song goes!
All points very valid...I just used to remember the thrill of saving a bit of pocket money (at $2.50 a week this took a while!), going to the LHS and picking up some sort of Ferrari, Lamborghini, or other car that I could only dream about (or mostly only saw on the Cannonball Run Movies!), getting it home, diving right in and doing all the wrong things, brush painting the body, superglue the windscreen and all that..totally buggering it up, but I was very proud of my new creation, which, overall, was very cheap...I would love for my kids to be able to experience the same thing, the same joy...but kits are almost too expensive to give to a kid just to 'bugger it up'....yes I know, kids need to learn and all that....so I don't mean that in a bad way....also the joy of saving the money and going and walking into the shop and walking out with something was often it's own reward...now the process is much different....save their money for however long...mum and dad inevitably have to tip in a few $$$...go to the shops to see what is available, then go home and do the usual searches of Ebay, HLJ etc, then wait a few more weeks for the thing to arrive, and hope like hell in the meantime it actually does arrive...or at least arrives undamaged, or worse, explaining to the above mentioned kid why it didn't arrive because of a dodgy seller on Ebay and they've done their cash! (yes, yes, all usual precautions taken, but I've been ripped off by a seller with over 99% positive feedback on 500 plus transactions, who closed his seller account just before Christmas and before any goods were sent..took the money and ran).
I don't think this hobby will ever die (I hope not anyway...I enjoy it too much and there will always be a demand, and there will always be modellers who are willing to pay a premium for a certain kit), but the manufacturers probably need to think of ways to encourage new and younger modellers, the only way to do this to those on a limited income (from pocket money earners to first year apprentices) is to make the kits cheaper, or at least re-issue some of the older kits...hey, they've already got the molds, already paid the licensing fees, so aside from the slight increased cost of raw materials (and when spread across tens of thousands of model kits, that IS a SLIGHT increase in the cost of raw materials), I see no reason why a 'beginner' kit from Tamiya couldn't be on the shelves for under $35 AUD! Maybe delete the engine sprue and seal the bonnet or something.
Maybe we suffer a little on this side of the planet....the freight alone on a new Tamiya kit from the US, or Japan for that matter, can easily be close enough to $40 in some cases. But consider this....$30 to $40 freight from Japan for a 1/24 plastic kit....now I just purchased a 1/8 scale Pocher Ferrari F40 from Germany (yes, metal, so weighs abouyt the same as at least 20 Tamiya kits and is packed in 2 boxes with atotal measurement of about 2.5 feet long), and the freight was $85, airmail by TNT and insured!
Maybe I'm sounding a little old fashioned...I'm only 33 and not an old man (though my wife may argue!)..and romaticising the whole thing..but I just remember the joy a new model brought me when I was aged 10, my parents knew I didn't have the skills to make it a masterpiece, but it was cheap enough, and I feel a little sorry that my kids won't get to enjoy it the same way.
Now, time to que the song...light a candle.....raise your hands.......and sing...'we are the world, we are the children'.......
Well. the times they are a changi'n......as the song goes!
All points very valid...I just used to remember the thrill of saving a bit of pocket money (at $2.50 a week this took a while!), going to the LHS and picking up some sort of Ferrari, Lamborghini, or other car that I could only dream about (or mostly only saw on the Cannonball Run Movies!), getting it home, diving right in and doing all the wrong things, brush painting the body, superglue the windscreen and all that..totally buggering it up, but I was very proud of my new creation, which, overall, was very cheap...I would love for my kids to be able to experience the same thing, the same joy...but kits are almost too expensive to give to a kid just to 'bugger it up'....yes I know, kids need to learn and all that....so I don't mean that in a bad way....also the joy of saving the money and going and walking into the shop and walking out with something was often it's own reward...now the process is much different....save their money for however long...mum and dad inevitably have to tip in a few $$$...go to the shops to see what is available, then go home and do the usual searches of Ebay, HLJ etc, then wait a few more weeks for the thing to arrive, and hope like hell in the meantime it actually does arrive...or at least arrives undamaged, or worse, explaining to the above mentioned kid why it didn't arrive because of a dodgy seller on Ebay and they've done their cash! (yes, yes, all usual precautions taken, but I've been ripped off by a seller with over 99% positive feedback on 500 plus transactions, who closed his seller account just before Christmas and before any goods were sent..took the money and ran).
I don't think this hobby will ever die (I hope not anyway...I enjoy it too much and there will always be a demand, and there will always be modellers who are willing to pay a premium for a certain kit), but the manufacturers probably need to think of ways to encourage new and younger modellers, the only way to do this to those on a limited income (from pocket money earners to first year apprentices) is to make the kits cheaper, or at least re-issue some of the older kits...hey, they've already got the molds, already paid the licensing fees, so aside from the slight increased cost of raw materials (and when spread across tens of thousands of model kits, that IS a SLIGHT increase in the cost of raw materials), I see no reason why a 'beginner' kit from Tamiya couldn't be on the shelves for under $35 AUD! Maybe delete the engine sprue and seal the bonnet or something.
Maybe we suffer a little on this side of the planet....the freight alone on a new Tamiya kit from the US, or Japan for that matter, can easily be close enough to $40 in some cases. But consider this....$30 to $40 freight from Japan for a 1/24 plastic kit....now I just purchased a 1/8 scale Pocher Ferrari F40 from Germany (yes, metal, so weighs abouyt the same as at least 20 Tamiya kits and is packed in 2 boxes with atotal measurement of about 2.5 feet long), and the freight was $85, airmail by TNT and insured!
Maybe I'm sounding a little old fashioned...I'm only 33 and not an old man (though my wife may argue!)..and romaticising the whole thing..but I just remember the joy a new model brought me when I was aged 10, my parents knew I didn't have the skills to make it a masterpiece, but it was cheap enough, and I feel a little sorry that my kids won't get to enjoy it the same way.
Now, time to que the song...light a candle.....raise your hands.......and sing...'we are the world, we are the children'.......
hirofkd
04-26-2008, 05:56 PM
Sounds like you are ripped off.
When I bought 2 Fujimi kits (the detailed 126C2 and the curbside F430 Challenge), Finisher's Urethan Clear and 2 bottles of GSI paints, it fit the weight bracket of 1.8-1.9kg, and I only paid 1980 yen for Small Packet SAL from Shizuoka Japan to Houston, TX. Since Australia and the US are within the same distance group according to the Japanese postal service clasification, you shouldn't be paying $40 for one Tamiya kit, unless you used the expensive express mail.
FYI, here's my shipping chart I post here every now and then.
http://i21.photobucket.com/albums/b258/hirofkd/misc/shipping2.gif
(http://i21.photobucket.com/albums/b258/hirofkd/misc/shipping2.gif)
When I bought 2 Fujimi kits (the detailed 126C2 and the curbside F430 Challenge), Finisher's Urethan Clear and 2 bottles of GSI paints, it fit the weight bracket of 1.8-1.9kg, and I only paid 1980 yen for Small Packet SAL from Shizuoka Japan to Houston, TX. Since Australia and the US are within the same distance group according to the Japanese postal service clasification, you shouldn't be paying $40 for one Tamiya kit, unless you used the expensive express mail.
FYI, here's my shipping chart I post here every now and then.
http://i21.photobucket.com/albums/b258/hirofkd/misc/shipping2.gif
(http://i21.photobucket.com/albums/b258/hirofkd/misc/shipping2.gif)
jano11
04-27-2008, 05:35 AM
Let's make on thing clear, oil prices have nothing to do with kits getting about 20% more expensive, and this is about the price charged by the kit manufacturers not hobby shops.
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
cyberkid
04-27-2008, 07:21 AM
Let's make on thing clear, oil prices have nothing to do with kits getting about 20% more expensive, and this is about the price charged by the kit manufacturers not hobby shops.
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
:worshippy
took the words right out of my mouth.
If they upped the prices like 5-10% fine I could live with that... but seeing some of you guys pay 20-100% more than I do really pisses me off.
I live in Asia and get the kits at around 60% the cost you guys do... I rarely shop on HLJ or any of the other Jap or HK estores for kits (even if they are OOP). Why? Because its a lot cheeper to get it off the shelf of my LHS or from a Yahoo Taiwan seller.
Although I love Tamiya stuff, but I'm REALLY getting pissed at them. Prices for the sh#t arse kits (I mean in numbers) they are putting out now is a joke.
Frankly this isn't just going on with the automotive models, this is going on with a lot of japanese modeling companies....
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
:worshippy
took the words right out of my mouth.
If they upped the prices like 5-10% fine I could live with that... but seeing some of you guys pay 20-100% more than I do really pisses me off.
I live in Asia and get the kits at around 60% the cost you guys do... I rarely shop on HLJ or any of the other Jap or HK estores for kits (even if they are OOP). Why? Because its a lot cheeper to get it off the shelf of my LHS or from a Yahoo Taiwan seller.
Although I love Tamiya stuff, but I'm REALLY getting pissed at them. Prices for the sh#t arse kits (I mean in numbers) they are putting out now is a joke.
Frankly this isn't just going on with the automotive models, this is going on with a lot of japanese modeling companies....
rockinanko
04-27-2008, 09:54 AM
gee, for a moment i thought this price increase is a norm due to progressive economy inflation around the world now. you talk about fuel prices, rice imports etc...everything certainly had gone up nowadays.
but one thing remains, and that's my pay check. no changes for the past few years, and my money's getting smaller & smaller...i'm not working hard enough or something. i thought this was the main reason why i felt kit prices are higher & higher, because of my earnings' standstill...not in tandem with the inflation.
but with so many AF members blaming the point of expensive-ness, i felt relieved here...that the problem is NOT with my pay check, and i'm still OK!
(i wonder if there's anything we the AF can do about this trend, besides raising our concerns & unhappiness on this issue.)
marc
SGP
but one thing remains, and that's my pay check. no changes for the past few years, and my money's getting smaller & smaller...i'm not working hard enough or something. i thought this was the main reason why i felt kit prices are higher & higher, because of my earnings' standstill...not in tandem with the inflation.
but with so many AF members blaming the point of expensive-ness, i felt relieved here...that the problem is NOT with my pay check, and i'm still OK!
(i wonder if there's anything we the AF can do about this trend, besides raising our concerns & unhappiness on this issue.)
marc
SGP
drunken monkey
04-27-2008, 01:46 PM
Let's make on thing clear, oil prices have nothing to do with kits getting about 20% more expensive, and this is about the price charged by the kit manufacturers not hobby shops.
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
i) oil is used in pretty much every stage of the process from manufacturing of goods up until it hits the shelves; it isn't just about models being plastic.
ii) internationally, oil is traded in US$. What the increase is in Euros or Yen is not relevant.
iii) because of oil price increases now, all corporations have to make assumptions about what the prices are going to be like in the future because they operate in a much longer time-frame than you and I and because oil pretty much affects everything.
While there is a certain truth to the increase in prices being simply imposed by the manufacturers, it isn't entirely arbitary which is what you are suggesting.
Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?
Yes a kit is made of Plastic which is made of oil, but the plastic in that kit doesn't cost more than 2$!
Not mentioning that the oil prices sky rocketed in US$ but much less in Euros or Yen.
Generally, prices go up because of the need for companies to please their share holders with higher profits every 3 months! It's all because of the economic climate, a very unhealthy one which brought us to what we see today, a recession.
End of rant! ;)
i) oil is used in pretty much every stage of the process from manufacturing of goods up until it hits the shelves; it isn't just about models being plastic.
ii) internationally, oil is traded in US$. What the increase is in Euros or Yen is not relevant.
iii) because of oil price increases now, all corporations have to make assumptions about what the prices are going to be like in the future because they operate in a much longer time-frame than you and I and because oil pretty much affects everything.
While there is a certain truth to the increase in prices being simply imposed by the manufacturers, it isn't entirely arbitary which is what you are suggesting.
Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?
chola
04-27-2008, 04:33 PM
G'day,
I think we all mostly understand that inflation is affected world wide now, seeing as the planet has gotten smaller! Oil prices and manufacturing costs generally increase and I personally cannot see it improving....in light of this though, how many Tamiya kits are now MADE in Japan as opposed to China? I'll bet hardly any, but I am willing to be corrected....what was the ratio 10 years ago? Obviously china has much lower labour costs that could easily offset any increase in fuel prices.
Yes, company shareholders and needs to meet annual profit forecasts will increase the price of kits....though question remains...are these companies going to price themselves out of business?
"Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?"
Could be..they used to say that about Rolls Royces!
Affordability is one aspect, albeit a major one, though I think you also need to consider if the price is worth it? This will vary from person to person of course.
Yes, oil is traded / priced as US dollars per barrel, though the current exchange rate to the various countries does have bearing, as it is the inital currency from which it is converted from. Obvioulsy if the price is $100 USD a barrel, yet this equates to $130 in the domestic currency, then, in siomple terms, it is that $130 that the end consumer has to end up compensating for. If the Euro, GBP, AUD, JPY etc is stronger against the USD, in theory, the end product, fuel, plastics, manufacturing etc should generally be cheaper, though these savings are very rarely, if ever passed on. Oil prices is probably going to go down in history as the biggest cop-out this century!
Rockinanko...don't feel bad...my income hasn't changed greatly in the last 4 years, but kit prices sure as hell have!
All you need to do is listen to a financial report on the news, usually you will find figure like wages have increase about a quarter of that of inflation inflation...combine that with the current interest rates, don't be confused that mortgage interest rates have gone up...many of you young blokes (and older ones) who have a car loan will also be feeling the pinch.
Everything is going up in price, but I still reckon for long-term survivability something needs to be done about kit prices..maybe like I said before, have the 'full-house' Enzo's, F-50's, Porsches etc, price them accordingly...at least in the meantime people will still buy them, but have a basic kit version, or re-release old kits (I reckon plenty of modellers would love to get a few of the older ones).
I think we all mostly understand that inflation is affected world wide now, seeing as the planet has gotten smaller! Oil prices and manufacturing costs generally increase and I personally cannot see it improving....in light of this though, how many Tamiya kits are now MADE in Japan as opposed to China? I'll bet hardly any, but I am willing to be corrected....what was the ratio 10 years ago? Obviously china has much lower labour costs that could easily offset any increase in fuel prices.
Yes, company shareholders and needs to meet annual profit forecasts will increase the price of kits....though question remains...are these companies going to price themselves out of business?
"Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?"
Could be..they used to say that about Rolls Royces!
Affordability is one aspect, albeit a major one, though I think you also need to consider if the price is worth it? This will vary from person to person of course.
Yes, oil is traded / priced as US dollars per barrel, though the current exchange rate to the various countries does have bearing, as it is the inital currency from which it is converted from. Obvioulsy if the price is $100 USD a barrel, yet this equates to $130 in the domestic currency, then, in siomple terms, it is that $130 that the end consumer has to end up compensating for. If the Euro, GBP, AUD, JPY etc is stronger against the USD, in theory, the end product, fuel, plastics, manufacturing etc should generally be cheaper, though these savings are very rarely, if ever passed on. Oil prices is probably going to go down in history as the biggest cop-out this century!
Rockinanko...don't feel bad...my income hasn't changed greatly in the last 4 years, but kit prices sure as hell have!
All you need to do is listen to a financial report on the news, usually you will find figure like wages have increase about a quarter of that of inflation inflation...combine that with the current interest rates, don't be confused that mortgage interest rates have gone up...many of you young blokes (and older ones) who have a car loan will also be feeling the pinch.
Everything is going up in price, but I still reckon for long-term survivability something needs to be done about kit prices..maybe like I said before, have the 'full-house' Enzo's, F-50's, Porsches etc, price them accordingly...at least in the meantime people will still buy them, but have a basic kit version, or re-release old kits (I reckon plenty of modellers would love to get a few of the older ones).
drunken monkey
04-27-2008, 05:00 PM
how many Tamiya kits are now MADE in Japan as opposed to China?
not the most difficult of things to check; have a look on the boxes.
And it's not just oil costs that have an effect; it's just the thing that affects the most areas.
Most basic area, what powers most powerstations?
Another big reason for cost increases in usually to do with new taxes. Have you looked at new fuel taxes recently?
Also, as I seemed to have failed to answer the initial posting question.
Nope; I haven't noticed much change that isn't in line with inflation.
not the most difficult of things to check; have a look on the boxes.
And it's not just oil costs that have an effect; it's just the thing that affects the most areas.
Most basic area, what powers most powerstations?
Another big reason for cost increases in usually to do with new taxes. Have you looked at new fuel taxes recently?
Also, as I seemed to have failed to answer the initial posting question.
Nope; I haven't noticed much change that isn't in line with inflation.
jmwallac
04-27-2008, 06:16 PM
All you need to do is listen to a financial report on the news, usually you will find figure like wages have increase about a quarter of that of inflation inflation...combine that with the current interest rates, don't be confused that mortgage interest rates have gone up...many of you young blokes (and older ones) who have a car loan will also be feeling the pinch.
Actually, interest rates are historically quite low. Here in the US, the Fed is slashing rates in an effort to free up the log jam that is the credit market. Unfortunately, the rates are tending up lately. Why? Because the mortgages (and car loans, student loans, etc.) get packaged up into bonds and sold (CDO, CMO, etc.). Investors don't want to touch any of this stuff right now, and I'm guessing it will be some time before this passes.
I wonder if anyone has figured out how many gallons of oil it takes to manufacture and deliver one plastic kit? Refining of the plastic aside, how many trains, boats, planes, trucks does it take to get it here? I'm quite sure higher prices are here to stay. It's unfortunate that the higher cost of kits translates into fewer sales. It's a vicious cycle of raising prices and lower demand. It would be interesting to see what percentage of a kit is profit to the manufacturer, licensing and royalty fees, transportation costs, manufacturing costs dealer markup etc. I'm guessing the profit to the manufacturer is the smallest. And honestly, I can't fault someone for trying to make money. Revell, Tamiya, Fujimi, etc. aren't charities. They are the ones putting up massive amounts of capital for tooling, R&D, advertising, manufacturing, inventory, etc. Can you fault them for getting a return on their investment? I'm guessing that's why we see fewer kits from Tamiya. They are most likely making higher profit margins on the R/C cars than plastic kits. Whether they are listed on a stock exchange or a closely held private company, the object is to make a profit. Don't get me wrong...I'd still like to have cheaper, more accessible kits; even if it means curbside with decals for the dashboard!
I'm glad that I've amassed a collection of about 60 kits. I'm like my own little hobby store now. And it's going to take about 30 years to finish that many kits....:runaround:
Actually, interest rates are historically quite low. Here in the US, the Fed is slashing rates in an effort to free up the log jam that is the credit market. Unfortunately, the rates are tending up lately. Why? Because the mortgages (and car loans, student loans, etc.) get packaged up into bonds and sold (CDO, CMO, etc.). Investors don't want to touch any of this stuff right now, and I'm guessing it will be some time before this passes.
I wonder if anyone has figured out how many gallons of oil it takes to manufacture and deliver one plastic kit? Refining of the plastic aside, how many trains, boats, planes, trucks does it take to get it here? I'm quite sure higher prices are here to stay. It's unfortunate that the higher cost of kits translates into fewer sales. It's a vicious cycle of raising prices and lower demand. It would be interesting to see what percentage of a kit is profit to the manufacturer, licensing and royalty fees, transportation costs, manufacturing costs dealer markup etc. I'm guessing the profit to the manufacturer is the smallest. And honestly, I can't fault someone for trying to make money. Revell, Tamiya, Fujimi, etc. aren't charities. They are the ones putting up massive amounts of capital for tooling, R&D, advertising, manufacturing, inventory, etc. Can you fault them for getting a return on their investment? I'm guessing that's why we see fewer kits from Tamiya. They are most likely making higher profit margins on the R/C cars than plastic kits. Whether they are listed on a stock exchange or a closely held private company, the object is to make a profit. Don't get me wrong...I'd still like to have cheaper, more accessible kits; even if it means curbside with decals for the dashboard!
I'm glad that I've amassed a collection of about 60 kits. I'm like my own little hobby store now. And it's going to take about 30 years to finish that many kits....:runaround:
hirofkd
04-28-2008, 03:00 AM
G'day,
how many Tamiya kits are now MADE in Japan as opposed to China? I'll bet hardly any, but I am willing to be corrected....
Well, you might be surprised, but Tamiya still manufacturers most of their kits in Japan. The first few batches that we buy from HLJ and Rainbow 10 are definitely made at Tamiya's Shizuoka plant. (I have two Enzo kits, one made in Japan and the other made in Philippines.) The tooling is eventually shipped to Philippines for later batches and also for the oversea releases.
FYI, All Fujimi kits are manufactured in Japan (except for the pre-painted resin engines and PE parts), and the company proudly boasts the business practice (hence high kit prices to keep the local manufacturing jobs). Increasing number of Aoshima kits are now made in China (therefore slow re-stocking), but some kits are still made in Japan.
One of the reasons is that the plastic manufacturing in Shizuoka is still active and healthy, and also Japanese are generally iffy about everything "made-in-China" because of geopolitical reasons.
As for the business practice, "generally speaking," Japanese companies are not shareholder-oriented, and the nation's capitalism is quite different from the west's (, making it quite an interesting study subject, actually.)
Another thing is that Tamiya, Fujimi, Hasegawa and Aoshima aren't publicly traded, so there's no shareholders to suck up to, except for the local banks, which probably respect this Japanese thing called, "social harmony." Plus, plastic model business barely reaches the breakeven (except for Bandai), so there's no higher profit to please the investors every 3 months.
how many Tamiya kits are now MADE in Japan as opposed to China? I'll bet hardly any, but I am willing to be corrected....
Well, you might be surprised, but Tamiya still manufacturers most of their kits in Japan. The first few batches that we buy from HLJ and Rainbow 10 are definitely made at Tamiya's Shizuoka plant. (I have two Enzo kits, one made in Japan and the other made in Philippines.) The tooling is eventually shipped to Philippines for later batches and also for the oversea releases.
FYI, All Fujimi kits are manufactured in Japan (except for the pre-painted resin engines and PE parts), and the company proudly boasts the business practice (hence high kit prices to keep the local manufacturing jobs). Increasing number of Aoshima kits are now made in China (therefore slow re-stocking), but some kits are still made in Japan.
One of the reasons is that the plastic manufacturing in Shizuoka is still active and healthy, and also Japanese are generally iffy about everything "made-in-China" because of geopolitical reasons.
As for the business practice, "generally speaking," Japanese companies are not shareholder-oriented, and the nation's capitalism is quite different from the west's (, making it quite an interesting study subject, actually.)
Another thing is that Tamiya, Fujimi, Hasegawa and Aoshima aren't publicly traded, so there's no shareholders to suck up to, except for the local banks, which probably respect this Japanese thing called, "social harmony." Plus, plastic model business barely reaches the breakeven (except for Bandai), so there's no higher profit to please the investors every 3 months.
rockinanko
04-28-2008, 03:33 AM
Heads up gentlemen!
we're having a lesson or two on the fundamentals of economics here!
thank you all for sharing such an in-depth view on the impact from crude oil, right own to those kit boxes in my closet!
one thing's for sure, i'll treat every kit (oil) my utmost respect & caution whenever i wanna start a build from now on. i must be very sure & 100% confident that i will not screw-up the build. i must build the perfect model, at least to my own standard. i must find ways to preserve the model (oil) so it can last very very long. i must............i............must................. .
gee, modeling (oil) IS an investment!
marc:lol2:
SGP
we're having a lesson or two on the fundamentals of economics here!
thank you all for sharing such an in-depth view on the impact from crude oil, right own to those kit boxes in my closet!
one thing's for sure, i'll treat every kit (oil) my utmost respect & caution whenever i wanna start a build from now on. i must be very sure & 100% confident that i will not screw-up the build. i must build the perfect model, at least to my own standard. i must find ways to preserve the model (oil) so it can last very very long. i must............i............must................. .
gee, modeling (oil) IS an investment!
marc:lol2:
SGP
jano11
04-28-2008, 04:03 AM
i) oil is used in pretty much every stage of the process from manufacturing of goods up until it hits the shelves; it isn't just about models being plastic.
I thought we were talking about model kits here!
Molds aren't made of oil! The injection machines aren't made of oil either! Only the kit is made of oil!
When 160 liters of crude oil cost about 120$, how much it costs 1/4 or 1/2 a liter?! You do the maths!
ii) internationally, oil is traded in US$. What the increase is in Euros or Yen is not relevant.
What?! Each country will pay for it with it's own currency and oil prices in EURO and YEN did not increase as much as in USD (given that USD lost 30% to the EURO in less than a year).
iii) because of oil price increases now, all corporations have to make assumptions about what the prices are going to be like in the future because they operate in a much longer time-frame than you and I and because oil pretty much affects everything.
Well, the prices that are thrown in the news today are usually for the stock they get in 3 or more months.
However I was talking about the price of a kit when it leaves the manufacturers building, not after it travelled all around the world!
So again, the costs involved in making a model are:
1. Licensing from the car manufacturer
2. Conception of the model
3. creating the mold
4. injecting the polystirene into the molds
5. packaging the model
Only phase 4 includes use of oil, about 1/4 to 1/2 a liter of it!
How much does that oil cost? and how much is the price difference for it since last year? Not even 50 cents!
While there is a certain truth to the increase in prices being simply imposed by the manufacturers, it isn't entirely arbitary which is what you are suggesting.
I didn't say it's entirely arbitrary! :rolleyes:
I said that the increase of the price of OIL isn't the one that is driving the price of kits up by 20% right from the manufacturer!
What I said is that these manufacturers need to increase their profits every year (even every 3 months) to keep their shareholders happy. And unless they move their production to China, India or even Africa they can't do this without continualy increasing the prices!
The oil prices are just the right excuse for it but not the main reason.
That's all I'm saying.
Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?
Old sayings usualy do not apply anymore in modern times because, sadly, the philosophy of life changed.
Did you ever buy something without knowing the price?!
Maybe toothpics.
I thought we were talking about model kits here!
Molds aren't made of oil! The injection machines aren't made of oil either! Only the kit is made of oil!
When 160 liters of crude oil cost about 120$, how much it costs 1/4 or 1/2 a liter?! You do the maths!
ii) internationally, oil is traded in US$. What the increase is in Euros or Yen is not relevant.
What?! Each country will pay for it with it's own currency and oil prices in EURO and YEN did not increase as much as in USD (given that USD lost 30% to the EURO in less than a year).
iii) because of oil price increases now, all corporations have to make assumptions about what the prices are going to be like in the future because they operate in a much longer time-frame than you and I and because oil pretty much affects everything.
Well, the prices that are thrown in the news today are usually for the stock they get in 3 or more months.
However I was talking about the price of a kit when it leaves the manufacturers building, not after it travelled all around the world!
So again, the costs involved in making a model are:
1. Licensing from the car manufacturer
2. Conception of the model
3. creating the mold
4. injecting the polystirene into the molds
5. packaging the model
Only phase 4 includes use of oil, about 1/4 to 1/2 a liter of it!
How much does that oil cost? and how much is the price difference for it since last year? Not even 50 cents!
While there is a certain truth to the increase in prices being simply imposed by the manufacturers, it isn't entirely arbitary which is what you are suggesting.
I didn't say it's entirely arbitrary! :rolleyes:
I said that the increase of the price of OIL isn't the one that is driving the price of kits up by 20% right from the manufacturer!
What I said is that these manufacturers need to increase their profits every year (even every 3 months) to keep their shareholders happy. And unless they move their production to China, India or even Africa they can't do this without continualy increasing the prices!
The oil prices are just the right excuse for it but not the main reason.
That's all I'm saying.
Perhaps there is truth in the old saying about if you have to ask what it costs, you can't afford it?
Old sayings usualy do not apply anymore in modern times because, sadly, the philosophy of life changed.
Did you ever buy something without knowing the price?!
Maybe toothpics.
jano11
04-28-2008, 04:10 AM
Another thing is that Tamiya, Fujimi, Hasegawa and Aoshima aren't publicly traded, so there's no shareholders to suck up to, except for the local banks, which probably respect this Japanese thing called, "social harmony." Plus, plastic model business barely reaches the breakeven (except for Bandai), so there's no higher profit to please the investors every 3 months.
That's good news, I hope it stays that way.
That's good news, I hope it stays that way.
drunken monkey
04-28-2008, 09:39 AM
Every stage of production requires oil.
The power that runs the power stations that run the factories use oil. Think about that. Light, ventilation, machinary, the weird multi-purpose loos and hand basins that they have in Japan; all are powered, essentially, by oil.
The same holds true for the making of the boxes, the printing of instructions, the vehicles that transport the finished kit to the shelves; in fact, pretty much everything.
Increase in oil prices affects every stage of manufacture and the transportation.
Increase in oil prices doesn't just make the plastic more expensive, it makes everything more expensive. When you equate that simple fact into a complex process such as manufacture and subsequent transportation of those goods around the world and the percentage increase in costs adds up. That is also of course, ignoring the changes in tax on transportation, fuel and airports/ports etc that have also been introduced (i.e increased) recently.
If you're only considering the base cost of the plastic in a kit being the only relevent factor relating to oil price increase then you are simply not looking deep enough at the impact of oil price increase.
Also, considering that as of today, oils prices have gone up pretty much 20% since last year, I don't think that kit prices going up 20% over the past 2 odd years is actually that bad.
The power that runs the power stations that run the factories use oil. Think about that. Light, ventilation, machinary, the weird multi-purpose loos and hand basins that they have in Japan; all are powered, essentially, by oil.
The same holds true for the making of the boxes, the printing of instructions, the vehicles that transport the finished kit to the shelves; in fact, pretty much everything.
Increase in oil prices affects every stage of manufacture and the transportation.
Increase in oil prices doesn't just make the plastic more expensive, it makes everything more expensive. When you equate that simple fact into a complex process such as manufacture and subsequent transportation of those goods around the world and the percentage increase in costs adds up. That is also of course, ignoring the changes in tax on transportation, fuel and airports/ports etc that have also been introduced (i.e increased) recently.
If you're only considering the base cost of the plastic in a kit being the only relevent factor relating to oil price increase then you are simply not looking deep enough at the impact of oil price increase.
Also, considering that as of today, oils prices have gone up pretty much 20% since last year, I don't think that kit prices going up 20% over the past 2 odd years is actually that bad.
jano11
04-28-2008, 01:15 PM
I would have thought that they use nuclear energy or burn gas to produce energy.
Do they actually burn oil to produce energy?! Sounds a bit far fetched to me given the financial viability of other resources.
Do they actually burn oil to produce energy?! Sounds a bit far fetched to me given the financial viability of other resources.
drunken monkey
04-28-2008, 01:42 PM
for the UK:
oil provides approximately 40% of our energy and coal provides approximately 30%. Again, the figures for where your energy comes from in your own country shouldn't be too hard to find.
for those interested in japan's figures: link (http://www.eia.doe.gov/emeu/cabs/Japan/Profile.html)
oil provides approximately 40% of our energy and coal provides approximately 30%. Again, the figures for where your energy comes from in your own country shouldn't be too hard to find.
for those interested in japan's figures: link (http://www.eia.doe.gov/emeu/cabs/Japan/Profile.html)
jano11
04-28-2008, 04:10 PM
Sorry for getting of topic, I'm just impressed (not positively) how much of the energy used in Japan is coming from fosil fuel (oil+coal+gas).
MPWR
04-28-2008, 04:56 PM
I'm just impressed (not positively) how much of the energy used in Japan is coming from fosil fuel (oil+coal+gas).
Where is it that you thought energy came from?
Where is it that you thought energy came from?
jmwallac
04-28-2008, 08:17 PM
Where is it that you thought energy came from?
Mr. Fusion? Political hot air? Good intentions?
Mr. Fusion? Political hot air? Good intentions?
chola
04-29-2008, 12:35 AM
G'day again.....
Mr. Fusion? Political hot air? Good intentions? :grinyes: good call.
So, basically we are all aware that there is an increased cost for the raw materials, production and transport for model kits....however it is worked out, some of them still seem pretty expensive!
I certainly won't deny anyone or any company from trying to make a profit (I've been in business myself previously and that is why they exist), but there is making a profit, and there is profiteering! I still maintain that the increased costs of getting the raw materials right through to the end product appearing on the store shelves, when spread across the huge number of model kits they produce from the moulds, should still represent a minimal increase. Of course this is all speculation, as we would never really know the full figures of production (not unless you were a shareholder).
In Australia interest rates have actually risen at least 5 times in the past 12 months, wages have not (not to any great extent anyway, definitely not enough to offset the interest rate increases - does that ever happen)! Makes it a bit harder to justify the purchase of an $80 model kit unfortunately.
There just seems to be no end in sight for increased costs....
Mr. Fusion? Political hot air? Good intentions? :grinyes: good call.
So, basically we are all aware that there is an increased cost for the raw materials, production and transport for model kits....however it is worked out, some of them still seem pretty expensive!
I certainly won't deny anyone or any company from trying to make a profit (I've been in business myself previously and that is why they exist), but there is making a profit, and there is profiteering! I still maintain that the increased costs of getting the raw materials right through to the end product appearing on the store shelves, when spread across the huge number of model kits they produce from the moulds, should still represent a minimal increase. Of course this is all speculation, as we would never really know the full figures of production (not unless you were a shareholder).
In Australia interest rates have actually risen at least 5 times in the past 12 months, wages have not (not to any great extent anyway, definitely not enough to offset the interest rate increases - does that ever happen)! Makes it a bit harder to justify the purchase of an $80 model kit unfortunately.
There just seems to be no end in sight for increased costs....
klutz_100
04-29-2008, 02:10 AM
...but there is making a profit, and there is profiteering!
Which is nicely counterbalanced by the laws of supply and demand in a free market economy and the last time I checked the newspapers, the vast majority of us are all in living in one thank goodness.
Which is nicely counterbalanced by the laws of supply and demand in a free market economy and the last time I checked the newspapers, the vast majority of us are all in living in one thank goodness.
jano11
04-29-2008, 05:15 AM
Where is it that you thought energy came from?
Where I live most of the energy produced is nuclear and hydro energy based, and some gas, but little oil (only for transportation fuel)!
Where I live most of the energy produced is nuclear and hydro energy based, and some gas, but little oil (only for transportation fuel)!
klutz_100
04-29-2008, 05:28 AM
Where I live most of the energy produced is nuclear and hydro energy based, and some gas, but little oil (only for transportation fuel)!
Andy's from the USA - their idea of alternative energy and a green planet is "gas swigging" instead of "gas guzzling" :evillol: :D ;) j/k
Can anyone say "Kyoto Protocol" 3 times quickly in a row with an American accent?...
Andy's from the USA - their idea of alternative energy and a green planet is "gas swigging" instead of "gas guzzling" :evillol: :D ;) j/k
Can anyone say "Kyoto Protocol" 3 times quickly in a row with an American accent?...
hirofkd
04-29-2008, 01:33 PM
...huge number of model kits they produce...
According to Tamiya News No.6, back in Nov.1967, Tamiya initially produced 10,000 copies of the 1/12 Honda F1, and it was immediately sold out, forcing the company to produce additional 30,000 kits by the end of the year, which made the total of 40,000 within just that year.
I don't have any firm numbers of today, but I know a limited re-run of F1 kits are either 2000 or 4000 units, and I doubt brand-new kits are any better. These are very rough numbers, and vary by the popularity of kits, but at least you can "guess" how small the model car market has become in 4 decades.
Meanwhile, Bandai sold 1 million(!) 1/144 scale Strike Gundam model kits between fall 2002 and spring 2003. Where all those casual builders go? I have no idea.
According to Tamiya News No.6, back in Nov.1967, Tamiya initially produced 10,000 copies of the 1/12 Honda F1, and it was immediately sold out, forcing the company to produce additional 30,000 kits by the end of the year, which made the total of 40,000 within just that year.
I don't have any firm numbers of today, but I know a limited re-run of F1 kits are either 2000 or 4000 units, and I doubt brand-new kits are any better. These are very rough numbers, and vary by the popularity of kits, but at least you can "guess" how small the model car market has become in 4 decades.
Meanwhile, Bandai sold 1 million(!) 1/144 scale Strike Gundam model kits between fall 2002 and spring 2003. Where all those casual builders go? I have no idea.
jmwallac
04-29-2008, 03:23 PM
Can anyone say "Kyoto Protocol" 3 times quickly in a row with an American accent?...
What does an american accent sound like anyway? :icon16: Where I live, almost all the energy comes from coal, although we get a tiny portion from wind. I don't think many will adopt green energy any time soon. Even with gas approaching $4/gal, people still say they love their SUVs and the oil companies should make less profit (actual quote I read in a newspaper). Until that logic changes, we're in for more of the same; just with a higher price tag.
What does an american accent sound like anyway? :icon16: Where I live, almost all the energy comes from coal, although we get a tiny portion from wind. I don't think many will adopt green energy any time soon. Even with gas approaching $4/gal, people still say they love their SUVs and the oil companies should make less profit (actual quote I read in a newspaper). Until that logic changes, we're in for more of the same; just with a higher price tag.
tonioseven
04-29-2008, 03:32 PM
:p I have my own neverending supply of natural gas.
jano11
04-29-2008, 03:43 PM
What does an american accent sound like anyway? :icon16: Where I live, almost all the energy comes from coal, although we get a tiny portion from wind. I don't think many will adopt green energy any time soon. Even with gas approaching $4/gal, people still say they love their SUVs and the oil companies should make less profit (actual quote I read in a newspaper). Until that logic changes, we're in for more of the same; just with a higher price tag.
Some people think they better die than change a bit!
Some people think they better die than change a bit!
chola
04-29-2008, 04:14 PM
G'day,
Wow....ask a question...get lessons in international currency exchange and alternative energy sources.....maybe the oil companies should check out this thread.....
Kyoto Protocol...sounds like a disease! Don't worry, put some cream on that and it'll clear up in a few days!
Actually, speaking of alternative energy and all that, and a little off topic, has anyone seen the new(ish) Tesla electric car...that thing looks bloody awesome, bodied and engineered by Lotus, and the drive / power system developed by the kid who invented Paypal and sold it to Ebay (or at least the team he put together). Is fast too, quicker than an F430 Ferrari apparently...and being fullly electric, no lag! And a little over $100,000 USD (about the same price as a couple of Tamiya kits are likely to be in a few years I reckon :biggrin: ), sounds like a good thing!
Ok, back on track, sorry guys......I still reckon there is a bit of profiteering going on. Yeah, supply and demand will, in most cases set prices for products and services, where there is a healthy range of competition, however, in areas where the product outlets are limited (usuallysmaller more isolated areas), profiteering can take over (not in all cases though). Where I live, have to drive an hour if you want any half decent selection of kits, and in that area, you only really have the choice of 2 hobby shops...so the owners are of the opinion ..take it or leave it! Usually, I leave it!
Wow....ask a question...get lessons in international currency exchange and alternative energy sources.....maybe the oil companies should check out this thread.....
Kyoto Protocol...sounds like a disease! Don't worry, put some cream on that and it'll clear up in a few days!
Actually, speaking of alternative energy and all that, and a little off topic, has anyone seen the new(ish) Tesla electric car...that thing looks bloody awesome, bodied and engineered by Lotus, and the drive / power system developed by the kid who invented Paypal and sold it to Ebay (or at least the team he put together). Is fast too, quicker than an F430 Ferrari apparently...and being fullly electric, no lag! And a little over $100,000 USD (about the same price as a couple of Tamiya kits are likely to be in a few years I reckon :biggrin: ), sounds like a good thing!
Ok, back on track, sorry guys......I still reckon there is a bit of profiteering going on. Yeah, supply and demand will, in most cases set prices for products and services, where there is a healthy range of competition, however, in areas where the product outlets are limited (usuallysmaller more isolated areas), profiteering can take over (not in all cases though). Where I live, have to drive an hour if you want any half decent selection of kits, and in that area, you only really have the choice of 2 hobby shops...so the owners are of the opinion ..take it or leave it! Usually, I leave it!
drunken monkey
04-29-2008, 04:30 PM
I don't think there is a big enough modelling collective, especially automotive modelling, there to support more than the occasional shelf in the occasional die-cast and model shop. As mentioned elsewhere, here in London, with a population of more than 10 million people, there are probably less than 5 shops that can be called a decent model shop and even then, they're not just model kit shops.
Same is true for the other stores around the country that I buy from; the biggest stock everything and happen to carry a healthy selection of car kits. As far as I know, only Hiroboy and Grand Prix Models are dedicated automotive model stores in the whole of the UK.
I wonder how much money places like HLJ and Hobbysearch make on car kits compared to their other stock lines.
Same is true for the other stores around the country that I buy from; the biggest stock everything and happen to carry a healthy selection of car kits. As far as I know, only Hiroboy and Grand Prix Models are dedicated automotive model stores in the whole of the UK.
I wonder how much money places like HLJ and Hobbysearch make on car kits compared to their other stock lines.
pedrop
04-29-2008, 11:00 PM
The weak dollar has driven foreign kits' costs crazy in the USA. Looks like my kit collection has been has been my best performing investment!
I don't mind the newly tooled kits high cost, because quality is usually better. But the reissued ESCI garbage for $35 US?
And you have to understand from the distribution/importers side, they expect cost fluctuations and they cover themselves, but when/if you see a global slowdown, we'll be able be able to grab all sorts of kits on clearance. For instance Squadron.com had a Fujimi 917K on sale for $10.99 US a couple of days ago.
I don't mind the newly tooled kits high cost, because quality is usually better. But the reissued ESCI garbage for $35 US?
And you have to understand from the distribution/importers side, they expect cost fluctuations and they cover themselves, but when/if you see a global slowdown, we'll be able be able to grab all sorts of kits on clearance. For instance Squadron.com had a Fujimi 917K on sale for $10.99 US a couple of days ago.
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