Modelhaus going, going Gone !!!!!!

[WoodyRDC]

Whats going to happen to all the promo rebuilding when they go out ??  I am not sure weather to by any more if you can't get parts any longer. 

[High octane]

ALL good things must come to an end.

[Greg Wann]

I talked to Don the other day because I was curious.  It is such a niche market a price for the business might be hard to figure out.  He did tell me they would sell the five acres of land with the house and barn and whatever was business related.  so, if anyone on this board is relocating to his area you might consider that.  Carol does not like how the home is situated on the property.  It must be a girl thing.  He will even throw in a nice John Deere lawn mower.  He has had some offers but he has no intention of training anyone.  It will just get packed up and stored if the right person does not come along.  Then he wants to do woodworking for fun and carol is going to rest.  He is not just going to sell it to anybody.  If I had lots of money I might be interested.  They have kept the business as a 1:25 scale automotive business but I would break into other scales and subjects.  I certainly would not be able to do it alone though.  I would want someone doing 3D printing.  Someone making decals and maybe awards too.  Someone creating photo etch would be nice as well.  I think a business could be started that could keep a few smart and talented people busy making a decent income.

[blunc]

sounds like an opportunity for Detail Master

[High octane]

sounds like an opportunity for Detail Master

Sounds like "a lot of work." It would be a big undertaking and would probably take awhile to get  the business going "full steam," especially if Don & Carol aren't willing to train anyone either.

[peteski]

Sounds like "a lot of work." It would be a big undertaking and would probably take awhile to get  the business going "full steam," especially if Don & Carol aren't willing to train anyone either.

Even if they were willing to train someone, that doesn't guarantee that the product quality will remain the same.  It takes someone who is very fastidious, dedicated and also has talent for this type of work. Not everybody is cut out for this type of work.  Even if someone is an experienced resin-caster, their definition of quality might be much lower than Don's. They might for example cut corners and the products will be inferior quality.  It seems that nowadays more and more people don't have the dedication or drive to constantly do high-quality work.

[Lownslow]

I have the financial means and casting experience but i just dont see the value in it.

[Greg Wann]

I have the financial means and casting experience but i just dont see the value in it.

Frank, you may not see the value in it but I do.  I know that Don and Carol are quite busy with the business and upon their announcing the closing in the near future it has just boggled their minds.  There is a guy named Bob Zetterman who brings a big load of Modelhaus parts and sets up at a table at our Desert Scale Classic model car show and contest and does quite well.  I have seen people set and end up with two pages of parts they want to buy while he is there and Bob will have parts for most everyones wish list.

[GLMFAA1]

I had the pleasure to speak to both Don and Carol a little at the Toledo Toy Show last weekend and I want to express my thanks and appreciation to both and to those who have orders placed they will be filled so patience is appreciated, She expressed her concern regarding the orders but assured that they will be completed. I inquired if there were interested parties and Don said he had a few. Both seemed more relaxed then when they were selling their wares at the show, They had just his mercury wagon and kits and that was it. Truly an asset to our hobby and once again greatly appreciated.

greg

 

[rickcaps55]

 I for one like all the other modelers on here will miss Modelhaus very much I never passed up a old glue boom or a old promo knowing that I could get what ever I needed to rebuild or restore that old boom or just fix something I had in stock and I want to thank both Don and Carol for the many years of very high quality work and parts they supplied to all us model nut's. That being said I also want to say I'm 64 I have been building models from the age of 10 so that's 54 years and I will still keep building till I can't or just don't want to any more I know there is a lot of younger guys on here that are not happy to see them go but like my self I retired at 60 after 40 years in the work world you just have had it all the fun maybe gone and you just don't care any more and every one need's that time to do things you have dreamed of or want to do it's your time now life is short every one deserves this. Once again Good lock God bless and enjoy your retirement Don and Carol Thanks You.!!!!

[Lownslow]

Frank, you may not see the value in it but I do.  I know that Don and Carol are quite busy with the business and upon their announcing the closing in the near future it has just boggled their minds.  There is a guy named Bob Zetterman who brings a big load of Modelhaus parts and sets up at a table at our Desert Scale Classic model car show and contest and does quite well.  I have seen people set and end up with two pages of parts they want to buy while he is there and Bob will have parts for most everyones wish list.

For the old car type builders sure but thats not the direction im headed casting wise. They have a great catalog but nothing fits the demographic i aim for.

[gtx6970]

I've been working on a list of parts and pieces I will need in the future for the past few weeks .

Once they re-open ( think / hope they will )

I will hit submit and wait. These are all older annuals . So I am in NO hurry to get them,,,but I want to get the parts while I can .

[Young iron]

I order from time to time. And everytime I have to slown down, or order $800 of different stuff. My computer is full of building-lists featuring thair T-426 tires, Spyder, Honeycomb or Cragar rims.

I didn't make a $1500 order, because I definitely believe someone will go on this business. And will need my money.

[Art Anderson]

Even if they were willing to train someone, that doesn't guarantee that the product quality will remain the same.  It takes someone who is very fastidious, dedicated and also has talent for this type of work. Not everybody is cut out for this type of work.  Even if someone is an experienced resin-caster, their definition of quality might be much lower than Don's. They might for example cut corners and the products will be inferior quality.  It seems that nowadays more and more people don't have the dedication or drive to constantly do high-quality work.

Absolutely!  Also, unless one has been seriously in the resin casting business--it's far more labor-intensive than most people can imagine.

Art

[om617]

I hope the owners dont have to read all these threads regarding they`re business. Assumptions rarely does anyone any favour. 

Pretty sure they will do a statement when they are going to close. 

 

[jeffb]

i can give art an amen on that! resin casting isnt for the feint of heart...its a full time job..then some....

[Tom Geiger]

Within Modelhaus, there are actually two distinct business divisions.  First is the kit business, which produces unique kit conversions, and cleaned up repops of vintage kits. While this will be sorely missed,  but will be like other companies that have come and gone.  Some of the master creators may have other casters pick up some of the items. Time will tell.

 Second is the parts business, which is pretty much the heart of the old kit / promo restoration part of our hobby.  This is the part of the business that we all depend on and will be a big gap in the hobby.                

Some of you will remember back 10-15 years ago, we were seriously worried about the future of model kit production.   Revell & Monogram were for sale, and we were concerned that the then current owners would scrap all the AMT / MPC tooling for the metal value.  Back then, I wrote an article for our club publication stating that as the market changes, IF there indeed is a viable business opportunity, new players would emerge who would know how operate within the parameters that existed then.

Sure enough, Tom Lowe jumped in as a white knight (Twice!) and Hobbico did the same for Revell / Monogram.  Suddenly we had the correct folks who understood what it would take to work to the requirements of the 21^st century market!  And it got better.  Moebius came out of nowhere and jumped right into the deep end of the quality pool.   Suddenly we are in the third renaissance of the hobby!

I will make the prediction that history will repeat itself.  Modelhaus has pretty much had the monopoly in the kit and promo parts business. They did this so well that their dominance discouraged any competitors.  Now this may be changing.  Let’s assume that Don and Carol retire and destroy the molds. It’s not rocket science to create a new business that duplicates old kit parts. 

The fact that they are retiring may open up this market to new entrepreneurs.  So the world is a wide open place. If indeed this is a viable business, someone will jump in to fill this need. There may be several players who attempt this business. It will be a slow start up as someone attempts to create molds to have as wide a product line as Modelhaus, but that’s possible.  

The big question would be if a new player could duplicate the business model profitably. There is the magic formula of right array of product, right quality and right level of service. The amount of work that it takes to achieve this is the issue at hand.  That reputation is what makes Modelhaus work. Any new players would have to achieve and sustain that to prove themselves to the hobby.       

[gtx6970]

Within Modelhaus, there are actually two distinct business divisions.  First is the kit business, which produces unique kit conversions, and cleaned up repops of vintage kits. While this will be sorely missed,  but will be like other companies that have come and gone.  Some of the master creators may have other casters pick up some of the items. Time will tell.

 

 

 Second is the parts business, which is pretty much the heart of the old kit / promo restoration part of our hobby.  This is the part of the business that we all depend on and will be a big gap in the hobby.                

 

 

Some of you will remember back 10-15 years ago, we were seriously worried about the future of model kit production.   Revell & Monogram were for sale, and we were concerned that the then current owners would scrap all the AMT / MPC tooling for the metal value.  Back then, I wrote an article for our club publication stating that as the market changes, IF there indeed is a viable business opportunity, new players would emerge who would know how operate within the parameters that existed then.

 

 

Sure enough, Tom Lowe jumped in as a white knight (Twice!) and Hobbico did the same for Revell / Monogram.  Suddenly we had the correct folks who understood what it would take to work to the requirements of the 21^st century market!  And it got better.  Moebius came out of nowhere and jumped right into the deep end of the quality pool.   Suddenly we are in the third renaissance of the hobby!

 

 

I will make the prediction that history will repeat itself.  Modelhaus has pretty much had the monopoly in the kit and promo parts business. They did this so well that their dominance discouraged any competitors.  Now this may be changing.  Let’s assume that Don and Carol retire and destroy the molds. It’s not rocket science to create a new business that duplicates old kit parts. 

 

 

The fact that they are retiring may open up this market to new entrepreneurs.  So the world is a wide open place. If indeed this is a viable business, someone will jump in to fill this need. There may be several players who attempt this business. It will be a slow start up as someone attempts to create molds to have as wide a product line as Modelhaus, but that’s possible.  

 

 

The big question would be if a new player could duplicate the business model profitably. There is the magic formula of right array of product, right quality and right level of service. The amount of work that it takes to achieve this is the issue at hand.  That reputation is what makes Modelhaus work. Any new players would have to achieve and sustain that to prove themselves to the hobby.       

 

 

Tom,

Very well said.

But IMO . I think IF someone buys out the rights , tooling and molds it will have to be an  established resin caster.

Not only are they going to have the costs of materials and supplies,,,they will also have the overhead of buying out said molds . So trying to  keep there head above water AND start from scratch to establish a market presence will make for a tough road to travel for someone new in the business .

I certainly hope someone picks up the torch and moves forward with it , but I'm not holding my breath that happens either.

[Bob Ellis]

http://www.buzzfile.com/business/Model-Haus-217-864-4402

What I found out about the business

[Danno]

The best way to make a small fortune in the resin-casting business in the model car hobby is to start out with a large fortune.     

[Howard Cohen]

So, let us say you have the desire to buy Modelhaus There are many variables starting with: cost of buying company including molds, masters, inventory, customer list plus goodwill = $LOTS 

Now that you bought it, add in the hours needed to learn the business if you have never done such a large volume like they do  You may be a good resin caster now but with the number of pieces they have (must be hundreds of molds and masters) you need lots of space, you have to be able to control your inventory, control production (you can't make 1 piece at a time), shipping, billing, attending shows, storage of raw resin materials (does your city allow that), packaging, etc., etc., etc.

In the long run, will you make any money? After you buy the company, will you raise the prices? If you do, will you scare off your customers? If you leave the prices, will you get back any return on your investment and be able to pay yourself? Will you be able to handle the too many 12 hours days? Hmmmmmmmmmm??????????

Not so easy, eh  

 

[1930fordpickup]

With the amount of  parts  people are buying now anyone who does take over will not be behind the eight ball for a year or so. 

[dimaxion]

One thing overlooked here about PARTS . Other Casters have generally abandoned this segment . Some will make parts if you've asked to sell you individual parts . Don and Carol made this portion an Art Form . I've asked many times if I am better off to combine my Kits / Parts orders . The consistent answer was "no difference" . Thanx ..

[Bob Ellis]

The key is your cost of living. Might not be able to survive in a high cost area.

[Rob Hall]

Got the '62 Chrysler Newport 4dr sedan from the Modelhaus in the mail today.  One more order pending, the '61 Dodge Seneca 2dr sedan.