Rising price of our hobby

[Dave Ambrose]

I think the big difference for new kits is that you're trying to pay for the molds on a much smaller kit volume. Back in the '60's you could sell hundreds of thousands, or even millions of kits. Now days, it's 10s of thousands. That's probably most of the price difference.

Now that I have the '30 coupe kit in hand, I can see that Revell is taking a more modular approach to their molds and kits. That's going to help a lot with pricing.

Royalties also play a part, but that's usually on a per unit basis.

 

[StevenGuthmiller]

A 1/4 oz bottle of Testor PLA enamel was 10c. What's it now, over $2?

An increase of 20 times.

That would make that 1968 house cost $180,000.00.

I paid much more than that for the house I'm in now in 2001.

So I guess we should consider ourselves lucky.

That $2.00 kit should cost us $40.00 today.

 

Steve

Edited August 6, 2016 by StevenGuthmiller

[charlie8575]

A 1/4 oz bottle of Testor PLA enamel was 10c. What's it now, over $2?

At full list, it's about $2.10.

We're selling at $1.99, unless you're a club member or a courtesy discount, in which case, it's 10-20% off.

Charlie Larkin

[unclescott58]

But AMT cars weren't the only models in town. We're about the same age--I might have just a couple years on you--and the hobby shops and other outlets I mentioned earlier were also full of 50 cent model airplanes by Revell, Airfix, and Hawk (mostly 1/72 scale WWII fighters and things of that nature), $1 would buy a nice 1/48 scale fighter or a "box scale" jet.

Even in cars, not all were $2. There was a good deal of 1/32 stuff available for $1 or less--Aurora, Pyro, Monogram, Revell, even AMT.

I ran $2 though on online inflation calculator today. Two 1966 dollars equals $14.76 in 2015 dollars--call it an even $15 in mid-2016. So a model car kit SHOULD cost about $15. So many of us wonder why the suggested retail is twice that, even being made in China, where supposedly everything is cheaper.

Worse yet, the vast majority of today's "new" model cars are coming from tooling whose costs were fully amortized during the Nixon administration (if not before). Yeah, I know the profits from those old molds helps finance the new tools. Or that's what we like to think....

AMT are not the only models in town? Blasphemy Snake....... Oh, your right. There is MPC. But they were still $2.00 at the time.

And to say we're about the same age! How dare you...... Okay. Maybe your right about that too.

Others here have talked about the amount of the allowances they got back in the day. In the late 60's I was given $2.00 per week for allowance. And one of those dollars automatically went towards savings for college. Which reminds me. I wonder were that money went, when I did go to college? With the other buck, you were suppose to save it for something special. No running down to hobby store for me. My folks were both cheap and controlling. Thankfully they started letting earn my own money in the early 70's. As noted, I got $2.00 per lawn. In the winter, I made money blowing out driveways. Again, $2.00 per driveway. Not as much demand for that for some reason. In 1971 or '72 a local gas station hired me to mow their lawn. Now, I was making the big bucks. It took me a hour and half to mow and trim their lawn. And for that, I got paid $10.00! Then I discovered drinking, drugs, and stealing...... But, that is another story for another time.

 

[unclescott58]

I think the big difference for new kits is that you're trying to pay for the molds on a much smaller kit volume. Back in the '60's you could sell hundreds of thousands, or even millions of kits. Now days, it's 10s of thousands. That's probably most of the price difference.

Now that I have the '30 coupe kit in hand, I can see that Revell is taking a more modular approach to their molds and kits. That's going to help a lot with pricing.

Royalties also play a part, but that's usually on a per unit basis.

 

Dave I think you've 100% right in analysts of the situation.

 

[unclescott58]

Cost of inflation

Lower sales volumes

Higher price for oil impacts cost for styrene and delivery cost when kits were $2 gas was the 5 cents a gallon

Cost of development for new kits has to be amortized over a smaller volume

For round  2 there costs are refurbishing the tooling for new kits and new tires for most of the new kits along with getting a return on the investment on their purchasing all of the tooling

All of these things contribute to higher prices for model kits

5 cents a gallon for gas? In the 1960's a gallon of gas around here was about .25 cents. In the summer of 1973, just before the first fuel crisis, a gallon of self serve regular (leaded) gas was selling for .32.9 cents at the gas station I was mowing the lawn for. Photos I've seen of gasoline prices in 1920's, a gallon was going for about .12 cents. I don't think gasoline was ever .05 cents a gallon when AMT and like model kits were going $2.00.

By the way, my favorite gasoline story from the early 70's is when a new self service gas station opened up in our area. For opening, they were offering a gallon of regular gas for .25.9. A pretty good price. But, the kicker was, if you filled your tank, they also gave you a free bunch of bananas! To this day, I don't understand why they choose for their giveaway bananas? I've always thought that to be strange.

 

[MrObsessive]

Ha! Seems like a lot of us got the same amount for an "allowance"! I got around $2.00 a week in the early '70's when I was in junior high. Once I hit high school, that came to a screeching halt as my Dad said I could get a job and make the money myself. 

I was a skinflint though with my cash as I was a saver. I still had a dislike of models back then------that wouldn't change till I was a senior in high school. My Dad would sometimes be asking ME for money as he spent all of his before he got paid again, and if his then girlfriend was in town and he wanted to take her out for drinks at the bar, he was broke!

in '78 when I started building models, IIRC the kits were somewhere around $2.00-$2.50 per kit. Just starting out, I didn't buy paint and other such things. I was glue 'em and put 'em together guy for quite a while! I don't think I started painting anything till maybe the early '80's?

5 cents a gallon for gas? In the 1960's a gallon of gas around here was about .25 cents. In the summer of 1973, just before the first fuel crisis, a gallon of self serve regular (leaded) gas was selling for .32.9 cents at the gas station I was mowing the lawn for.

In 1969 my Mom bought her second Javelin.........a 390 car with an automatic. I distinctly remember the service guy coming up to the car one time, and my Mom telling him to fill the car with High Test (Sunoco 260?). Gas prices for that stuff then was 30-33¢ a gallon! I can remember my Mom was short on cash one time, and she told the service attendant to fill the car with half of regular, and half of high test, and let 'em fight it out in the gas tank!  The car did run fine that way though!

I do believe regular gas in '69 was around 25¢ per gallon.

[unclescott58]

By the way. Notice what is really cheap today, after inflation is taken into account? Gasoline! In real terms, hours worked, I think gasoline is as affordable as it's ever been in my life time.

 

[plastic-mechanic]

At full list, it's about $2.10.

We're selling at $1.99, unless you're a club member or a courtesy discount, in which case, it's 10-20% off.

Charlie Larkin

based on this, and your previous breakdown of how discounts are handled, i would never buy anything from a store which obviously prejudices someone who walks in off the street over a regular customer. i'm not saying it's wrong, or a bad business practice, but just one i won't participate.

this is the type of action which makes me enjoy the internet shopping experience. i can live without the "warm & fuzzy" of brick 'n mortar and all those deep friendships based upon my spending habits.

anyone, in any business, is your friend as long as you are giving them $$$.

[Harry P.]

I think Dave A. got closest to the bottom line real reason for the "more than inflation" rise in kit prices: dramatically reduced volume due to a dramatically reduced customer base.

Think about it. Back in the '60s and '70s, building plastic model cars was a huge hobby that many, many more people participated in than they do today. A popular Tom Daniel kit might sell a million units, whereas today, a kit is considered a big hit if it sells a couple of thousand units.

All the same costs existed back in the '60s for the kit manufacturers that exist today, and adjusted for inflation I'd guess they still are about the same size slice of the pie: the cost of tooling, licensing, manufacturing, packaging, and distribution. Nothing much has really changed as far as the physical process of manufacturing a model kit.

But when you're selling a few hundred thousand (or even a million+) of a particular kit back in the '60s vs. a few thousand today, it's obvious that the per kit selling price has to be higher today (in proportion to the overall numbers) than back in the "good old days."

When your manufacturing, production, and distribution costs are still pretty much the same % of the total cost per manufactured kit (factoring in inflation), but you're selling just a tiny fraction of the number of kits that were selling in the '60s, the per kit selling price has to be much higher if you're going to be able to make enough money to stay in the kit manufacturing business. That's the real reason kit prices have outpaced inflation: a far smaller customer base.

[Luc Janssens]

In a way it's good news, because it will mean that for that higher price, customers will expect a higher quality, which means more room for smaller operations like Belkits, which should worry a manufacturer like Round-2, since they ride on nostalgia, not only in subject matter but technology as well..and dunno how much longer today's and future discriminating modelers will accept that kind or type of automotive model kits.

 

Edited August 6, 2016 by Luc Janssens

[SfanGoch]

Higher price doesn't necessarily mean that higher quality will be part of the equation. There are a lot of expensive dogs on the shelves.

[10thumbs]

This past January I started my 1st truck project. The kit was $25, till it got here, packaging, post and Customs, more like $40.  I thought way too much.  Now, mid August, the model will be finished this week.  8 months hobby for $40.  OK, add all of the material needed to bash the kit makes it much more, but still, kind of a cheap way to enjoy a hobby at home.

 

 

[Luc Janssens]

Higher price doesn't necessarily mean that higher quality will be part of the equation. There are a lot of expensive dogs on the shelves.

In this day and age of instant information, I think such dogs could put today's manufacturer in serious financial trouble...

[Dave Van]

There are ALWAYS more expensive hobbies!!!  Nearing completion on  my 1/1.....talk about costly!!!!

[Luc Janssens]

There are ALWAYS more expensive hobbies!!!  Nearing completion on  my 1/1.....talk about costly!!!!

That's why I collect model kits, Dave.

But if I had the cash, a '66 Bonneville hardtop, a '67 Mustang fastback, a '67 GTO hardtop and a '69 Charger would be in my garage...

It would be easier If I would be living in the USA, so if you know of a company who's willing to hire a foreign heating tech and know where they need a highly trained nurse (my wife) gimme a call....

 

 

[SfanGoch]

Start packing:

Arista Air Conditioning Corporation

depending on your training, you might qualify as a journeyman (full scale tech) making $40/hr. And, it's a union job (Metal Trades Division of Pipefitters Local 638B). If you're serious, check it out.

[Dave Van]

That's why I collect model kits, Dave.

But if I had the cash, a '66 Bonneville hardtop, a '67 Mustang fastback, a '67 GTO hardtop and a '69 Charger would be in my garage...

It would be easier If I would be living in the USA, so if you know of a company who's willing to hire a foreign heating tech and know where they need a highly trained nurse (my wife) gimme a call....

 

 

You could live here if you wanted........

We are not as hate filled or ugly as we may be portrayed in places. I had a good number of Brits working for me back at the bank. They loved it and stayed. It helped they were cars guys fr the most part.

ANY good tech person can find a job stateside.....as long as you are average and want to work.....very hard in many areas to get folks that have the knowledge and want to work. As for nurses....I have 4 - 5 head hunters calling everyday to my house because my wife is a RN/BSN with two specialties .  Another hard job that many do not want to do today. I am sure the two of you could find work easy....but I am sure it is very different culture wise.....

sorry for derailing the topic

[10thumbs]

Oh my.  The hills of West Virginia don't have the greatest rep overseas.  Dave, Luc is Belgian, not British.  Just a FYI.  But then maybe you were using the Brits as an example. 

Still, for some reason I could not recommend your area for Luc.  Sorry if I wreck this thread.

 

 

[Luc Janssens]

Start packing:

Arista Air Conditioning Corporation

depending on your training, you might qualify as a journeyman (full scale tech) making $40/hr. And, it's a union job (Metal Trades Division of Pipefitters Local 638B). If you're serious, check it out.

Filled in the online form, will see if anything will come from it, cuz my wife and me are fed up of the way they govern Belgium.

 

[SfanGoch]

Cool. Good luck. There are some great hospitals and medical centers around here like Mt.Sinai, Memorial Sloan-Kettering. Montefiore Medical Center, NYU Langone, New York-Presbyterian University Hospital and Hackensack University Medical Center, to name a few.

[Harry P.]

Filled in the online form, will see if anything will come from it, cuz my wife and me are fed up of the way they govern Belgium.

You think the way they govern here is any better???

[SfanGoch]

You think the way they govern here is any better???

Compared to there (Europe in general), we really have it good. 

[Harry P.]

Compared to there (Europe in general), we really have it good. 

If we could talk politics here I would gladly debate you on that topic.

But without getting into politics specifically, I would say that "on paper" we do have a very good system of government... maybe the best in the world. On paper.

Reality is quite a different matter.

[cobraman]

Although I wish models were cheaper I can't say I mind spending what they cost. If you built one a week it would get expensive with the glue and paint ect. But if you build one say a month it doesn't seem so bad. What else can you spend 25.00 or so bucks on an get that amount of time and satisfaction ? Not to mention when your done you have something to show for your money. Just one guys opinion.