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Why not these things


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From my experience, of course I have a fairly good idea--but I will decline to say even that, as I don't want to even hint at revealing confidential information (if a model company wants to add such information--that's their call, not mine to make!)

Art

I am just going to take a stab in the dark, and I could be wrong , but I am sure that the time between when you were as they say"in the business" and to current day, that things have changes, and the big one, the cost of doing business has gone up, so the numbers you "may" know, I wonder if they are still even accurate today?. Unless you have current percentage's ?

Edited by martinfan5
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I'm not asking for specific numbers, just roughly how much tire licensing is as a part of overall licensing fees for a given kit. 5% of the total? 10%?

AND..,.,.,. ,would the additional cost potentially result in better/additional kits sales. How many times have you bought a kit for the rims, or the grill, or other parts. AND how many times have you not bought a kit just because it lacked something you deemed essential. SO, if the cost were 5% more, would it result in 5% better sales. I know this is being asked as a mute point, because I am sure someone in the decision making chain has already considered this, because companies like Mobius are certainly listening to groups like this forum, and even they are not yet doing them.

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AND..,.,.,. ,would the additional cost potentially result in better/additional kits sales. How many times have you bought a kit for the rims, or the grill, or other parts. AND how many times have you not bought a kit just because it lacked something you deemed essential. SO, if the cost were 5% more, would it result in 5% better sales. I know this is being asked as a mute point, because I am sure someone in the decision making chain has already considered this, because companies like Mobius are certainly listening to groups like this forum, and even they are not yet doing them.

Before anything, let's consider how much of the retail price the manufacturer gets. Now, it's been my understanding that a 40% markup is standard for retailers, because they like to eat too. If this is so, and assuming a similar markup at the wholesale level, that would mean about 50% of the price at the store makes it to the manufacturer. It was mentioned earlier that someone like Chrysler wanted 8% of the retail price, so we're already down to 42%, and that's not covering whatever costs are involved in making that kit in the first place. It wouldn't take too many royalty deals like that to wipe out whatever profit is left.

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but it was a slight toward Ben. Being a member on this forum that has sections for almost every kind of model with wheels he can answer a question and voice his opinion in this general section just as much as car guys ,nascar guys, or slot car guys.Maybe in "indian land" where you come from this section is only for car guys,

Why not follow the rules and state full name and location while riding on your high horse?

Why, pardon me, Kevin. Why not READ? My full name is and has always been on each and every one of my posts, along with my (given) club nickname (which stems from my last name). Point of fact : "Indian Land" is an un-incorporated area of South Carolina (just south of Charlotte, NC) in which I reside. The name stems from the fact that at one time, there were aboriginal Americans living in the area. I am not making this up. You can Google it, if you care to do some research. By the way, Ontario is a rather large province- where in Ontario, Canada do you reside?

Ben actually mentioned first that this is a car forum and differentiated between it and the truck forums to which he also belongs. I didn't. Perhaps you should re-read ALL of the posts from ALL who did post concerning the types of models to which we were referring before you claim that I was on any type of horse. Now I smell a dead horse, so let's leave this one go.

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When Andy Granitelli started offering STP decals at Indianapolis Motor Speedway in the early 1960's--he SOLD them, regardless of whether or not other race car sponsors or secondary sponsors gave their logo's away or not. I was there, saw and experienced that.

"Free Advertising" does seem to have it's limits.

Art

Wow- I remember getting free STP decals at the local Shell station when I was a kid. I also wrote to the various speed equipment manufacturers and did get a lot of free decals that way. And just a few months ago, Vic Edelbrock was at Charlotte Motor Speedway (for the Autofair), celebrating his company's 75th anniversary by autographing hats and catalogs at no cost for the attendees(read:potential customers) and giving away commemorative pins.

Business is a weird animal.

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I am just going to take a stab in the dark, and I could be wrong , but I am sure that the time between when you were as they say"in the business" and to current day, that things have changes, and the big one, the cost of doing business has gone up, so the numbers you "may" know, I wonder if they are still even accurate today?. Unless you have current percentage's ?

It's not been all that many years since I had to deal with licensing issues and royalty costs--within the last ten years. While numbers may have changed somewhat, I suspect that percentages haven't moved very much themselves.

I still vividly remember, as product development for Johnny Lightning diecast cars, having to figure in not only the licensing costs, but also all the other tooling and production costs associated with that product line with every diecast model we created from scratch, as well as new versions of existing castings. It was there that I had to learn very quickly how easy it could be for a product to be "nickel and dimed" like crazy with licensing for not only the miniature car subject itself, but if any company's logos, even sponsorship decals on a race car where to be tampo-printed on it, could add up pretty quickly.

Art

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  • 6 years later...
On 8/27/2013 at 9:21 AM, raildogg said:

With all the "stuff" being done today, why not these things!

3- when are we going to get models of construction and farm tractors?

Richard hasn't been logged into the forum for a few years now, but hopefully he's seen the numerous new tractor kits Revell and Heller have released over the last few years or so. I am not going to re-hash the debate this topic turned into, but I will admit I was very surprised to see all-new tractor kits, especially the number of unique kits which were actually released.

Round2 has also reissued the Cat bulldozer, the IH Payhauler is due to be reissued soon, and I would expect if they have the John Deere backhoe molds, that kit will be reissued within the next year or two as well. Granted, they are not all-new models of construction equipment, but I would argue it's better than nothing.

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