New Models and Withdrawing from Production

[andrew_garton]

I've got to say I'm Very Disappointed with Hornby for Withdrawing from Production so many New Models It seems to me that Hornby are Favouring Steam at the Expense of New Diesel Models I was Really looking forwards to all the New Releases But Not Now

[walkingthedog]

I think you'll find the steam/diesel cancellations are about equal. I suppose it's a choice of cancel some products or go to the wall. No contest in my view. 

[Tony57]

 Hi

Is it Hornby's fault or is it the factory where production takes place fault that many items have been deleted from this years production list? Having seen the lists for Hornby Trains and scalextric cars that are not being made this year I would look to the factorys where the products are being made being the cause of the problem not Hornby itself.

I would however suggest that Hornby should look at more realistic program by produceing less new items each year but make sure what they promise is delivered on time.

[walkingthedog]

Your right about a realistic program Tony but can you imagine the moans and groans if they only announced half a dozen new locos.  😆

[poliss]

Nothing to do with the factory. The statement said, 'In light of recent trading results'.

It's a cost cutting measure because people weren't buying stuff in January. I peeked at the Kato products. They make many more products than Hornby do. A lot of the products are scenic items though. Cheaper to buy and therefore more sold I should think.

[Tony57]

 Hi maybe engine shed to put out a statement as to what is going on. Following the announment in the Modelling press  that the Air smoothed Mechant Navys would be out this year I pre ordered one. I have be informed that it will not be available untill next year, is this due to Trading or Production problems or both?

To my way of thinking a realistic program is once every detail is finalised and production started the press are informed that the item is comeing,  the item is in the shops within 3 months of the press statement unless a futher anouncment is made to advise on a production delay and a new release date is given.

I like the asperation lists manufacturers have, together with modeller surveys on what they would like to be produced, but if items are not delivered within time scales what happens, modellers drift away to other manufactures or gauges or get dishearten and drift totally away from model railways. 

[poliss]

Read the Investor Relations section of the website esp. Update on Trading and Transformation Plan and DIRECTORATE CHANGE. Hornby have been making big losses and it looks like models are either being cancelled or held over to a later time in order to save money.

The production difficulties are supposed to have been sorted out, so I don't think it's that.

Possibly Hornby have been taking far too much notice of the polls you see in the magazines and on websites. Only a miniscule fraction of modellers actually take part in them.

[Forum-1211528]

I had many pre orders at HORNBY for models not yet released i get emails this week saying they have been cancelled since then many more models have gone the same way so why did HORNBY announce a product then customers pre order it now they get cancelled never to be made at all this seems strange?

[Chrissaf]

........this seems strange?

.

Colin,

If you check out the other posts relating to Hornby's current financial troubles, then the decision to cancel previously planned projects to save money will not seem strange at all.

[Howbi]

Perhaps this press report will make things clearer...........

Model maker Hornby has been given a lifeline from its bank after it waived conditions on its loan for this month.

The Sandwich-based toy firm revealed in February it was at risk of breaking its lending agreement, with expected trading losses set to reach up to £6 million this financial year.

However Barclays agreed to waive convenant tests for March after “constructive dialogue” with management at the troubled business.

Hornby said trading is in line with expectations, with second half sales for the year so far down 2%, although its UK business is up 4%.

Executive chairman Roger Canham said: “The group welcomes the continued support from its lender, Barclays.

“Recent trading has been encouraging and the board is pleased with the positive like-for-like growth that our core UK business is delivering.

“We will update shareholders on the continued progress that we are making when we announce our results for the year in June.”

The company, which has its visitor centre in Margate, suffered a share price collapse after it wiped £3 million of profit forecasts in February.

It also scrapped another £1 million after a full stock take at its warehouse in Canterbury and review of its European balance sheet.

Hornby's discussions with Barclays would have determined their financial strategy for the next 6 months.. HB

 

[Alessio]

I'm not surprised sales are poor when you look at the prices of some items. In some cases it's justified but how a Gresley passenger brake which has no windows and no interior can be valued at nearly £50 is beyond me.

Incidentally where is this news? I can't find it anywhere.

[poliss]

January was when sales were down. Sales were back up in February.

[Forum-1211528]

 Hornby must be careful after buying up the Continental ranges Lima, jouef, Rivarossi, Arnold N, Electrotren and going head long into selling direct it has big debts that must be settled as LIMA went bust before it and they must be warned as LINES BROTHERS purchased MECHANO in 1966 and within 12 months they were BANKRUPT as they went too far it seems HORNBY ARE MAKING THE SAME FATAL MISTAKES! 

[poliss]

Nothing to do with the continental ranges at all. It was in the UK where sales fell. The box shifters are where Hornby makes the most money. I don't see what direct selling has to do with anything.

The mistake Hornby made was obvious at the time they made it. They have rectified that particular problem.

[JeremiahBunyan]

I've got to say I'm Very Disappointed with Hornby for Withdrawing from Production so many New Models It seems to me that Hornby are Favouring Steam at the Expense of New Diesel Models I was Really looking forwards to all the New Releases But Not Now

 

Why am I not surprised? All these years I've been behind Hornby to update atleast one or two AC electrics. But no, they said that electrics don't sell. I took their word for it.

 

But odly enough one of their designers told me that Hornby don't need to update their AC electrics because they are perfectly acceptable in today's world for that over-priced price and they sell well and hence they won't update them.

 

Well then why are all the AC electrics removed from that list?? Including a RailRoad spec Class 87 in the most popular BR Blue.

 

Clearly Hornby aren't aware of what exactly they follow...

 

Seems like I'll have to wait for a Abellio Greater Anglia Class 90 for an even longer time....

 

PS: Why so many capital letters in almost every second word?

[JeremiahBunyan]

I'm not surprised sales are poor when you look at the prices of some items. In some cases it's justified but how a Gresley passenger brake which has no windows and no interior can be valued at nearly £50 is beyond me.

Incidentally where is this news? I can't find it anywhere.

The teak finish is a major contributor to the price....

[walkingthedog]

Some of the latest Bachmann small wagons are £25 so no wonder a coach is £50. 

[Tony57]

I have just looked on the shop pages, if Hornby are going to be a retail seller as well as manufacture then they need to keep stock in  and available to sell. Anyone new looking to start in this hobby looking at loads of nice pictures only to see out of stock or sold out or on pre order with availablity ? on too many items, not very attractive or good for cash flow.

[The son of Triangman]

Sadly the prices for today's models are to be expected, all that fragile super detail costs money to make, new moulds, high precision machining, etc etc.

The range is long overdue for a cull, it's grown too big.

[morairamike]

Problem here is numbers. If they produced just 10 models of each item then they would be expensive due to limited production. The stock would they hope sell out. Result unhappy customers due to high cost and low numbers. So they produce 1000 but then the price comes down but due to the shere size of the range there are products left at the end of the year. Result, loss to company coffers. 

As a production company you have to weigh up costs all the time, so to keep profits coming in you have to draw a line in the sand. To do that I'd expect a bean counter to do an analysis of the market. If you produce 1000 units but only sell 10 then it's unecconomic to keep that item in production. So it's culled and the bean counter is happy but the punters aren't.  The other thing is that these items do not wear out so once you have bought a Flying Scotsman you'll unlikly to ever buy another. So unless we as customers keep buying then they will keep  culling. But I can afford to spend that sort of money each week result some of us are disappointed. 

[96RAF]

Probably why there are so many Mallard and FS variants in the range. Popular but...

[The son of Triangman]

Some good points from Mike. However no one is proposing making just 10 of one model. The range of models in the catalogue is too big and there are too many new models coming out each year. The average cost of moulds for a new model including the r&d and setting up for production is 100k+. 

Tri-ang and indeed the 1970's-80's Hornby era had it right, enough models in the catalogue to keep interest with just the right number of new models and liveries.

[The son of Triangman]

Some good points from Mike. However no one is proposing making just 10 of one model. The range of models in the catalogue is too big and there are too many new models coming out each year. The average cost of moulds for a new model including the r&d and setting up for production is 100k+. 

Tri-ang and indeed the 1970's-80's Hornby era had it right, enough models in the catalogue to keep interest with just the right number of new models and liveries.

[The son of Triangman]

Sorry the system is doing it's multiple post thing again

[The son of Triangman]

As for poor selling models, as a business if I were Hornby I would simply keep the model in the catalogue until stocks were used up and also use the moulds until I got my investment back plus a bit then mothball the moulds for the model.