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Prices rising 1st September?


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This headline is circulating some of the German forums. It should be in a mail sent out by Hornby to dealers.

Here's a link to German forum "Drehscheibe Online". The rumour, unfortunately, does not come with a source. Someone does mention, however, that some French dealers have put it on their website. They do not mention the dealers, so I could not check up on it.

https://www.drehscheibe-online.de/foren/read.php?010,10852953,10852953#msg-10852953

20% sounds like a massive price increase. Does anybody know if it has some truth to it?

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Is this is an alarmist post, unsubstantiated by fact?

I say it is a 100% price increase, do you believe me?  It must be true, I said it.  Now it can be repeated.

Until there is substantiation, this 20% rumor remains as it is:  A rumor.

Perhaps it is true. Perhaps it is not.  Perhaps we should panic, and run like little girls in circles, screaming our little heads off.

Bee

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If they do they might as well give up now. They are currently more expensive that their competitors and to be quite honest I don't think the market would be there anymore. Obviously some die hard Hornby fans will pay it. We will just have to wait and see. I could see why and if you are losing money it used to be a way to increase revenue, plus I assume their fixed costs are rising. Perhaps it is on the smoke generated ones, they do seem underpriced given the technology involved. I definitely wouldn't think a class 87 or 8F would sell with a 20% increase ( I just bought my class 87 at nearly half price).

Edited by ColinB
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1 hour ago, Too Tall said:

As there is an already expensive loco I would like to get due out in September, I hope not !

If you really want it preorder it off Hornby now, you will pay 10% more but get points, the price is then fixed. It could be a rumour just to get preorder sales.

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Actually thinking about it the TT120 range would be a favorite. Captive market, no secondhand items to undercut the price and Sam in his last review did say the price of locos was creeping up. That is where we are told investment is needed so why not raise more revenue to fund it. Just have to wait until September. 

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1 hour ago, What About The Bee said:

It must be true, I said it.  Now it can be repeated.

No one in Cyprus told lies, they simply repeated something someone else had said, and it was not polite to disbelieve them. They got really upset when instead of calling them a liar, I simply said if you tell me the sun was shining in July I will go outside to check.

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12 minutes ago, ColinB said:

Actually thinking about it the TT120 range would be a favorite. Captive market, no secondhand items to undercut the price and Sam in his last review did say the price of locos was creeping up. That is where we are told investment is needed so why not raise more revenue to fund it. Just have to wait until September. 

Ebay has a large number of secondhand items. Rails are selling a load and so has KJB. Plus FB Marketplace has had a few, i've bought 3 secondhand loco's now.

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11 minutes ago, Dodge1965 said:

Ebay has a large number of secondhand items. Rails are selling a load and so has KJB. Plus FB Marketplace has had a few, i've bought 3 secondhand loco's now.

I bet nowhere near the amount of OO scale ones. There can't be that bigger choice, they haven't made that many. If you do a search of OO scale there is a huge spread of prices because many of the models have been made for many years. Then there are the broken ones which are generally cheap, which for someone like me, are a doddle to fix. Either way who knows even if the 20% is true, it was said that the price of the new TT120 Duchess was a lot more expensive than the initial offerings. Hornby need to get more cash so perhaps it isn't a rumour, I don't know.

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I can’t see any benefit to Hornby of announcing the increase to anyone so far ahead. I also doubt that they would have decided so far ahead either, or indeed that it would be a flat increase across the board.

It’s just possible I suppose that they’ll increase costs to European dealers if their cost of export has gone up.

I think last year’s increase around May was about 15% and that was when inflation was much higher than it is now. Although that is UK inflation it does represent some international costs affecting goods, including those from China, so a 20% increase seems unlikely?

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36 minutes ago, ColinB said:

I bet nowhere near the amount of OO scale ones. There can't be that bigger choice, they haven't made that many. If you do a search of OO scale there is a huge spread of prices because many of the models have been made for many years. Then there are the broken ones which are generally cheap, which for someone like me, are a doddle to fix. Either way who knows even if the 20% is true, it was said that the price of the new TT120 Duchess was a lot more expensive than the initial offerings. Hornby need to get more cash so perhaps it isn't a rumour, I don't know.

Did i say its was the size of OO?? No. There has been a good number of boxed pre owned.

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4 minutes ago, Dodge1965 said:

Did i say its was the size of OO?? No. There has been a good number of boxed pre owned.

I know I checked after I read your post. Some of them though weren't that much less in price than new ones. They haven't been around long enough to get abused like the OO ones have, so I would expect them to be boxed. 

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On past evidence I would be, to quote a Cypriot reference, not likely to believe anything the queen of Axminster says. 
prices are in general rising, so a price rise of some sort is possible. Something to consider in TT:120 Is that the released specification has vastly increased over the suggested models announced. 

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One thing that could cause some increase in costs is the freight now from China to UK as ships now have to go round South Africa instead of Suez Canal. I know here is Aussie land the costs of stuff sent by sea from Europe and UK is supposed to be skyrocketing.

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3 hours ago, Aussie Fred said:

One thing that could cause some increase in costs is the freight now from China to UK as ships now have to go round South Africa instead of Suez Canal. I know here is Aussie land the costs of stuff sent by sea from Europe and UK is supposed to be skyrocketing.

Interesting point. Someone on some other site was saying a few years ago that it cost more to transport the goods from the port to its final destination. I don't know if that is still the same, shipping costs have gone up a lot. You still get lots of containers on a boat and lots of models in a container, so I don't know what the percentage increase per unit would be by changing the route.

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49 minutes ago, bill7437 said:

The French website Railway has confirmed this price increase of 20%

They probably read the German article🤔 I have just read the whole thread on the German forum, and there is no evidence of where it originated from. The original poster of the information is already being criticised for posting information with no evidence to back it up. 

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1 hour ago, ColinB said:

Interesting point. Someone on some other site was saying a few years ago that it cost more to transport the goods from the port to its final destination. I don't know if that is still the same, shipping costs have gone up a lot. You still get lots of containers on a boat and lots of models in a container, so I don't know what the percentage increase per unit would be by changing the route.

I was a Despatch Manager for a steel building products company and it cost twice as much to deliver in metro area, (even next door) than to a regional town a hundred kms away.

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Given that inflation is a global factor of life, our hobby is not immediately nor from it's effects. In fact, given that modelling may be considered as a relatively small, niche industry, it could be disproportionately affected by any of the elements in it's entire supply chain.

It is a fact that Hornby prices will increase (as will all other manufacturers in the sector). The question is by how much?

We will not know the answer until Hornby announces it. Until then, the unsubstantiated German rumour is like saying my girlfriend's sister's boyfriend it heard from a mate down the pub, so it must be true.

 

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9 minutes ago, Rallymatt said:

@SteveM6, I know that bloke, should have seen the size of the fish he caught…. Obviously no one saw the actual fish.    

We will just have to wait and see. Given their latest trading figures I wouldn't be surprised.

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The report actually reads very well if you know what you are looking at. It’s not perfect but trends are very good and borrowing is for growth and long term development, not keeping the lights on which is when the alarm bells ring. 
Ironically despite the opportunity of CEO to advise investors that there will be price rises (investors like that sort of thing) it’s not even hinted at. There are a range of terms used usually rather than ‘we are putting our prices up’ 

Will there be price rises, absolutely, but does some random bloke on a German forum have any detailed knowledge, unlikely. It could even be a retailer who is trying to increase sales, that’s an old trick 😁

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