Hi Ed --
I think if you look into it, the difference is STAFF and distribution
expenses. OMI, SHS, RRM, AM, SWM all have/had significantly less staff and
distribution related expenses than the big L. I suspect that Lionel also
has several “investors” that need their cut, whereas the afore mentioned
companies are sink or swim, wholly owned or partnership companies. MTH is
a different story, of course, but I think Mike has pretty much called the
shots all along and not a bunch of staff.
I have a long time friend who was always saying,"No balls, no blue chips",
and he took big chances. Now he has neither... But so it is for the
small purveyor-maker-importer of S. If they hit it right, the ball goes
out of the park. If they don't, it hurts. And sometimes their game gets
rained out (SHS).
Lionel has been through several tough times and owners since the founder
died. I am sure that the current conservative approach comes from years of
challenge.
Have fun!
Bill Winans
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Rich....
I think you are very observant about Lionel. The Lion is very conservative
and seems to avoid risk at every opportunity. Other firms such as Overland
Models, MTH, S-HS, RRM, AM, SWM, etc. jump right in and actually sell
everything they ever make over a period of time. Not immediate, of course,
but eventually it is all sold.
Just thinking about the differences in corporate culture. Is there an
explanation for that? If we understand the reasons/rationale, perhaps we can
overcome the resistance.
Just thinking....Ed L.
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