I'm not willing to risk hundreds of hours doing research and creating CAD
files and thousands of dollars buying patterns, parts, decals, etc. just to
test a potential market.  That's why I solicit modelers . those who build
things, not just collect . for their ideas.  As for advertising, I did that
before in RMC and the NASG Dispatch.  Both got no response so I dropped
them.  I'm also not interested in buying an ad in Model RR Hobbyist simply
because the percentage of S scale readers, let alone BUYERS, is so small
that even with an estimated 30,000 on-line readership, I can still reach the
majority of my target market via Yahoo lists and my email list created from
previous buyers and recent inquiries.

 

The fact remains that of the 150+ members on my emailing group, which
represents a large chunk of the S scale environment, only 1/3 bothered to
reply.  Why would spending $$ on ads change that percentage?  My target
market has ALWAYS been scale modelers, not hi-railers.  With few exceptions,
hi-railers don't build rolling stock or engines; they buy RTR.  No more than
20% (often just single digits) of any of my diesel kits went to hi-railers.
Scale modelers are the guys who BUILD my kits, not just take a RTR car out
of a box and run it.  Those aren't modelers; they are collectors.  That's
not my market and never will be.  I'm **NOT** willing to compromise my level
of detail to cater to the hi-rail crowd.  There is no room for discussion.
If you don't agree with my philosophy, that's your call.  If you think you
can cater to the hi-rail market better than SMMW, by all means, hang you
shingle out and become a manufacturer.  Happy trails to you!

 

One very big piece of the puzzle that no one has considered is that, unlike
a LARGE part of S scale, I'm not retired.  More than 1 person has commented
that, at age 53, I'm a "youngster in the scale".  That should be VERY scary
to anyone giving it more than just a second's worth of thought.

 

My bread is buttered from the industrial side of SMMW.  Granted, the model
side does generate decent income but not enough to solely pay the bills.
With the last of my HO SAL B7 boxcars due to ship by the end of December, I
will shut down all HO manufacturing to focus on my industrial business and S
scale products.  Recently, I became Trainmaster on a local shortline and a
LOT of really cool things have happened over the past 3 weeks, not the least
of which is the arrival of ex-Alexander RR Co. S-3 #7.  My time is now
divided between industrial, model making and the railroad.  Guess which one
gives me the most pleasure?  Unfortunately, it's also all-volunteer based
but we hope that changes in 2015.  Should we grow to permit even part-time
pay for the key employees, I will be refocusing my efforts on (1) industrial
work and (2) the railroad.  Eventually, if it's God's will, I'll be a
full-time railroader which has been a dream of mine since childhood.  Model
railroading, both personal and as a manufacturer will diminish, so S scale
products releases will be farther apart and, eventually, cease just like HO.

It's no secret that all hobbies in general have declined over the past 10
years.  For model RR'ing, the sales potential in ANY scale will eventually
decline to the point that it's no longer profitable to continue
manufacturing for many companies.  HO is already there; my HO sales last
year were less than half what they were just 3 years earlier.  Three resin
kit manufacturers have closed this year alone and one of the "big names"
remaining has downsized drastically and eliminated show attendance.  Due to
his age and health problems, that company could very well close its doors
next year.  Sales have declined for all manufacturers, whether kit makers or
RTR, for a very long time.

 

The best advice I can give is this:  instead of splitting hairs about scale
wheels or not, big couplers or not, or the recent MTH and Lionel comments,
how about banding together to come up with a list of items that a majority
of folks would buy?  Reservations and "I will take 3" mean nothing if the
money isn't there when the product is unveiled.  Hearing from 35 people with
each one wanting something different will NOT excite a manufacturer enough
to risk a large investment.

 

Jim King

President, Smoky Mountain Model Works, Inc.

Ph. (828) 777-5619

www.smokymountainmodelworks.com

 

Trainmaster, Craggy Mountain Line RR

www.craggymountainline.com

 

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