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Forums - News / General |
For General modelling or hobby-related topics that are not covered by any other specific forum. Please keep to topics concerning the hobby. |
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| Messages | 22398 |
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| Subject: | Re: From Mr. Tamiya through a reliable source |  |
| Date: | May 18, 2005 |
| From: | Paul Roberts | |
>>Everything breaks even eventually
Actually that's not true, in a financial sense. Breaking even financially is achieving a suitable "Return on Investment". In essence your business venture or project has to make more money than the cash would have done sitting in a bank at "X" percent interest. Generally most companies see a 2-3 year ROI as being where they target their investment dollars. I.e if in three years you pay back all the capital and variable costs plus earn enough profit to better the amount of interest all that money would have made if it was in the bank, _then_ you have broken even. While you eventually will make back the costs if you continue to sell kits even at a slow rate, if it takes too long, you would have done better to just put the money in the bank. If the cash equivalent of all the costs would have generated more interest if invested conservatively then you will never "break even" as you will have always lost money compared to just putting the cash in the bank.
Given that Tamiya can reissue kits at minimal capital cost, their calculations may not be as simple as someone looking to amortise a new welding robot in a plant, but the calculation will still be done if you are to justify the half million or more in total costs for a new kit.
This also gets back to the more competition/less competition thing. While generally more competition is good as it drives down cost and drives up quality (at least in an ideal world and market), in this case I believe a little collusion amongst the manufacturers would probably be to the betterment of the whole hobby. If the big guys would get together & divvy up some of the more risky vehicles and avoid duplication, they could go head to head on the vehicles where there are lots of buyers and not risk their H39 being bumped by a second kit. The number of buyers for an H39 is much less than that for a new Pz III, butt he tiooling & capital outlay will be much the same. Two manufacturers for limited interest kits really hurts both companies whereas if Trumpeter was to be able to get all the H39 sales & Bronco was to get all the Staghound sales then both companies would do better and we could, reasonably, get more vehicles overall.
Whatt thinkest thee?
Paul |
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 | Same Kit Subjects from Different Manufacturers - Bob Gregory - May 16, 2005 |
| . . . Re: Same Kit Subjects from Different Manufacturers - Philippe - May 16, 2005 |
| . . . . . . Re: Same Kit Subjects from Different Manufacturers - MIchael Karnowka - May 16, 2005 |
| . . . Do you own a Dragon Wagon? - Kevin Johnson - May 16, 2005 |
| . . . . . . Re: Do you own a Dragon Wagon? - Paul Roberts - May 16, 2005 |
| . . . . . . . . . Re: Do you own a Dragon Wagon? - adam lehmann - May 16, 2005 |
| . . . . . . Re: Do you own a Dragon Wagon? - Bob Gregory - May 16, 2005 |
| . . . . . . . . . Re: Do you own a Dragon Wagon? - Paul Clark - May 16, 2005 |
| . . . . . . . . . . . . Re: Do you own a Dragon Wagon? - Paul Roberts - May 17, 2005 |
| . . . . . . . . . Re: Do you own a Dragon Wagon? - Billy Bishop/Michael Wawrow - May 16, 2005 |
| . . . . . . . . . . . . Re: Do you own a Dragon Wagon? - Paul Roberts - May 17, 2005 |
| . . . . . . . . . German only? - Kevin Johnson - May 16, 2005 |
| . . . . . . . . . . . . Re: German only? - Bob Gregory - May 16, 2005 |
| . . . . . . Re: Do you own a Dragon Wagon? - Michael Karnowka - May 16, 2005 |
| . . . . . . . . . From Mr. Tamiya through a reliable source - Kevin Johnson - May 16, 2005 |
| . . . . . . . . . . . . Re: From Mr. Tamiya through a reliable source - Mike - May 17, 2005 |
| . . . . . . . . . . . . . . . Re: From Mr. Tamiya through a reliable source - Bob Gregory - May 17, 2005 |
| . . . . . . . . . . . . . . . Re: From Mr. Tamiya through a reliable source - Kevin Johnson - May 17, 2005 |
| . . . . . . . . . . . . . . . . . . Re: From Mr. Tamiya through a reliable source - Paul Roberts - May 18, 2005 |
| . . . . . . . . . . . . . . . . . . . . . Re: From Mr. Tamiya through a reliable source - Bob Gregory - May 18, 2005 |
| . . . . . . Re: Do you own a Dragon Wagon? - Paul A. Owen - May 16, 2005 |
| . . . Re: Same Kit Subjects from Different Manufacturers - Paul A. Owen - May 16, 2005 |
| . . . Why not? - Mike Bedard - May 17, 2005 |
| . . . Re: Same Kit Subjects from Different Manufacturers - Christopher C. Tew - May 18, 2005 |
| . . . . . . Re: Same Kit Subjects from Different Manufacturers - Pat Alexander - May 18, 2005 |
| . . . . . . . . . Re: Same Kit Subjects from Different Manufacturers - Paul A. Owen - May 18, 2005 |
| . . . . . . . . . . . . Re: Same Kit Subjects from Different Manufacturers - Paul Roberts - May 18, 2005 |
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