Gateway Global/Autoart dropped a bomb on the industry yesterday with the announcement of yet another dealer cost increase, the second of '05, citing increased production costs from China. This explains the delays in expected new item releases this month, as they wanted to make sure that new items billed to the dealers at the "new" price. - Nice folks!
Every time they do that, I'm considering 1/43 models from companies like Red Line, Spark and Ebbro more and more. I can see those car becoming more of the core focus in the future.
why can other manufacturers keep their prices constant (Minichamps, Kyosho) yet AUTOart has to price increase twice in a year? It's not as if their models were:
1) cheaper than the other 2 brands
2) better detailed/better materials than the other 2 brands
3) built in another country from the other 2 brands
So only thing I can think of is... pure greed. There's only a certain point where one can increase prices to make more profit, then the loss of customers start to affect adversely the profits (i.e. loss). And taht's only in a monopoly situation! With other alternatives (mainly Kyosho), I see myself buying fewer and fewer AUTOart's. Heck, the only AUTOart's I'm buying recently are mostly old AUTOart's, before the price increase.
Exoto and AUTOart and whoever else has to realize that these things are a luxury and not something that anyone has to buy to survive.
There is a price point where people will just stop buying.
:iagree Only problem is that AUTOart are the ones doing the Merc 190s Maybach etc...If Kyosho were to take some of those on, then I would ditch AUTOart no problem
ive already slowed down on the AUTOart's and have been getting most of the new Kyosho.. i mean the older AUTOart's are kewl.. but even a little high most places since the last price increase
:cheers
lmk and we can split it.. one week your track choice.. the next week mine.. deal? then we can get an f50gt too while we are at it.. i mean.. come on.. we are all filthy stinkin rich arent we?????
There have been many of discussion on this topic concerning AUTOart price increases, here on DX as well as other forums and each time the sentiment seems to be the same.
But for whatever reason, AUTOart has not recieved the message that collectors are not happy with the limitless price increases.
I guess collectors wallets are not speaking loud enough.
If you buy them, they will view the prices as reasonable, if you don't buy, maybe they will then understand the sentiment. However, until that time is upon us... don't know what to say. but I do know what I am going to do, and thats not purchase $100 models unless they are of Exoto caliber. That means no fantasy cars with made up numbers, assembly jobs which took a shortcut, plastic molded engines and obvious inaccuracies.
Its very obvious to me from their latest/newest releases that the quality and details of their model have not risen with their prices. Something a blind man can see. :shipwrecked
I wouldn't say that every new model is comming out with some kind of gross flaw, but at least some are. Citing names, the Le Mans GT3 RS was horribile, but the 328 bimmer was spot on. What will I do? I'll be VERY selective of what I buy from them. If the sales of the poorly made models sink, the message will be loud and clear: "don't make crap 'cause we ain't buying crap".
So rising costs in China have caused both AUTOart and Exoto to raise their prices?! ullhair How gullible do they think we are? Those poor people are lucky to get paid $1 a day! If I really thought that the increases were to benefit their workers, not only would I not complain, I would greatly applaud the companys' consideration for their workers. But we all know that's not the case. in my opinion, using this as an excuse to increase profits is pretty low! :mine
Actually, there are more high tech jobs and manufacturering jobs in China that is paying much higher salary than, say, model manufacturering, so a lot of those skilled workers are now working in higher paying jobs.
In other words, they have to increase their salary, hire new people and train them again, which is why they have to increase the price. (That also explains the QC problem some of you pointed out)
I really don't think that $1 a day is valid anymore in the civilized part of China.
Another thing to consider is that in addition to AUTOart's own cost, the currency rate, distributor margin, and dealer margin all have to be maintained (in addition to that MSRP policy that AUTOart implemented). No one wants to operate a business that doesn't make money...
PS What is the % increase anyway? anyone know?
PPS For what it's worth, Minichamps had already increased their price on some 1/43s already.
All I can say is if they're going to charge as much as they are charging, these models better be spot-on with no cutting corners and top-notch quality control. As prices increase, my expectations does too proportionately. There are no must-have models for me anymore at $100+ a pop. If a model is not right, I'll pass it up without a second thought.
If they can consistenly produce models of the same quality as the Jaguar XJ 13 and sell them for under $100, I'll still be a customer, I'll be content, but I will be more selective of my purchases.
I didn't realize China's standard of living and inflation has increased so much this year!! :lol
As far as I see, the increase in prices is not justified.....the quality of their products have not increased in the same proportion. I agree with Louis, these price increases have made me look towards Kyosho and PMA more and more for my model needs.
Oh my! I guess I'd better quickly reopen my diamond mines in Brazil and build some more oil rigs in the Caspian Sea so I won't be low on cash when AUTOart's next releases come out at the new and improved prices! :lol
I haven't read the article yet, but when someone posted that picture of them handling the new MB, slave wages is the first thing that came to my mind.
Being that this hobby has no regulation, imagine if a overzealous politician reads that article, imagine what prices would soar to then. Remember the clothing industry...
we shall be fine.. i have a nice video of the f50gt if your interested.. pm me..
.... p.s. my track choices to follow.... :310 for the first and second rounds.. :cheers
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Related Threads
?
?
?
?
?
DiecastXchange Forum
1M posts
14.9K members
Since 2003
A forum community dedicated to diecast owners and enthusiasts. Come join the discussion about collections, displays, models, styles, scales, reviews, accessories, classifieds, and more!