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Stephen

Airfix 2018 range announcement due 10.00 09/01/2018

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3 minutes ago, Enzo Matrix said:

As a callow youth, the Airfix catalogue was something that I had to have each year.  How I wish I had kept those from the 70s.

Me too!

 

I bought a few of the classic 70s ones on eBay in a fit of nostalgia, then stupidly sold them on.

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11 hours ago, alex said:

One of the first lessons in marketing. Don't charge for the effort you had, charge what the customer is willing to pay!

 

BTT, I must have missed that the sea king is a new tool, looks intersting as well because of the foldable rotor. Takes little shelf space, which is nice!

 

Alex

 

 

There will always be some customers who will pay anything for something. By this logic you are also justifying Hasegawa's obscene UK pricing on its new kits... clearly *some* people buy them.

 

However, just because some people buy a certain product at a certain price does not mean that's the ideal market price that maximizes company revenue. If proportionally more people buy a Shackleton than what it's price is reduced, then both Airfix and the consumers win. Microeconomics 101.

 

Hasegawa can not care what it sells in the UK market because it's not its main one, but I read somewhere (was it this thread?) that the UK accounts for nearly half of Airfix's revenue. So it's plain stupid. And I will point out the fallacy of assuming that just because a major company makes a certain decision, they "know better". The modelling industry is awash with bad marketing decisions from nearly every major producer (Revell, IMHO being arguably the most egregious)

Edited by Phantome

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Any product with a distributor margin in will be more expensive. 

 

Hasegawa sells to a UK distributor. They sell to the retailer the retailer sell to you. 

 

Airfix in the uk act as the manufacturer and distributor so there is one less margin in the sales chain.

 

The additional margin and it’s % are the reason for the cost of the product.

 

Its entirely logical that you might wish to make more margin off of some products then others. Especially if it moves on relatively low volumes. We could reasonably suppose that a 1/72 Shackleton has a different sales pattern to say a 1/72 P-51 so we might choose to increase the margin on the Shackleton to make it viable for us.

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4 hours ago, TEXANTOMCAT said:

on the 15% side of things - a poster mentioned that there was a 10,000 run of Phantoms and they have sold out - surely thats more than 15% of revenue on its own?

 

 

Its only the initial batch in the Aifix webstore thats sold out, they are readily available all over t'internet and in LHS across the country.

 

From what I can see with all the recent issues (last 12 - 24 months or so), it seems that Airfix bring in an initial batch of kits sufficient to satisfy their pre-orders (both online retail and wholesale) and then approximately a month to 6 weeks later a larger batch arrives on the slow boat.

 

Virtually every new issue kit I've been interested in has been in stock very temporarily (often just a couple of days in some instances), then once the initial batch is gone it reverts to pre-order and then available again once the main batch arrives.

 

The Phantom is currently showing as available again in March.

 

 

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6 hours ago, TEXANTOMCAT said:

P.S. anyone seen that WH Smith is selling Airfix catalogues?

 

Yes, got mine today

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1 hour ago, Plasto said:

Airfix in the uk act as the manufacturer and distributor so there is one less margin in the sales chain.

 

Which makes their pricing levels even less defensible...

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Gents, as with other Airfix threads of late this one seems to be inflaming peoples passion on the subject with call of liars etc. 

 

Please can we calm things down.

 

Thx

 

Julien

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2 hours ago, Plasto said:

Any product with a distributor margin in will be more expensive. 

 

Hasegawa sells to a UK distributor. They sell to the retailer the retailer sell to you. 

 

Airfix in the uk act as the manufacturer and distributor so there is one less margin in the sales chain.

 

The additional margin and it’s % are the reason for the cost of the product.

 

Its entirely logical that you might wish to make more margin off of some products then others. Especially if it moves on relatively low volumes. We could reasonably suppose that a 1/72 Shackleton has a different sales pattern to say a 1/72 P-51 so we might choose to increase the margin on the Shackleton to make it viable for us.

Hasegawa's US prices are near double what they charge in Japan for the same item. The US doesn't have import tariffs on kits nor is there a VAT, which instantly adds 20% to the price in the UK. That suggests that Hasegawa is charging  it's overseas distributors pretty close to the Japan retail price and transport, tariffs, and taxes result in ridiculous retail prices in most foreign markets. The difference between Hasegawa's home market price and overseas market price is not all down to distributor markup. Interestingly, the Hornby USA price for some Airfix kits is less than on the Hornby UK site. As an example, The 1/48 P-51D is $26.99 on Hornby USA but a UK buyer would pay the equivalent of $27.91 from Hornby UK. How does that work?

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1 hour ago, Phantome said:

 

Which makes their pricing levels even less defensible...

There is nothing to defend. The product they make is not an essential to life or some sort of essential medication. ( or is it???)

 

It’s just a consumer product like a TV or WHY. The price is set and the market pays or not.

 

A business like Hornby exists to make money and return a shareholder profit. 

 

What tends to happen is the initial RRP  is set and then the market decides how much notice it will take of the RRP and if they will discount the kit. What the market price becomes is often not related to RRP more so if purchased down a specialist channel. 

 

Also as Mike pointed out earlier my  perception of value is different to other folks. 

 

Im personally undecided on which Sea Fury is best for an Iraqi one..

 

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20 minutes ago, VMA131Marine said:

..................................................................Interestingly, the Hornby USA price for some Airfix kits is less than on the Hornby UK site.

As an example, The 1/48 P-51D is $26.99 on Hornby USA but a UK buyer would pay the equivalent of $27.91 from Hornby UK. How does that work?

And here was you thinking that USPS was an absolute pile of  :poop: !! :whistle:

 

Paul

 

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26 minutes ago, VMA131Marine said:

Hasegawa's US prices are near double what they charge in Japan for the same item. The US doesn't have import tariffs on kits nor is there a VAT, which instantly adds 20% to the price in the UK. That suggests that Hasegawa is charging  it's overseas distributors pretty close to the Japan retail price and transport, tariffs, and taxes result in ridiculous retail prices in most foreign markets. The difference between Hasegawa's home market price and overseas market price is not all down to distributor markup. Interestingly, the Hornby USA price for some Airfix kits is less than on the Hornby UK site. As an example, The 1/48 P-51D is $26.99 on Hornby USA but a UK buyer would pay the equivalent of $27.91 from Hornby UK. How does that work?

On a lighter note.......Maybe Airfix are worried that if they don't sell them cheaper in America, someone may dump them in Boston Harbour.

 

Peter

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1 minute ago, Blackfordhibby said:

On a lighter note.......Maybe Airfix are worried that if they don't sell them cheaper in America, someone may dump them in Boston Harbour.

 

Peter

Peter, NICE ONE! :rofl2::rofl2::rofl2:

 

Paul (NO cracks about Mary, it's................womens problems!)

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I am pleased to see that the Airfix 2018 catalogue is available in Tesco or WHS. It makes it easier for me to get one =I still have all mine back to 1962 when it was about 6pence or 9pence in real money But All mine are treasured and will continue to do so.

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2 hours ago, PhoenixII said:

And here was you thinking that USPS was an absolute pile of  :poop: !! :whistle:

 

Paul

 

Not sure I follow, but okay. Things have been known to go over my head. I actually like USPS a great deal.

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2 hours ago, Blackfordhibby said:

On a lighter note.......Maybe Airfix are worried that if they don't sell them cheaper in America, someone may dump them in Boston Harbour.

 

Peter

Fine by me! Boston Harbor is currently frozen making for easy retrieval. 

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17 hours ago, Albeback52 said:

 I know costs etc have risen, it's just that I am not necessarily convinced that a shiny new decal sheet in, for example, the Lightning F6 justifies a near 35% price increase. That however is just me. I have to be practical.

 

I'm not interested in getting involved in a debate over prices. It's down to personal choice  as to whether an item is deemed good value or not. I do concur however that, compared to kits of far Eastern origin, Airfix are still comparatively cheap. You pays your money, you takes your choice!:rolleyes:. Any concerns I may have over kit prices are general and, not restricted to Airfix specifically

 

Allan

 

Of course, it might be that in the interim the cost of making the kits, printing and packaging have risen, rather than Airfix trying to stiff us more for a shiny new decal sheet

 

As a pensioned off early retiree I have a lot of sympathy for others who just can't afford to buy whatever they want regardless of cost, but we shouldn't lose sight of the fact that Hornby too has to work within a budget.  It will be *very* interesting to see what the fabled cheap Revell equivalents (Lancaster, Shack etc) will cost now that Hobbico is in difficulties and may need to trade more profitably or go under.

 

Shane

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On 09/01/2018 at 2:22 PM, Enzo Matrix said:

That's not a problem.  Airfix provide a strategically placed ladder to act as a prop.

I just filled the space between cockpit and bomb bay with ballast. After painting the inside of the little Windows black!!  

 

Allan

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6 hours ago, VMA131Marine said:

Hasegawa's US prices are near double what they charge in Japan for the same item. The US doesn't have import tariffs on kits nor is there a VAT, which instantly adds 20% to the price in the UK. That suggests that Hasegawa is charging  it's overseas distributors pretty close to the Japan retail price and transport, tariffs, and taxes result in ridiculous retail prices in most foreign markets. The difference between Hasegawa's home market price and overseas market price is not all down to distributor markup. Interestingly, the Hornby USA price for some Airfix kits is less than on the Hornby UK site. As an example, The 1/48 P-51D is $26.99 on Hornby USA but a UK buyer would pay the equivalent of $27.91 from Hornby UK. How does that work?

 

I wonder if the bolded bits are connected?

 

Shane

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9 hours ago, IanC said:

 

Was the catalogue free in days of yore? I can't remember. I assumed you always had to buy it? Just wondering...

 

But there seems no need to have one these days anyway.

 

It cost  one shilling and sixpence in 1968 and three shillings in 1971.  The only old catalogues of mine that survived the great garden shed flood of 1983

 

Shane

 

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6 hours ago, VMA131Marine said:

Hasegawa's US prices are near double what they charge in Japan for the same item. The US doesn't have import tariffs on kits nor is there a VAT, which instantly adds 20% to the price in the UK. That suggests that Hasegawa is charging  it's overseas distributors pretty close to the Japan retail price and transport, tariffs, and taxes result in ridiculous retail prices in most foreign markets. The difference between Hasegawa's home market price and overseas market price is not all down to distributor markup. 

Hasegawa (and other Japanese makers) typically charge their overseas distributors less than what they charge Japanese distributors.  This is because within Japan, the maker pays for most advertising, not the distributors or shops (although many large shops also advertise in the modeling press).  In overseas markets, advertising is generally assumed to be paid for by the distributor/importer, and to compensate them for those extra costs the makers offer better pricing.  For the US market, assuming the distributor is bringing things in by ocean freight, their landed cost for any given kit is likely only a few percentage points more than what a Japanese hobby distributor would pay for that same kit.  If they are using air then their landed cost is probably 10-15% more than a Japanese distributor's cost.

 

I do not know what goes for "reasonable margins" in the US Hobby Industry, but I do know what they are here in Japan, and they are slim. There are two layers between the maker and the consumer taking their cut and "normal" retail for kits is considered to be 20% off MSRP - so shops sell at 80% of list but no, they aren't buying at 50% of list.

 

So yes, the fact that list retail in the US is around double the Japanese retail is largely down to the markups after arrival. 

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I hope Airfix's tooling contractor has done "substantial" work on the Camel mould. It was below marginal the last time it was generally released in the RAF 90th Anniversary boxed set, but I don't know if any improvements were carried out before it was included in the recent WW1 Challenge Resource Pack. 

 

John

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With regard to Hasegawa pricing in the UK, it is worth noting that their UK distributor is now the importer for Minicraft. Since that happened the price of Minicraft kits has gone significantly upwards. I do not see it as a coincidence.

 

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Now we've got Hasegawa being brought into the mix, this thread is going exactly nowhere... as expected.  I'm closing it down. :fraidnot:

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