Annual loco sales?
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Annual loco sales?
Does anyone have any knowledge of app. how many steam locos are sold in the UK per year?
I have some decisions to make about investment in my future loco manufacturing business so it would good to have a rough idea.
Michael
I have some decisions to make about investment in my future loco manufacturing business so it would good to have a rough idea.
Michael
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That sounds very low unless we are talking about high priced locos which mine will not be.cncmodeller:117355 wrote:15 locos of whatever you produce (If you're lucky) and then maybe 0 or 1 each year afterwards unless its a new design. except if you're established with a bigger advertising budget like Roundhouse\Accucraft.
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First up is the Cracker. Initially I will offer part kits for builders and possibly a RTR loco but unpainted and with no body work. The Cracker lends itself well to playing around with a number of body styles. Further down the line the plan is to make fully RTR Cracker locos available. Target price is around the £250 mark which I think is an attractive price for a gas fired entry-level locomotive.KNO3:117345 wrote:Very nice initiative. I hope it will work out for you. What kind of locomotives are you planning to build?
Some of the components are sourced already and I have the first batch of chassis parts from the laser cutter. Metal for the parts I will be making myself is now in stock.
If I'm only going to sell 15 the first year and then perhaps 1 each following year then it is not worth pursuing though. Maybe I should quit while I'm still not too much out of pocket. I would need to sell closer to 50 per year to make it a sound investment.
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15 a year sounds very low doesn't it? But I promise you the market is more lack lustre than the blurb in magazines would have you believe.
Your problem is that a lot of people are not builders and want ready made and the market is incredibly small. Here's a general selling rule of thumb:- one half of one per cent I.e what is it now? 4000 16mm association members? That then equates to 20 possible sales? Look at Accucrafts net worth, the info is available on the internet, the numbers are very modest. Also railway enthusiasts have a particular interest to them so that cuts down the sales. I know what you're thinking 'if I can earn 2k a month from home with only 50 sales a year it will work out"
You won't be the first to try it!
Your problem is that a lot of people are not builders and want ready made and the market is incredibly small. Here's a general selling rule of thumb:- one half of one per cent I.e what is it now? 4000 16mm association members? That then equates to 20 possible sales? Look at Accucrafts net worth, the info is available on the internet, the numbers are very modest. Also railway enthusiasts have a particular interest to them so that cuts down the sales. I know what you're thinking 'if I can earn 2k a month from home with only 50 sales a year it will work out"
You won't be the first to try it!
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Actually that is not my thinking. No way I would be making that much from this. If I have an idea of realistic sales volume I can plan my outgoings accordingly. One thing to keep in mind is that the loco will be priced at a level where it might appeal to toy steam enthusiast so I am not entirely dependent on the whim of 16mm modellers.cncmodeller:117363 wrote: I know what you're thinking 'if I can earn 2k a month from home with only 50 sales a year it will work out"
You won't be the first to try it!
Thanks for you input though, I appreciate it and it is something I will keep in mind. As it stands now I haven't invested more than I can recover.
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The global market is small which is why there are not many manufacturers and there are always some coming and going. When you look at batch numbers even the larger builders only seem to make 100-200 of each type per batch. I would guess that total world production of all live steam locos in 32mm and 45mm gauges would be well under 10,000 per year. LGB tried to get into the live steam market in the late 90s with their Aster Frank S model and not understanding the small market ordered 3000 to get the unit price down but ended-up flooding the market with many sitting in their warehouse for years and then being sold off at a loss.
Don't let the popularity of 16mm in the UK influence you too much as worldwide the big market is for 45mm gauge, not 32mm for live steam whether for narrow or standard gauge models.
If making small numbers you probably need to go for the higher end more detailed market and take advance orders. There seems to be several UK manufacturers starting up or improving their range to try and take on Accucraft and Roundhouse so that market will probably become quite competitive over the next year or two at this end.
Don't let the popularity of 16mm in the UK influence you too much as worldwide the big market is for 45mm gauge, not 32mm for live steam whether for narrow or standard gauge models.
If making small numbers you probably need to go for the higher end more detailed market and take advance orders. There seems to be several UK manufacturers starting up or improving their range to try and take on Accucraft and Roundhouse so that market will probably become quite competitive over the next year or two at this end.
Cheers, Steve
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Yes, that does seem to be the trend which is why I'm going in the other direction. Budget, entry level. I think a gap is developing there. I could be entirely wrong of course....funandtrains:117366 wrote:
If making small numbers you probably need to go for the higher end more detailed market and take advance orders. There seems to be several UK manufacturers starting up or improving their range to try and take on Accucraft and Roundhouse so that market will probably become quite competitive over the next year or two at this end.
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Good luck, I look forward to seeing what you propose. If you can get the price down to £300 you will certainly get plenty of buyers if it works well and does not have visible oscillating cylinders.Busted Bricks:117368 wrote:Yes, that does seem to be the trend which is why I'm going in the other direction. Budget, entry level. I think a gap is developing there. I could be entirely wrong of course....funandtrains:117366 wrote:
If making small numbers you probably need to go for the higher end more detailed market and take advance orders. There seems to be several UK manufacturers starting up or improving their range to try and take on Accucraft and Roundhouse so that market will probably become quite competitive over the next year or two at this end.
Cheers, Steve
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As mentioned above, I am talking about the Cracker locomotive so the engine is very visible.
Last edited by Busted Bricks on Mon Apr 11, 2016 11:20 am, edited 1 time in total.
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This design has had at least 2 builders before and was rather a novelty loco with limited numbers sold, no doubt due to the price then being high for what you got. The small size though will appeal to those running quarry lines if you can get the price down.
The reduced cost of computerised manufacture and design does seem to have made closer to scale models more affordable to make and there does seem to be a move in popularity away from more freelance designs.
The reduced cost of computerised manufacture and design does seem to have made closer to scale models more affordable to make and there does seem to be a move in popularity away from more freelance designs.
Cheers, Steve
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