Production cutbacks (1 Viewer)

[wayne556517]

Not only are they going to have cutbacks K & C seems to raise there prices almost every month .

Whats gone up this month...............^&confuse

 

[joesgis]

Warehousing can be a tremendous carrying cost for any manufacturer in any industry, not to mention that you need to move inventory as quickly as possible, which can be a problem with consumers always wanting the newest thing. Thus, if
things aren't moving as quickly as you'd like, lower your production numbers. I think manufacturers are probably trying to find the right balance between forecasts and expected demand. If your forecast exceeds demand, you've got a huge problem.

I think Brad has nailed it here. Various manufacturers are having to develop such strategies these days. Forecasting material usage and product movement is always a tricky balancing act of experience, instinct and statistical analysis. And the like Brad stated, consumers always want the newest thing because that is what is most salient to them in the present.

 

[joesgis]

Whats gone up this month...............^&confuse

I may be wrong but think Panzer Meyer is probably referencing WS187 and WS190. Those are the ones that are priced higher than comparable recent releases.

 

[jules118]

Keep in mind the rationale that was used to justify the price increases of older releases at the end of last year. It went something along the lines of it costing more to produce a set today than it did to produce the same set when it was released two or three years ago.

That would indicate, to me, that the whole production run is not manufactured at the outset and then warehoused. Rather X amount is made initially and then further quantities produced as demand and stocks dictate. So the warehouse costs argument does not entirely hold up imo.

The cynic in me thinks that maybe a way to encourage sales is to suggest that despite the higher prices of the newer items, if you don't buy them soon, they won't be around for much longer and try to encourage a 'feeding frenzy' early on... and keep on producing whilst the demand is there. Which may not be unlike the current situation anyway, but just a way of 'encouraging' buyers to purchase ahead of when they otherwise would and according to their usual priorities. But maybe I'm becoming too jaded as a result of recent disappointments and unfulfilled promises.

 

[Rob]

As collectors I don't think we can say we weren't told about this way in advance, when the list of price increase items was released at the end of last year Andy most certainly did say that all the items would be retiring in the near future.

Rob

 

[OldDragon]

... I wonder if for instance Naps may take a big hit next time?.

Rob

Hi Rob

To be pefectly honest. I would welcome more NAP retirement. Some, like the French Grenadiers, Imperial Guard and the Scots Grey have been around for ages (in TS terms). Retirement paves the way for new releases.

K&C NAP collectors have been clamoring for new British cavalry releases for some time now. However, I believe that if the K&C Greys are not retired, we will not see any new British cavalry.

IMHO .. please retire all the pre-2009 NAP releases.

OD

 

[Rob]

Hey OD,

Good point mate. The upside of this new policy is there will be lots of room for lots of lovely new releases!:smile2:

Rob

Hi Rob

To be pefectly honest. I would welcome more NAP retirement. Some, like the French Grenadiers, Imperial Guard and the Scots Grey have been around for ages (in TS terms). Retirement paves the way for new releases.

K&C NAP collectors have been clamoring for new British cavalry releases for some time now. However, I believe that if the K&C Greys are not retired, we will not see any new British cavalry.

IMHO .. please retire all the pre-2009 NAP releases.

OD

 

[Mitch]

I think this will only cause further losses in collectors and the amounts they will buy or can afford to buy. I don't think this will encourage most collectors in the slightest it will make difficult decisions i.e. look at the tribulations expressed in some recent threads ... do I buy new stuff concentrate on old stuff, or look at discontinued... many collectors face very difficult decisions on choice and budget every month and, with this and increasing prices collectors both on here and collectors I speak with are looking elsewhere where there is less ''pressure''

I think a few months of limited runs coming out and the apparant ''frenzy'' (others words not mine) and collectors will tire of the monthly rush. There have been many innovations in the last few months and this is another. How one interprets these announcements is up to the individual. I think we will either see a drop in number of releases per dispatch or, the end of the monthly dispatch.

Certainly interesting times ahead
Mitch

 

[marco55]

This is a tough call as I understand why KC is doing this. Many collectors who want to collect a range may miss a few figures/sets and just quit buying that range out of fustration.Jenkins does LE and it seems that there is enough for everybody but KC's customer base is probably much broader.Time will tell but everything will work out one way or another.It always does.
Mark

 

[maddadicus]

We collectors are like spoiled kids given everything we want or demand( new releases every week, bigger vehicles, more detailed sculpting and painting, same pricing, etc.), but when Dad loses his job, they cannot understand the concept of cutbacks, givebacks, and financial hardship. They moan ,why do I have to live on less and then tell Dad they hate him...That seems to be the relationship some collectors have with K/C, only. They are the biggest and should be recession proof. How dare they scale back, raise prices, and try to maintain profits. It's OK for every other mfg. to make production runs at considerably smaller quantities. It's OK if their prices should go up or are the highest in the land to start. It's OK if they put out a few new sets every 3-4 months. Why is it not OK for K/C?..Look at any of our every day living expenses which are climbing at unsustainable levels and no matter our income, most of us have had to cut back, stock less in the shelves, and redistribute our spending priorities. No conspiracy or ulterior motive in that...Michael

 

[Phantom Warrior]

Andy's post did also state that they are still looking for more factories further afield but in the meantime these measures are needed, so perhaps it could be a short-medium term situation?.

One things for sure, it sure does make you consider which items you really want most of all.I've already got my list and will be picking those off as and when. It would appear that in this first wave of retirements that WW2/LAH took the biggest hit, I wonder if for instance Naps may take a big hit next time?.

Rob

I expect that WWII will be the group of ranges most affected as they are the largest range and have most of the high cost models such as AFVs and aircraft. Most other ranges have few high cost items - they are mostly single figures. And in some of those ranges like Naps, collectors buy multiples of each figure, so I expect fewer retirements from those ranges.

Terry

 

[Mitch]

once changed I would suspect they will be changes for good. I wonder how it only seems K&C are affected?? this is only really a rhetorical question.
Mitch

 

[jazzeum]

Andy's post did also state that they are still looking for more factories further afield but in the meantime these measures are needed, so perhaps it could be a short-medium term situation?.

One things for sure, it sure does make you consider which items you really want most of all.I've already got my list and will be picking those off as and when. It would appear that in this first wave of retirements that WW2/LAH took the biggest hit, I wonder if for instance Naps may take a big hit next time?.

Rob

Maybe, yes, maybe no, short term. You first have to find the factory, assess the costs, and have them make samples, all of which does take some time.

 

[lancer]

Keep in mind the rationale that was used to justify the price increases of older releases at the end of last year. It went something along the lines of it costing more to produce a set today than it did to produce the same set when it was released two or three years ago.

That would indicate, to me, that the whole production run is not manufactured at the outset and then warehoused. Rather X amount is made initially and then further quantities produced as demand and stocks dictate. So the warehouse costs argument does not entirely hold up imo.

The cynic in me thinks that maybe a way to encourage sales is to suggest that despite the higher prices of the newer items, if you don't buy them soon, they won't be around for much longer and try to encourage a 'feeding frenzy' early on... and keep on producing whilst the demand is there. Which may not be unlike the current situation anyway, but just a way of 'encouraging' buyers to purchase ahead of when they otherwise would and according to their usual priorities. But maybe I'm becoming too jaded as a result of recent disappointments and unfulfilled promises.

If you are a cynic, than so am I. This is the first thought that struck me, also. Perhaps the thought is incorrect, but maybe it is a shrew marketing strategy. Mitch, in post #29, also has a very good point. This move doesn't bode well for collectors who must budget.I would rather have seen a cutback in the number of new offerings than a cutback in the production numbers of what is offered. I don't need or want releases on a monthly basis but I do need time to finance what I do want. I can't spend money on a new release just to avoid losing out on it down the road. I have to plan. Having something available for a while allows this, a feeding frenzy atmosphere will not. -- Al

 

[lancer]

once changed I would suspect they will be changes for good. I wonder how it only seems K&C are affected?? this is only really a rhetorical question.
Mitch

I hear that John Jenkins and other China based manufacturers are running into the same problems. -- Al

 

[Phantom Warrior]

I don't know whether there will be a feeding frenzy. Andy didn't say production levels would be 250. For most items, they will probably be 1000+. Sounds like there will be production runs of less than 1000 for expensive AFVs and the 250 series will stay. Some of the 250 series sell fast, but they are a bit less expensive than the big AFVs.

Terry

 

[Rob]

Maybe, yes, maybe no, short term. You first have to find the factory, assess the costs, and have them make samples, all of which does take some time.

Yes whatever the situation we have to get used to it, I think it will help me narrow my collecting vision to get those must have items. I had to learn many years ago I couldn't collect everything and this is just an extension of this really. I know its nothing to do with it really, but I've only to turn my tv news at anytime in the last six weeks to see that my collecting ' problem' is not really a problem in any way shape or form. All that's happened is my favourite producer is retiring older items so it can continue producing superb new items as it does month after month, a policy I'm fully behind:salute::.Compared to Earthquakes,War, Nuclear meltdown....I've not got it too bad!:wink2:^&grin

Rob

 

[lancer]

I don't know whether there will be a feeding frenzy. Andy didn't say production levels would be 250. For most items, they will probably be 1000+. Sounds like there will be production runs of less than 1000 for expensive AFVs and the 250 series will stay. Some of the 250 series sell fast, but they are a bit less expensive than the big AFVs.

Terry

Terry, I think that the number of 1000+ is too generous. In reference to previous production runs of vehicles and figures that were 1000, KC says that they are going to "dramatically reduce" those numbers. Sounds like a cut of at least 50% to me. But I am just guessing from the statement KC posted. -- Al

 

[jazzeum]

once changed I would suspect they will be changes for good. I wonder how it only seems K&C are affected?? this is only really a rhetorical question.
Mitch

I think Britains has a short cycle time on some releases.

 

[Phantom Warrior]

Andy's announcement came as no surprise. It's been clear for many months that something had to happen and with K&C monthly production probably equal to FL, Fig, JJ, CS and Britains combined, K&C would be where the change took place. I not only expect more retirements each month than before, but shorter lifetimes for models to stay available, but on the other side, fewer new items each month. I don't look at this as a bad thing but commend the changes as a way to keep K&C healthy and by extension, keep the TS industry healthy. The change will hurt completionists and there will certainly be more speculation in the new environment.

And a second point is the dealer network. With fewer new offerings and shorter lifecycles, dealers won't be having large amounts of unsold inventory sitting around. I also expect there will be fewer dealers with marginal volume sellers losing their status which will also contribute to the health of the more active dealers.

Terry