Hi Guys,
Has been an interesting few days of comments on price so I thought I would make mine (make a coffee now !). I now count 5 threads on the Arnhem figure prices. Whilst I do not agree with every point I thought CFM's post was a good one which is why I am posting in this thread.
Below is part of Stephen Chongs report from Andy's comments from the recent West Coast show :
"Unfortunately, costs keep increasing. Despite having more than 1.4 billion people, there is actually a labor shortage in China with few young people willing to do low tech jobs like painting figures. K&C will be celebrating its 30th anniversary, having started in 1983. It started producing in China in 1988. Around that time, a painter earned US$200 to $300 per month and factories had 400 or more painters working double shifts. Now, K&C's biggest factory only has 50 to 60 painters each earning 3 to 4 times more. There has also been drastic increases in raw material and transportation costs (compare cost of gasoline in 1980's to now. But there has also been an increase in quality and variety coupled with customers becoming more demanding".
There were some other interesting comments in that talk that may be more relevant now (worth a look).
Chris Tay just mentioned China costs and I think he would have more knowledge of this than most. I know from talking to my TS suppliers they are constantly talking about changing factories, looking for new ones etc. Obviously they are looking for better value / quality and trying to keep prices down. Some may recall K&C rejecting production runs in the past (ie. some MK's and the larger landing craft). I hope he wont mind me saying but two years ago John Jenkins told me he had personally stood outside a factory with a banner enticing workers with higher pay. As I understand it good painters are highly sought after.
Mid last year I visited Hong Kong and I kept a newspaper supplement on manufacturing in China. There were numerous examples of businessmen running big factories complaining about constant increases in wages and regulations. One I remember was a major baseball cap producer and the business was moving to Bangladesh to escape the constant rises (good luck with the floods and cyclones). Another who had had 10,000 workers in his early years was lamenting the fact he was no longer making good profit and was pretty much running the factory to pay the staff. The common thread was the good old days of cheap China labour had gone. As Chris says Chinese worker pay and benefits are rising far faster than in the western world of the TS collector.
As a K&C dealer my business has a significant interest in K&C making good decisions in such matters as selection/series, figure poses and pricing etc. I remember thinking what was Andy doing when he brought out the Jesus series but some of those figures went on to become very good sellers. My business is "cushioned" by the fact I sell other brands (ie. CS, TG, JJ and BR) and have another totally different side of my business (medals and framing).
My reaction to the price jump of Arnhem and the Indians was also one of surprise as it was more of a rise than normal. I can appreciate the price rises are not welcome by collectors but take a moment to consider it from the other side. For the collector this is a luxury hobby so really the choice is about whether or not you will buy a metal soldier that may have crossed your price level. For Andy/K&C this is a business that affects his livelihood and those of his staff and indirectly the factories and his dealers. He has a lot more riding on this than any collector so I think it safe to assume he gave considerable thought to this pricing change knowing that it would not be popular.
Having dealt with Andy for over 10 years and had many conversations with him I know price has always been an important consideration. From my knowledge he works on a certain percentage on top of the factory price. Whether or not the Arnhem and Indian figures are a significant change in detail I cant comment on at this stage but I am sure the percentage is the same. However here is another way to compare the Armhem figures. Try to imagine going into a TS shop for the first time (ie. never seen a TS before) and you see the Arnhem figures and the two new US Medic sets (2 for $85 so $42.50 each). I think it is clear that the Arnhem figures would require more painting time and hence cost more. On that comparison the $55 is not unreasonable if compared to the Medics.
Some other points to consider. The variety of product now across various brands, historical periods and price points is huge (and lets not forget the UK cottage guys:wink2
. I would like to think I have a good variety of stock across the brands I stock but I think, as a dealer, there is too much variety available. Whilst this may seem good for the collector it may not be as good as you think. Whilst my view might be slightly different to a USA dealer I am sure all dealers are finding there are some series that hardly sell at all. In some cases there have been items I simply did not get in and had no orders for. For a brand that means their successful series has to cover any series that does not sell as expected. A knock on effect of this is that brands are doing smaller production runs (this is quite obvious) and I believe factories would charge more per figure the smaller the runs get.
There have been a few posts I could comment on individually but will cover them here.
a) Gary, who said "who 2 or 3 years ago spent between $400 & $500 a month on K&C to a person that spends about $200 a year (My note : prior to P announcement). Reading all this about the "P" line of figures has just about sealed the deal." Would I be correct in saying you retired within the last two to three years ? If so I think this might explain why you no longer spend such large amounts.
b) Scott (Arnhem mad) who said he is 19 and " how does one expect the hobby to thrive among young people when they'd need to save up for 5 years before buying one figure?". My apologies Scott as young collectors are to be encouraged but I think your comment is a slight exaggeration based on your previous postings about your purchases. I know you do not like the price rises but the fact you can collect such items at 19 suggests to me you have more excess funds than the great majority of 19 year olds. I doubt there are many on this forum who were collecting metal figures at 19.
c) Mitch, there seem to be a few members down here (not quite 37^&grin) who are quite keen to see examples of your expert figure painting.
I know Andy will know and have met quite a few forum members who are now making negative comments about pricing and say they will not buy the figures etc. He will not find it much fun to read them. However I am pretty sure Andy is doing what he thinks is in the best interests of his business and the continued employment of his staff. No doubt some will jump on this comment as somehow being insensitive to their requirement that Andy price his products to their particular budget. The reality is for Andy it is a serious business whereas for collectors it is a hobby. He has more to lose than anybody if he has got it wrong.
As a dealer I hope Andy has got it right and time will tell.
Regards
Brett