[KG_Jag]

Here are a few key points to chew on:

1. A 30% price increase creates sticker shock.

2. Credibility of a company is damaged when they trot out crap like: the 30% price increase is due to the increased price of zinc.

3. Most customers are not willing to pay 30% more for your current models in exchange for your statement (see #2 above) that in the future you will be making much better models.

4. The current price increases of both Corgi and Armour/FM will result in the loss/severe reduction of almost all customers except for avid collectors who still have display space. See marginal utility theory and the the demand side of your supply/demand graph.

5. All of this appears to represent a series of poor business decisions. But what do I know, I only have a BBA in business, albeit from the University of Michigan.

[CLLCTR5]

Originally Posted by KG_Jag

Here are a few key points to chew on:

1. A 30% price increase creates sticker shock.

2. Credibility of a company is damaged when they trot out crap like: the 30% price increase is due to the increased price of zinc.

3. Most customers are not willing to pay 30% more for your current models in exchange for your statement (see #2 above) that in the future you will be making much better models.

4. The current price increases of both Corgi and Armour/FM will result in the loss/severe reduction of almost all customers except for avid collectors who still have display space. See marginal utility theory and the the demand side of your supply/demand graph.

5. All of this appears to represent a series of poor business decisions. But what do I know, I only have a BBA in business, albeit from the University of Michigan.

Interesting points. Wish I could tell you that you are right...so far according to my sales graph you are not...we sold more B-17's the 1st quarter of 2007 than we did the 1st quarter of 2006. A couple of those were the new Nine-O-Nine which has an introductory price of $135.00 (which was a nice gesture by TFM...they did all the new paint schemes at the old prices) but we have been selling B-17's for the new price without missing a beat.

But then again...these are facts...and facts don't always trump BBA's.

Joking Joking Joking!

Anyway there is still a looong way to go to compare past sales with the new price...time will tell. All I know is that it was a needed change and there was no way around it. They will sell fewer, make fewer, and have a look at the bottom line in about one year to see how it all came out in the wash.

[CLLCTR5]

P.S. A decrease in small Armour from $70 to $60 almost always saves the collector $10. Nearly every time. Considering small planes outsell bigger planes (B-17, JU88, B-24) by about 4-to-1...I would say the reasonable concession of giving back $40 as deducted from total sales volume and taking back $40 on the same amount of larger scale aircraft is almost exactly even.

But then I never made it out of high school geometry so I could be wrong here somehwre.

This place has awesome smilies.

[TopHat]

My marginal utility for another FM B-17 or B-24 is maxed out . . . I ain't got no more room!

[CLLCTR5]

Originally Posted by TopHat

My marginal utility for another FM B-17 or B-24 is maxed out . . . I ain't got no more room!

Probably 90% of the customers that I rarely see anymore ran out of room way before they ran out of $.

There's a George Carlin joke in there somewhere.

[TopHat]

That's why ebay is my (wife's) friend . . . a new one comes in, an old one goes out.

But I have the two B-17s and the one B-24 that I really want, so all is cool on the large die cast front. I have reached big-model equilibrium.

[TopHat]

Originally Posted by KG_Jag

...from the University of Michigan.

I wouldn't be so eager to let THAT get out!

[SKUNKY]

Originally Posted by Armour Addict

Sorry, that my english is not always as precise as I want it to be, its only my secondary language.

AA, I have to tell you, if English is only your secondary language, then many of us for whom English is our primary language, should really feel quite embarrassed...

[Armour Addict]

Originally Posted by SKUNKY

AA, I have to tell you, if English is only your secondary language, then many of us for whom English is our primary language, should really feel quite embarrassed...

Gee, thanks for the compliment Skunky!

AA

[KG_Jag]

Originally Posted by TopHat

I wouldn't be so eager to let THAT get out!

Go Blue! Hook 'em Horns!

Almost 35 years ago when I graduated, Michigan had a pretty strong "bidness" school. I hear that it's still not bad.

Some of the most enthusiastic (fanatical?) collectors are on this forum. When you get significant push back from this group, that suggests that there will be a wider problem for the price increasers. Further, the anecdotal evidence concerning the short term business of a single seller is not very meaningful in this analysis. Further, it is certainly balanced by the withdrawal from the market of retailers who formerly carried Armour/FM by such sellers as the Monkey Depot, and the scaling back by others.