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Is Walthers in financial trouble?

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Posted by Bob Schuknecht on Wednesday, July 20, 2016 7:55 AM

maxman
 
rrebell
the white pages are long gone.

 

Actually you can request a hard copy and they will send it to you.

 

My local phone company no longer sends Yellow Pages to every customer. Just last week I received a post card in the mail that had to be returned if I want a copy of the Yellow Pages.

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Posted by jeffhergert on Tuesday, July 19, 2016 4:36 AM

rrebell
 
maxman

 

 
rrebell
the white pages are long gone.

 

Actually you can request a hard copy and they will send it to you.

 

 

 

No you can't, it dosn't exist in usefull form anymore, very few landlines. My mother has one though, shes 95. Most everyone where I live has a cell phone or phones only.

 

 

I receive two or three phone directories a year. Without requesting them and they have both white and yellow pages.  There are still a lot of land lines out there.  I have one, but since they went to internet based service it's not as reliable as it used to be.

Jeff

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Posted by Geared Steam on Monday, July 18, 2016 1:35 PM

BRAKIE

 Geared Steam

Yep, Walthers purchased the Caboose Hobbies location, and are moving the entire company to Colorado. The basically purchased the entire block and will be constructing a full size kit on the site that will serve as the new hq.

 

What kit did Walthers use? MischiefWhistling

 

Rumor (or rumour for everyone north o' the border) is the power house kit. Smile, Wink & Grin

"The true sign of intelligence is not knowledge but imagination."-Albert Einstein

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Posted by dknelson on Monday, July 18, 2016 9:40 AM

Geared Steam

Yep, Walthers purchased the Caboose Hobbies location, and are moving the entire company to Colorado. The basically purchased the entire block and will be constructing a full size kit on the site that will serve as the new hq.

Caboose Hobbies is currently having a moving sale and will be moving to a warehouse outside of Denver.

Atlas is currently purchasing Bowser and will move the manufacturing overseas, and Lionel has purchased Kadee.

Whistling

Uh oh, somebody's been sipping the cooking sherry while visiting the Forums again.

Dave Nelson

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Posted by BRAKIE on Monday, July 18, 2016 8:56 AM

Geared Steam
Yep, Walthers purchased the Caboose Hobbies location, and are moving the entire company to Colorado. The basically purchased the entire block and will be constructing a full size kit on the site that will serve as the new hq.

What kit did Walthers use? MischiefWhistling

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by BRAKIE on Monday, July 18, 2016 8:53 AM

Sir Madog
Some are able to foresee the future, without looking into a crystal ball, and others have the ability to hear the grass grow.

Ulrich,Living in the US it doesn't take much to see the hand writing on the wall for changes  before it happens.. It  always starts slow and in the smaller cities. Look at the large piles of BB kits still on the tables at train shows.That started in the 90s at hobby shops-same kits no new cars from Athearn. Atlas,P2K,Branch Line,Red Caboose and IM was starting to take over the freight car market.

 

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by JEREMY CENTANNI on Sunday, July 17, 2016 11:05 PM

Geared Steam

Yep, Walthers purchased the Caboose Hobbies location, and are moving the entire company to Colorado. The basically purchased the entire block and will be constructing a full size kit on the site that will serve as the new hq.

Whistling

 

All right!  Another one bought, I'm just waiting for the products to be released again under the Caboose Hobbies/Walthers banner with all prices having a 50% to 100% price increaseBig Smile

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Posted by Geared Steam on Sunday, July 17, 2016 10:12 PM

Yep, Walthers purchased the Caboose Hobbies location, and are moving the entire company to Colorado. The basically purchased the entire block and will be constructing a full size kit on the site that will serve as the new hq.

Caboose Hobbies is currently having a moving sale and will be moving to a warehouse outside of Denver.

Atlas is currently purchasing Bowser and will move the manufacturing overseas, and Lionel has purchased Kadee.

Whistling

"The true sign of intelligence is not knowledge but imagination."-Albert Einstein

http://gearedsteam.blogspot.com/

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Posted by dinwitty on Saturday, July 16, 2016 6:08 PM
hobo9941 wrote "Half the stuff in that book isn't even available." I put an order in regardless and it shows up in time anyways.
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Posted by Goodtiming on Saturday, July 16, 2016 3:45 PM
At the prices Walthers charges they could never go bankrupt.
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Posted by Bayfield Transfer Railway on Saturday, July 16, 2016 12:47 PM

* applause *

And, of course, the Tony's Train Exchange price on a 1 amp ESU Loksound with 6 functions and digitally recorded sound is less in absolute dollars than the price of a Soundtraxx diesel decoder with 2 functions in 1999, but never mind that...

 

Disclaimer:  This post may contain humor, sarcasm, and/or flatulence.

Michael Mornard

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Posted by mlehman on Saturday, July 16, 2016 10:07 AM

Michael M. hit it on the head with his cite. I do prefer the term "discretionary purchase" vs "luxury good." Either way, model trains are not a high volume/low profit item nor are they something anyone absolutely needs in life. Buying them is what you should do with resources excess to your cost of living.

JEREMY CENTANNI
I feel the same way. It's not economics, it's greed...SNIP ...their business practices are suspect to anyone who is into any other hobbies.

No, I don't think so. Their pricing reflects the cost of current production, not greed. And model railroading isn't like other hobbies. Much of what is needed has to be produced specifically for our hobby, not repackaged or repurposed from common stock that is mass produced. We want not only a Model XYZ item, but Model XYZ in multiple paint schemes specific to different railroads and thus requiring different SKUs. Then with many nowadays, we want specific details also applied. Add in consumer interest in getting evermore detail in each run, assuming they do make multiple runs, and there's more pressure on the cost side. People want more, more, more and then refuse to believe that such demands inevitably result in higher costs and thus a higher MSRP. Some roads have a high demand and others have substantially lower -- even in the same run of the same basic item -- but consumers expect them to cost the same. And most people want things RTR these days, rather than building it yourself (remember when that was part of the hobby? I still do...), which inevitably makes the cost and pricing of new items always go up as labor costs almost always do...

If all that bothers you, then maybe you're in the WRONG hobby? Not because it's not the World's Greatest Hobby, but because you're so tight about it you still think you can have all of the above and it won't cost you a penny more than the alternative...Confused

But if you're slightly less picky, there is a HUGE used market where you can get lots of barely used stuff at substantial discount. You pay for the privilege of lack of patience and wanting to be the first to unbox the latest thing to hit the market. For instance, do you buy a new car every year or are you like the majority of us who either buy used or buy new and make it last a decade or more? Relax and wait a year or so and most things are available at what you might consider a "non-greedy" price. As maxman noted, this is also why it's termed a "reference book" because it's a guide to recent production that may no longer be available from Walthers, but which you might still find in stock at a hobby shop or on the used market.

Mike Lehman

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Posted by BroadwayLion on Saturday, July 16, 2016 10:05 AM

The Catalog Prices are Suggested Retail Price. The are intentionally high so that the dealer can get it for you for less than retail and still make a profit. Perhaps the dealer pays les than half the catalog price (depending on his volume, I am sure), he can then five his favored customers a good discount and still make good money on the deal.

I was never a high volume customer at my LHS now long closed, and buy even less from Trainworld (who by the way still hasn't shipped my Pre-Ordered Subway Trains). Gotta build stuff as best as I can from scratch. It will have to do.

 

ROAR

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Here there be cats.                                LIONS with CAMERAS

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Posted by maxman on Saturday, July 16, 2016 10:01 AM

Sir Madog

 Paul D

when in fact Walthers calls it a Reference Book, not a catalog

 

Now that´s splitting the hair four times!

What good is a reference to something no longer available? Whatever Walthers calls their catalog, people expect the items listed to be available.

 

 
The fact that something is no longer manufactured does not mean that it is no longer available.  Yes, I use the book as a reference, because I may remember something that I now need but no longer remember the exact description, or to look for something that fits my need that I may not have been aware was one time available in the first place.
 
Gives me somethings to search for at train shows.
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Posted by Anonymous on Saturday, July 16, 2016 9:43 AM

Paul D
when in fact Walthers calls it a Reference Book, not a catalog

Now that´s splitting the hair four times!

What good is a reference to something no longer available? Whatever Walthers calls their catalog, people expect the items listed to be available.

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Posted by Paul D on Saturday, July 16, 2016 9:31 AM

Some of the misgivings about product availability expressed here may grow out of the extensive use of the word catalog, which some may interpret as 'Stock List', when in fact Walthers calls it a Reference Book, not a catalog. Walthers appears to me to make some effort to indicate 'unavailable', 'Sold Out', or 'Discontinued when sold out'.

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Posted by Anonymous on Saturday, July 16, 2016 3:31 AM

I am always thrilled by the different skills and abilities of some of the members of this community!

Some are able to foresee the future, without looking into a crystal ball, and others have the ability to hear the grass grow.

I don´t think that Walthers is in financial trouble, yet the decision to merge the two catalogs is purely an economic necessity. There is a lot of $$$ involved in producing a big catalog and even with the steep price of $15, it is doubtful that Walthers will recoup the cost of making it. Less and less people go through the trouble of buying a catalog in a time, when more up to date information is available online. Furthermore, the limited run/batch production policy makes the catalog outdated the moment it leaves the press.

Video killed the radio star and the Internet the paper catalog. Walthers is just following a route other mail order business have gone down already a few years ago. So enjoy the catalog as long as you can obtain a copy and go back to model railroading!

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Posted by JEREMY CENTANNI on Friday, July 15, 2016 11:49 PM

TheWizard

 

 
ATSFGuy
So what is a fair and reasonable price for Walthers to sell Locomotives, Passenger Cars, Freight Cars, and Track at then? I'm curious

 

Well the Amfleet cars are currently selling for $50, lighted. They did a "limited run" 6 car set for $720, or $120 a car.

Given that they can sell them for $50/car, $60 would be acceptable, but $120 is just crazy expensive.

Their caboose prices are equally as nuts. The new bay window mainline cabooses are over $40 a piece, with shipping. Given the lack of detail, I would pay $20, maybe.

 

 I feel the same way.  It's not economics, it's greed.  Cost of Proto 2000 stuff skyrocketed after they bought them, same thing with the vehicle manufacturer they bought, prices roughly doubled there as well. 

I don't knock a lot of their products in general, but their business practices are suspect to anyone who is into any other hobbies. 

I do agree with you on the $50-60 range for lighted cars.  Before they bought P2K they made them for less than that MSRP.   Now if you want the light and the close coupling on Mainline cars it will cost you roughly another $32-35.........

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Posted by Bayfield Transfer Railway on Friday, July 15, 2016 11:26 PM

ATSFGuy
So what is a fair and reasonable price for Walthers to sell Locomotives, Passenger Cars, Freight Cars, and Track at then? I'm curious
 

 
The same as any luxury good; increase price until the total revenue curve flattens.

Luxury goods:
Products which are not necessary but which tend to make life more pleasant for the consumer.   http://www.businessdictionary.com/

Disclaimer:  This post may contain humor, sarcasm, and/or flatulence.

Michael Mornard

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Posted by TheWizard on Friday, July 15, 2016 7:50 PM

ATSFGuy
So what is a fair and reasonable price for Walthers to sell Locomotives, Passenger Cars, Freight Cars, and Track at then? I'm curious

Well the Amfleet cars are currently selling for $50, lighted. They did a "limited run" 6 car set for $720, or $120 a car.

Given that they can sell them for $50/car, $60 would be acceptable, but $120 is just crazy expensive.

Their caboose prices are equally as nuts. The new bay window mainline cabooses are over $40 a piece, with shipping. Given the lack of detail, I would pay $20, maybe.

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Posted by rrebell on Friday, July 15, 2016 7:22 PM

maxman

 

 
rrebell
the white pages are long gone.

 

Actually you can request a hard copy and they will send it to you.

 

No you can't, it dosn't exist in usefull form anymore, very few landlines. My mother has one though, shes 95. Most everyone where I live has a cell phone or phones only.

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Posted by dknelson on Friday, July 15, 2016 6:48 PM

G Paine

Rolling scales into one catalog is probaly cheaper than making 2 or 3 (as they used to do). There is a certain amount of duplication of support information in both catalogs, but they still have to be designed and laid out. also 2 sets of marketing and databse listings to be set uip and programmed - dealers have to order case lots, so the programming has to automatically adjust any quantity orderd to a case lot size. Lots of stuff like that. 

According to the "insider" I talked to, you hit the nail on the head: much of the catalog (HO or N/Z) is paint, adhesives, electronics, scenery, raw materials such as wood, plastic, screws and the like, and the railroad collectibles type stuff) and that is pure duplication for both.  As a reason, it makes sense.  I am sure Walthers has suffered with the loss of many hobby shops and has done its share of belt tightening, which is hardly the same as being in trouble.  And they no longer can really be said to offer nearly everything that is available (Athearn being merely the most prominent example).  But they offer plenty - as anyone who has toured their warehouse can attest.

Dave Nelson

 

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Posted by farrellaa on Friday, July 15, 2016 5:36 PM

mlehman
I think we're lucky to have a paper catalog at all in this day and age. But not because I don't think it's worthwhile. It's a LOT easier to browse on paper than it is online. And you're more likely to stumble on something you never would've thought to search for, but which might be useful.

I have to agree with this analogy of the catalog and also as Lion mentioned this is 'SOLD' to the public (not given away as the earlier Sears and JCPenney ones were) so they are getting their money back, even if the price goes up to  $18 or $20, people will still buy it. I still have 2 or 3 older ones that I still use for reference and will buy the new ones, every 2-4 years. This is all a matter of personal preference when it comes to having a printed 'book' to scan through. I have found many items that I didn't know existed until I saw them in the Walther's book. Well, that's my two cents on this.

   -Bob

PS: I rarely order from Walther's directly, but email my order to my LHS and they order it from Walther's; this way I get what I want, don't pay shipping and the LHS makes their money and stays in business (I hope?).

Life is what happens while you are making other plans!

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Posted by cedarwoodron on Friday, July 15, 2016 3:01 PM

Someone above suggested that the Walthers catalog should come out on disc- an excellent idea for a moment, notwithstanding that the same issue of dated information would occur with a disc, as with a printed catalog. Of course, colleges and universities have printed their catalogs on cd/DVD for over 10 years, at least. The info there can maintain its currency with just minor edits yearly and is easier to navigate than a website. With a catalog, you could easily flip thru it with greater speed than using an online search tool- the Walthers website drives me nuts when I try to search it.

But eventually their print catalog will be eliminated, due to costs of both production and distribution, in favor of online access only. Then, those old paper catalogs will become collectors items- or food for silverfish (the way many of us who have hung on to our old paper MR copies have discovered).

How many of us still have paper phone books around these days?

Cedarwoodron

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Posted by G Paine on Friday, July 15, 2016 12:46 PM

Rolling scales into one catalog is probaly cheaper than making 2 or 3 (as they used to do). There is a certain amount of duplication of support information in both catalogs, but they still have to be designed and laid out. also 2 sets of marketing and databse listings to be set uip and programmed - dealers have to order case lots, so the programming has to automatically adjust any quantity orderd to a case lot size. Lots of stuff like that.

George In Midcoast Maine, 'bout halfway up the Rockland branch 

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Posted by ATSFGuy on Friday, July 15, 2016 11:45 AM

Around 2010/2011 I noticed the catalog had shrunk a little bit and looked smaller.

Althought walthers had updated thier website, I still tlike the old one better and they shoul return the "discontinued search page". I think that will help a lot of modelers who are lokking for an item that was released years ago or cannot be found online.  The Catalog is still useful though.

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Posted by BroadwayLion on Friday, July 15, 2016 11:18 AM

They *SELL* the Catalog, and while I have not bought one in ages upon ages, that is more a function of getting permision from the Abbot than it is just ploping down my $15.00 and going home with a catalog.

I LIKE the catalog better than the website, you cannot browse a website the same way you can brouse a catalog. You can not put a website next to the toilet and reat is at your leasure.

LION thinks that the catalog should MORPH into a maintenance manual. Show the inner details of the various locomotives, how to trouble shoot them, how to get spare parts. But I suppose it is up to each manfacturer to produce such a tome.

The other reason why I do not use either the catalog or a website is because I cannot buy the stuff in there anyway. LION, if him must spend money, wants to buy SUBWAY TRAINS which are not in the catalog anyway.

ROAR

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Here there be cats.                                LIONS with CAMERAS

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Posted by tstage on Friday, July 15, 2016 11:06 AM

mlehman

I think we're lucky to have a paper catalog at all in this day and age. But not because I don't think it's worthwhile. It's a LOT easier to browse on paper than it is online. And you're more likely to stumble on something you never would've thought to search for, but which might be useful.

And for that very reason I prefer the catalogs for browsing rather than the online websites.

Tom

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Time...It marches on...without ever turning around to see if anyone is even keeping in step.

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Posted by riogrande5761 on Friday, July 15, 2016 11:00 AM

mlehman

Walthers is doing just fine, but this thread is turning into a real trainwreck...

 

It started out as a train wreck by the original title; it was very suggestive of something extreme based on a change in the catelog - which common sense dictates that paper catelogs, magazines etc. are becoming dinosours and outmoded with the interent etc.

Rio Grande.  The Action Road  - Focus 1977-1983

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