NEWS FLASH! Lionel gives money to Gargraves, Ross, Atlas, MTH, and K-Line!!

[brianel027]

Well so far, I agree with the sentiment expressed by Spankybird. I do think it would be nearly impossible for one single company to do absolutely everything. One small beauty of American capitalism is that other companies have the chance to answer the call or step up to the challenge of making either a better quality product or a better priced similar product.

Stop and think about this. The only things than Lionel has really taken the lead on is sound and control. I think that's it. On other issues, such as product selection or quality control or price point, it has taken the presence of other companies that have gained success and a foothold in the market to wake "the Lion" out of a deep sleep.

Correct me if I'm wrong, but I believe Gargraves track came first before Lionel Super 'O' track. Even during the so-called glory days, even the original Marx company was able to compete with Lionel with simple, well engineered, affordable entry level product. Years later, this is where K-Line got it's start... by making 027 track and then later with quality priced entry level trains. Compare K-Line starter sets to Lionel's during the early 1990's... K-Line's the winner. I think it was K-Line's presence in the market that caused Lionel to make the needed improvements to their starter sets.

How about Industrial Rail? Again, a company that made well engineered, above par quality rolling stock at prices Lionel could hardly match. And as a dealer you didn't have to sign your life away to be able to sell Industrial Rail product, not to mention an attractive wholesale price that blew Lionel product out of the picture.

Look at MTH and Railking. I don't doubt there was a element of revenge that prompted Mike to go out on his own. But no one today can ignore the contribution MTH has made to the industry. How many engines has Mike made that no one else has touched? Whether you like Mike Wolf or not, I don't think we'd be seeing some of what we are seeing in the hobby today if it were not for MTH.

Atlas, Weaver, Ross, Sunset (3rd Rail), Williams, American Models, S-Helper have all gained footholds into the market and established customers because they were doing things Lionel was not doing.

In many cases, these other companies have prospered by making product Lionel was not making. In other cases, it was simply a matter of making similar product at a quality level that Lionel had forgotten about, and at a price point Lionel wanted to ignore. Even some of the comments coming out of Lionel show me that Lionel is far far too concerned with 'collectibility" and after-market value rather than making affordable, quality trains.

Yes today, now that there are so many other established competitors, Lionel is putting attention into quality. But I think even the move towards quality is more due to the fact that Lionel product is now made in China where the production costs are substantially less. Since they are saving so much money, they can now afford to put a little more emphasis on quality. In my mind, there is still no excuse for some of the ridiculous suggested list prices on much Lionel product. $60 for a flatcar with a tractor on it is highway robbery. Even the so-called blowout price of $40 for the same car is still out of line.

Spanky is right. Lionel is still living off it's name. Sure, the Lionel name will always have a fond place in all of our hearts. And it is truly the name that stands for 3-rail trains. But when folks see my train layout and see my K-Line trains, they don't know... to them they're still Lionel's. Which is fine with me, because I didn't have to pay Lionel's outlandish prices to get trains which still have the magic of Lionel in them.

If I were at Lionel, I'd be truly embarrassed and ashamed that a company named Williams was making near-exact replicas of our product - with much better quality at a much more reasonable price. If anyone at Lionel is scratching their head wondering why more of us aren't buying Lionel product, all they need do is look in the mirror. For we can now all buy Lionel product without the Lionel name on the box, and get a better made product for much less money. The one thing I think Lionel today is doing right, is that they are offering the best selection of starter sets at the most varied range of prices (and of course quality points).

Oh, a final example... the R-M-T Beep! Seems to be doing real well. And when there was a problem with coupler swing on 027 track, R-M-T actually fixed the problem. I don't have one yet, but I know those that do have them, like them. Again, the quality level and price point of the Beep are at a place Lionel either can't match or even more sadly, just refuses to match.

[Anonymous]

If LIONEL made everything train......

It is called a monopoly (and not the game); LNL would be hit with a charge of monopolizing from the Anti-Trust Division of the Justice Department.

I have often wondered why LNL hasn't been hit already. They control a huge share of the market. They can affect market prices. If they also made everything (think Microsoft) they could be charged with unfair competition and predatory trade practices that lead to monopolizing and that violates both the Sherman Anti-Trust and Clayton Anti-Trust laws. (triple damages plus attorneys fees to the competition as well as being prohibited from being in the market.)

That is why they wisely don’t delve into ALL elements of the train markets.

Alan

[spankybird]

I believe this is another example of Lionel sitting back and trying to live on its name only and not a better product or at a more competitive price.

Is this not what they did from the 60 thru the 90’s

tom

[Anonymous]

That's right. These other companies exist because of Lionel's decidedly stupid business practice to not make every conceivable piece of track.

Do I sound harse? Gee. I hope so. I can't understand why they would let other companies fill a void that they could so easily tap.

If someone can explain this reluctance to fill a need and make even more money than they already do, I'd like to hear from you. To me, it's like Ford building a car in which only Chevy has the parts! [soapbox]