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Athearn's (Horizon Hobbie's) Website.

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Posted by riogrande5761 on Friday, November 21, 2014 9:10 AM

Rich

I removed that comment regarding loyalty because it really did not apply to the your post which I was responding to.  Please disregard.  FYI - it was removed before I even saw your reply.

Rio Grande.  The Action Road  - Focus 1977-1983

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Posted by richhotrain on Friday, November 21, 2014 10:20 AM

riogrande5761

Rich

I removed that comment regarding loyalty because it really did not apply to the your post which I was responding to.  Please disregard.  FYI - it was removed before I even saw your reply.

 

Hey, Jim, no problem.  I just wanted to clarify my comment in my initial reply.

Rich

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Posted by BRAKIE on Friday, November 21, 2014 11:24 AM

NP2626
 
BRAKIE
 
NP2626
Who decided to stop Athearn/Roundhouse being listed in the Walthers Book? Athearn/Roundhouse; or, Walthers?

 

None of the above..Horizon ended that deal because Walthers is a distributor competitor.No use sharing a slice of the distribution pie when you're already a distributor that happens to own Athearn..

 

 

Horizon Hobbies IS Athearn!

 

 

No,Athearn is owned by Horizon and they put Athearn in charge of the model railroad items..

That is why Athearn produts was removed from Horizon's web page and Athearn has its on web page now.

Horizon also owns R/C manufaturers.

Larry

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Posted by NP2626 on Friday, November 21, 2014 2:50 PM

BRAKIE
 
NP2626
 
BRAKIE
 
NP2626
Who decided to stop Athearn/Roundhouse being listed in the Walthers Book? Athearn/Roundhouse; or, Walthers?

 

None of the above..Horizon ended that deal because Walthers is a distributor competitor.No use sharing a slice of the distribution pie when you're already a distributor that happens to own Athearn..

 

 

Horizon Hobbies IS Athearn!

 

 

 

 

No,Athearn is owned by Horizon and they put Athearn in charge of the model railroad items..

That is why Athearn produts was removed from Horizon's web page and Athearn has its on web page now.

Horizon also owns R/C manufaturers.

 

Horizon owns Athearn.  If you go to Horizon, there is a link to Athearn.  If you go to Athearn, there is a link to Horizon.  I can believe that one divisoin  of company can maybe operate autonomously from the other, in small things; however; Horizon is the parent company and the choice to not have Athearn and Roundhouse in the Walthers book was decided by Horizon, as like you said, horizon is a hobby distributor just like Walthers is.    

BRAKIE, I think we should be on the same page now, if not, let’s move on anyway!

 

NP 2626 "Northern Pacific, really terrific"

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Posted by ATLANTIC CENTRAL on Friday, November 21, 2014 5:00 PM

Athearn products are not sold by ANY other distributors any more - as a dealer you can only buy ATHEARN directly from Horizon. 

Walthers is both a manufacturer and distributor, but Horizon decided to use single point distribution when they bought ATHEARN. If you ask most dealers, they will tell you that is a good thing and likely saved ATHEARN.

It surely lowered costs and more importantly helped small dealers since everyone selling Athearn must pay the same wholesale price from Horizon.

In the old days, some big dealers bought Athearn direct and could offer big discounts, others had to buy from distributors and could not afford to discount much.

Now dealers of all sizes are on a nearly equal pricing structure.

Once Walthers bought Train Minature in the 80's and got into the plastic rolling stock business, they never gave Athearn good representation in the Catalog anyway.

Single point distribution is the way of the future - and it might just save this industry.

Sheldon

    

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Posted by NP2626 on Saturday, November 22, 2014 7:36 AM

ATLANTIC CENTRAL

Single point distribution is the way of the future - and it might just save this industry.

Sheldon

 

 

So, in other words, distribution companies who are willing to invest in quantity and carry inventory, are not offered any better deal, than those who would buy by ones and twos?  Sounds very good for the manufacturer and small distribution companies, and not too good for the larger distributors and end user/customer (you and me).

I guess everything I learned in my 31 years in business for myself is now totally superseded by some fuzzy new American ways of thinking and running businesses!  

If this is better, I guess I prefer worser!

 

NP 2626 "Northern Pacific, really terrific"

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Posted by richhotrain on Saturday, November 22, 2014 8:12 AM

ATLANTIC CENTRAL

Horizon decided to use single point distribution when they bought ATHEARN. If you ask most dealers, they will tell you that is a good thing and likely saved ATHEARN.

It surely lowered costs and more importantly helped small dealers since everyone selling Athearn must pay the same wholesale price from Horizon.

In the old days, some big dealers bought Athearn direct and could offer big discounts, others had to buy from distributors and could not afford to discount much.

Now dealers of all sizes are on a nearly equal pricing structure.

That may be true in terms of dealers of all sizes being on a nearly equal pricing structure when purchasing from Horizon, since everyone selling Athearn must pay the same wholesale price from Horizon.

But, big dealers can, and still do, sell to hobbyists at lower prices than do smaller dealers.

Rich

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Posted by rdgk1se3019 on Saturday, November 22, 2014 10:09 AM

Three pages of useless CRAP. Ick!Dead

 

Just because someone said that a website was junk. Dunce

 

What a waste of perfectly good electron`s Lightning

Dennis Blank Jr.

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Posted by NP2626 on Saturday, November 22, 2014 10:23 AM

Wow and some think I get up from the wrong side of the bed!

NP 2626 "Northern Pacific, really terrific"

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Posted by rdgk1se3019 on Saturday, November 22, 2014 10:42 AM

NP2626

Wow and some think I get up from the wrong side of the bed!

 

It`s not you......it`s all the other responses that had nothing to do with your original post.

Dennis Blank Jr.

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Posted by richhotrain on Saturday, November 22, 2014 12:14 PM

rdgk1se3019

Three pages of useless CRAP. Ick!Dead

 

Just because someone said that a website was junk. Dunce

 

What a waste of perfectly good electron`s Lightning

 

Wouldn't that include your reply as well?

Alton Junction

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Posted by IRONROOSTER on Saturday, November 22, 2014 6:54 PM

rdgk1se3019

Three pages of useless CRAP. Ick!Dead

 

Just because someone said that a website was junk. Dunce

 

What a waste of perfectly good electron`s Lightning

 

You could have quit reading on page 1.Whistling

Paul

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Posted by ATLANTIC CENTRAL on Saturday, November 22, 2014 9:03 PM

richhotrain

 

 
ATLANTIC CENTRAL

Horizon decided to use single point distribution when they bought ATHEARN. If you ask most dealers, they will tell you that is a good thing and likely saved ATHEARN.

It surely lowered costs and more importantly helped small dealers since everyone selling Athearn must pay the same wholesale price from Horizon.

In the old days, some big dealers bought Athearn direct and could offer big discounts, others had to buy from distributors and could not afford to discount much.

Now dealers of all sizes are on a nearly equal pricing structure.

 

 

That may be true in terms of dealers of all sizes being on a nearly equal pricing structure when purchasing from Horizon, since everyone selling Athearn must pay the same wholesale price from Horizon.

 

But, big dealers can, and still do, sell to hobbyists at lower prices than do smaller dealers.

Rich

 

Rich, If you follow the prices of Athearn closely, you will see that the differences between the "Big Boys" and some of the better small or mid size dealers is very small.

Higher volume dealers do get some extra discounts, but those discounts are now single digit percentages, not the 20-30% difference under the old distribution system.

And we know that any high volume business may be willing to work on a slightly smaller margin, especially on a product line of high interest/volume. 

NP2626 - what is wrong with a manufacturer also being the sole distributor of their product? Lot of products go directly from the manufacturers to the dealers without "distributors". It is not a new idea - Electrolux, Kirby, Walthers - that's right, Walthers. 

Back in the day, when I ran a train department in a hobby shop, and we bought Athearn from four different distributors, you could only buy the products Walthers manufactured directly from them - but you could buy everyone elses product from them........

Through out the history of this hobby, nearly every small startup began with single point distribution, selling directly to the hobby shops, or the public, until they were big enough to need/want distributors and until the distributors wanted them.

Then, especially in the 70's and 80's, Walthers started buying up lots of small companies and bringing their products under their manufacture and control. some have since been sold off by Walthers - Ulrich die cast trucks comes to mind.

I understand your frustration with not knowing what is "available" - I share that frustration - but it is the way of the future.

The internet, modern transportation networks and modern warehousing methods, make single point distribution very practical and effective - Athearn develops it, China makes it, Horizon ships it to the dealers - large or small, the consumer buys it.

It means it is less likely that the last one of a piece of rolling stock that you want will be sitting in a distributors warehouse on the wrong side of the country, that your dealer would never know about let alone order from.

It also means all the product is either on the shelf at Horizon or on the shelf of a retailer - or it has been sold. That just seems better for the consumer, and likely better for the dealers too.

My local hobby shop, a very small operation, sells me Athearn at prices very similar to Train World, and says he makes a fair markup at that price.

I regularly give him a list of Athearn and just say "order these".

My lists are based on Horizon in stock info or expected delivery dates of new products. He usually gets most everything I order.

Sheldon

    

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Posted by big daydreamer on Sunday, November 23, 2014 12:25 PM

ATLANTIC CENTRAL summed things up nicely.  My only peeve is that the 'Show Retired Items' option is off by default so I only see upcoming or in stock models, but that is not a big issue.

Recently Athearn has been doing a nice job with product information.  Most models have high quality pictures, a good list of features/details and also have approximate eras listed.  I can't say the same for some other manufacturers.

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Posted by Paul3 on Sunday, November 23, 2014 9:41 PM

Sheldon,
You left one one significant negative factor from the single point distributor idea: every LHS now has to maintain multiple accounts in order to fully stock their store.

No big deal?  Heh.  It might be if it wasn't for the monthly minimum orders to the tune of several thousand dollars.  Before, one could maintain that minimum because a dealer bought all their stock from one distributor (Walthers, for example).  But now with Horizon being exclusive with Athearn, and Walthers being exclusive for their products, it means that an LHS has to maintain at least two monthly minimums.  This proves impossible for a lot of shops, and they have to drop one or the other.  I don't see this as a positive, and I doubt you can find any dealers who prefer it that way.

What saved this industry was limited runs, but few want to admit that.

Dennis,
If it was all useless, then why'd you post here?  Why don't you start a useful thread instead of complaining about this one?

Paul A. Cutler III

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Posted by ATLANTIC CENTRAL on Sunday, November 23, 2014 10:01 PM

Paul,

My local dealer says Horizon has no monthly minimums? He is very small and keeps virtually no Athearn in stock - he does order a fair amount for several customers including myself. He does not order much of anything other than Athearn from Horizon.

When I ran a train department in the 80's, not one of our suppliers had monthly minimums - including Walthers.

They did have minimum order sizes for free shipping.

They did have minimum order sizes for extra discounts, special extended billing, etc.

Some did have minimum first orders for new accounts, which generally required a letter of credit from the bank.

But I have never heard of a distributor having a "monthly minumum" to do business with them.

We had accounts with a dozen or more suppliers, but mainly used four, three local to this region. 

Anyone trying to run a shop today dealing with only one or two distributors simply does not have a shot - how do you get products not stocked by that one source?

Again Walthers never sold their products through other distributors?

In this current market, I don't see how anyone can make any money buying from distributors anyway - other than Walthers and Horizon.

Bachmann will sell direct to most anyone, Intermountain is now like Walthers, a combo manufaturer/distributor, as is Bowser, and ConCor, and many others.

As I said above, your volume may effect getting the lowest price, but it does not effect being able to buy at some basic wholesale price level.

Sheldon

 

    

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Posted by NP2626 on Monday, November 24, 2014 7:10 AM

ATLANTIC CENTRAL
NP2626 - what is wrong with a manufacturer also being the sole distributor of their product? Lot of products go directly from the manufacturers to the dealers without "distributors". It is not a new idea - Electrolux, Kirby, Walthers - that's right, Walthers. 

Sheldon

 

Sheldon, I don't see anything wrong with the above.  However, buying in quantity and expecting a better price for doing so, has been as much an American ideal as baseball, hot dogs and apple pie!  The right to not take part of this America belief is also a right of American companies.  Competition being what it is, I suspect not allowing discounts to distributors would cut down on overall sales!  However, as I have said, this is Horizon’s choice and one of the reasons I am not overly impressed with Horizon’s way of doing business!   However, you are absolutely correct, it is their right.  

NP 2626 "Northern Pacific, really terrific"

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Posted by riogrande5761 on Tuesday, November 25, 2014 8:29 AM

NP2626
ATLANTIC CENTRAL

Single point distribution is the way of the future - and it might just save this industry.

Sheldon 

Sounds very good for the manufacturer and small distribution companies, and not too good for the larger distributors and end user/customer (you and me).

If this is better, I guess I prefer worser! 

The thing is, what is good for business in this case is ultimately good for us, the consumer/modeler.  If a business cannot survive with the old model, and go out of business, everyone loses.

Change is hard for folks used to the old ways, but no change would be far worse in the long run.  I'm getting old enough that I too grumble about having to change methods, but I can see the sense when the logic is explained.

The same situation occured when ExactRail dropped selling through distributers and shops and went single source.  People who were used to seeing a model in person before buying were not happy.  In reality, there were relatively few who could do that anyway due to lack of LHS's and ER can give you large hi res photo's so you can see what the models look like almost better than in person.  They have free shipping over $50 and great customer service.  It seems to be ok.

 

Cheers, Jim

Rio Grande.  The Action Road  - Focus 1977-1983

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Posted by NP2626 on Tuesday, November 25, 2014 10:15 AM

My position is: What is good for the customer, is good for the manufacturer, not the otherway around.  This isn't an old way of looking at things, this is the ONLY way of looking at things!

NP 2626 "Northern Pacific, really terrific"

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Posted by riogrande5761 on Wednesday, November 26, 2014 6:52 AM

NP2626

My position is: What is good for the customer, is good for the manufacturer, not the otherway around.

That works for me.  Athearn has been making whats good for me, the customer - and I have been patronizing them in spades.  It looks like many others have too - which is why most of their stock has all sold out - getting back to the original top and coming full circle.

This isn't an old way of looking at things, this is the ONLY way of looking at things!

I guess I better conform if there is only one way.  =(

 

Rio Grande.  The Action Road  - Focus 1977-1983

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Posted by NP2626 on Wednesday, November 26, 2014 6:59 AM

RioGrande5761, It is how business works and has been how business here in the U.S. has worked for a long-long time!

I will admit to everyone I have a bone to pick with Horizon Hobbies that has nothing to do with their owning Athearn/Roundhouse and I will not expound upon here.  Suffice it to say that there are extenuating circumstances which effect my opinion.  Everyone is entitled to an opinion, Right?

All of you who are happy with Athearn, I am glad for you, I really am! 

Beyond what I have just alluded to above, I find little in what they have to offer, that I need/want.  I have not bought an Athearn model since long before the Blue Box disapeared from the hobby shop shelves.

I started this thread from the position of thinking that a website that I would assume a company uses for sales, and leads to stuff that is no longer available, is worthless.  It has been pointed out to me that the website’s purpose is not sales; but, a list of products formerly sold.   I’ve learned something, don’t necessarily agree with it; but, thanks for pointing that out to me.

Opinions are like (What), everyone has one and they all (What)?   Yes, I am from the old school and plan to stay there.  So, it is what it is!

 

NP 2626 "Northern Pacific, really terrific"

Northern Pacific Railway Historical Association:  http://www.nprha.org/

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