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Prices expected to increase sharply at Atlas

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Posted by R. T. POTEET on Saturday, January 5, 2008 12:26 PM

The Atlas announcement of increased prices doesn't surprise me one iota; unfortunately I suspect that other manufacturers will be making similiar announcements shortly.

I responded to a post of this nature nearly a month ago where everyone was yelling about the price of oil; oil ain't the culprit here although it is going to raise the price of plastic and it will raise the price of transportation. Both these will make this hobby more expensive. Oil briefly spiked at $100.00 a barrel this past week and, unfortunately, it is likely to stay at near that level for the indefinite future; pure and simple it is going to get more expensive to move freight. The economies of both India and Communist China are running full bore and they are daily bidding up the price of commodities; this is quite evident in Arizona where the increase in copper prices to over $2.00 a pound has reopened mines which had been closed for a decade or longer because of low price and low demand. This is great for the local economy but, in case nobody's noticed, it is going to drive the price of brass, nickle silver, wire, etc into the ceiling.

I predicted in my response that the price of this hobby would probably double in the next five years; prices only have to rise 15% per annum to get there. There are those of you out there who will do it but the average Joe Six-pack - that's me - is not going to see his income double in the next five years. We are all going to have to make the choice of either taking our hobby dollars other places or adjusting to the increase i.e. absorbing these increase costs or going on a diet and cinching up our belts. For those of you in a position to do so you can - and will - put pressure on your employers for higher wages; if you are self employed you can - and will - raise the price of your services. Either way, the biggest promoter of inflation, is labor.

From the far, far reaches of the wild, wild west I am: rtpoteet

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Posted by Doug T on Saturday, January 5, 2008 11:17 AM

Actually Atlas has held the line on their pricing in my estimation. In large scale Aristo Craft announced a price increase on their track and switches quite a few months ago. That would include brass and stainless track and switches. After the initial shock of their announcement and the outcry, prices were adjusted down a bit. Other manufacturers have also increased prices in nickel silver track.

The cost of the metals used in making the track is the reason as was stated earlier. The track is made under a contract at a set price for a period of time. When the contarct expires, a new contract is made and pricing will change as the market price on the metals needed has changed.

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Posted by secondhandmodeler on Saturday, January 5, 2008 11:07 AM
It looks like a sales tactic disguised as a customer service message. Sure, they're helping you by informing you of the increase.  They will reap huge benefits by doing you this 'service'.  "Call in the next ten minutes and receive not one, but two wonder widgets."
Corey
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Posted by shawnee on Saturday, January 5, 2008 10:25 AM

Has absolutely nothing to do with manufacture origination...anyone check the price of oil lately?  Petro products are used in model manufacturing.

Now, we institute a "fair tax", ala Huckabee, and the price increases further!  Amen.

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Posted by Autobus Prime on Saturday, January 5, 2008 9:55 AM
 tomikawaTT wrote:

Having taken Economics 101 and Marketing 101, I can appreciate where Atlas is coming from and where they have to go.  I can also appreciate that they were sufficiently up front to give us fair warning.

TTT:

True enough, but then I realize that, adjusted for inflation, Atlas C100 HO NS turnouts cost ~7% more now than they did in 1990, and that those 1990 turnouts were made in the US to much better tolerances than Atlas has now, I suddenly lose that appreciation. 

Here's an idea.  Raise the price just a bit more, take control of production by moving it back here, and start making a consistent and reliable product.  I'd be a lot more willing to pay $15 for excellence than $12 for mediocrity. I wouldn't want them to be another ME or Shinohara.  I just think there is a market for rugged, reliable track components, stuff that works out of the box without too-high frogs or track out of gauge, and that can be taken up and relaid many times without damage to ultrafine detail...like those they made their name on.  They need to return to that.

 

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Posted by Lillen on Saturday, January 5, 2008 9:02 AM

One reason I would guess that this material price increase will hurt Atlas more then the other is because that the material cost can't be much different in between brands, basically the same amount of material is used to produce Shinohara as Atlas. So if the price goes up with say 1+ cents for material in each the increase in cost won't be as much by percentage on the more expensive track. Basically, if Atlas goes to 4$ each and ME goes to 7$ from 6$ that is in favour of ME.

 

Just a thought.

 

Magnus

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Posted by BRAKIE on Saturday, January 5, 2008 8:57 AM

Well,I have enough equipment to last me till my dying day-Wishful thinking that seeing I like a lot of the newer road names.Thumbs Up [tup] I have three club layouts to run trains on so,I don't need to build a home layout.Yeah,right that's why I am looking for a space to build a small ISL.

Well in all truth I will continue to buy what I like or feel I must have at the best discount I can find.

I suppose all the manufacturers will follow suit.Sad [:(]

 

 

Larry

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Posted by luvadj on Saturday, January 5, 2008 8:30 AM
I got mine this morning...I guess it had to come sometime and I'm shocked it hasn't come sooner with the way gas and oil prices have gone.

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Posted by jamnest on Saturday, January 5, 2008 8:15 AM

I use Atlas Code 83 Track.  I buy flex track in the box of 100.  I like to stock up on materials as I no longer have a LHS where I can go pick up the pieces I need.  I have been planning on expanding the layout by developing a large staging yard.  Last week I ordered another box of 100 Code 83 flex track and about a dozen turnouts.  I have a MRR budget so it will be a while before I buy any more locomotives and rolling stock.  I gues this will be motivation to get on with the layout construction.

JIM

Jim, Modeling the Kansas City Southern Lines in HO scale.

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Posted by egmurphy on Saturday, January 5, 2008 7:58 AM
 Teditor wrote:

I'm curious as to why there has been no response to my suggestion to remove the word 'Sharply' from the original heading, also curious why everyone has gone quiet?

Just guessing, but I'd assume it was because you posted in what was the middle of the night on this side of the pond.

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Posted by Teditor on Saturday, January 5, 2008 4:58 AM

I'm curious as to why there has been no response to my suggestion to remove the word 'Sharply' from the original heading, also curious why everyone has gone quiet?

There seemed to be plenty of opinions and knowledgeboxes before my statements.

Not trying to start a flame, just curious why people are afraid of the truth being told and/or only reading what they want to read into something. 

Teditor. 

Teditor

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Posted by Teditor on Saturday, January 5, 2008 2:17 AM

I think in fairness to Atlas, the heading of this topic should have the word Sharply removed, "That was NOT Atlas statement!".

Teditor. 

Teditor

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Posted by Teditor on Saturday, January 5, 2008 2:13 AM
 egmurphy wrote:
 riogrande5761 wrote:
The reality is, everyone is affected by the same materials and shipping cost increases and everyone will be passing them along or rationalizing it somehow.  .....  Atlas just "announced it" formally.  The rest are doing it, just more quietly.  Atlas probably should have just kept quiet and done like everyone else - instead they are getting flack for it in the forums.

Agreed.  Even better on Atlas's part, their announcement comes 4 weeks ahead of the actual increase, giving modelers contemplating a purchase of track materials to order now before the increase.  I wonder how many other manufacturers will do the same?  The announcement says: "Because the increase will not go into effect until February 2, 2008, there is still time to order at the current prices. "

 

Finally, I'd like to point out that despite the title of the thread, the announcement does not say that Atlas prices will sharply increase.  It actually says: "In particular, worldwide commodity prices, especially oil and metals, foreign exchange rates, and traditional labor and benefit costs have taken a sharp rise which will cause us to increase our prices in early 2008." 

Regards

Ed

Amen, honesty is NOT always the best policy, but it wins my vote, try living down under and see how the prices get affected.

Good on you for your honesty Atlas, unfortunately some people 'only read' what they want into something. 

Teditor 

Teditor

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Posted by hobo9941 on Saturday, January 5, 2008 12:48 AM

I suspect the falling dollar is the biggest culprit here.

                                                           Feb 4th, 2008

Dear Customers: Due to market conditions, we are pleased to announce, we will not be raising prices afterall. Thanks for the flood of orders.Big Smile [:D]

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Posted by tomikawaTT on Friday, January 4, 2008 10:49 PM

Having taken Economics 101 and Marketing 101, I can appreciate where Atlas is coming from and where they have to go.  I can also appreciate that they were sufficiently up front to give us fair warning.

This might slow down some of my construction to keep it within budget.  It won't stop me from using Atlas flex.

Chuck (modeling Central Japan in September, 1964)

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Posted by Flashwave on Friday, January 4, 2008 9:37 PM
 egmurphy wrote:

 New Haven I-5 wrote:
 Does this apply to their locomotives??

The announcement above says "The increase will affect all Atlas track, structures, layouts and accessories."  Doesn't mention rolling stock or locomotives.

Good catch, though I doubt we're that lucky. There's probably more metal in an engine than the track.

-Morgan

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Posted by egmurphy on Friday, January 4, 2008 9:36 PM
 riogrande5761 wrote:
The reality is, everyone is affected by the same materials and shipping cost increases and everyone will be passing them along or rationalizing it somehow.  .....  Atlas just "announced it" formally.  The rest are doing it, just more quietly.  Atlas probably should have just kept quiet and done like everyone else - instead they are getting flack for it in the forums.

Agreed.  Even better on Atlas's part, their announcement comes 4 weeks ahead of the actual increase, giving modelers contemplating a purchase of track materials to order now before the increase.  I wonder how many other manufacturers will do the same?  The announcement says: "Because the increase will not go into effect until February 2, 2008, there is still time to order at the current prices. "

 

Finally, I'd like to point out that despite the title of the thread, the announcement does not say that Atlas prices will sharply increase.  It actually says: "In particular, worldwide commodity prices, especially oil and metals, foreign exchange rates, and traditional labor and benefit costs have taken a sharp rise which will cause us to increase our prices in early 2008." 

Regards

Ed

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Posted by egmurphy on Friday, January 4, 2008 9:28 PM

 New Haven I-5 wrote:
 Does this apply to their locomotives??

The announcement above says "The increase will affect all Atlas track, structures, layouts and accessories."  Doesn't mention rolling stock or locomotives.

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Posted by New Haven I-5 on Friday, January 4, 2008 8:52 PM
 Does this apply to their locomotives??

- Luke

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Posted by riogrande5761 on Friday, January 4, 2008 8:39 PM
yeah - its part of life.  I think its just the "shock value" of reading an anouncement by Atlas that kind of got people riled up.  Otherwise it would be business as ususal. It isn't like we don't noticed prices going up.  We just have to decide what we are willing to tolerate.  People freaked out when Tangent offered their nice hoppers RTR at $45 a pop.  I still haven't bought any but "someday" I might get one or to just to have a few.  I think the worst thing about Tangent is you can't get them at a discount like you can Genesis, Intermountain and Atlas.  That takes some of the stink off if you can get 30% off of MSRP.  But Tangent is pay up or get out!  But, I guess people are buying them.  I franlkly have too many standing orders with my pusher right now to justify in impulse buy from Tangent and the like.  Maybe if Athearn will cut out offering a ton of stuff I need, then we'll see.  I've been buying Thrall coal gons like crazy trying to out fit at least 4 fairly long coal trains, and then all these nice tunnel motors coming and now SD45's!  when will it end!

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Posted by IRONROOSTER on Friday, January 4, 2008 8:34 PM
 riogrande5761 wrote:

 accord1959 wrote:
Well the answer is, buy from a cheaper source, the reason most producers of MR equipment are around today is because to survive in todays market you have to produce quality, if Atlas feels it has to increase its already higher prices to compete, then they will be the ones to suffer. There are so many other producers of quality equipment out there that we need not be held hostage by Atlas. 

People act like Atlas is now going down the tubes and everyone else is fine.  The reality is, everyone is affected by the same materials and shipping cost increases and everyone will be passing them along or rationalizing it somehow.  That means KATO, Walthers/P2K, Atlas, Athearn/Genesis etc etc.  I noticed for example that the 89' flat cars walthers offered went up in price between first and second runs.  Atlas just "announced it" formally.  The rest are doing it, just more quietly.  Atlas probably should have just kept quiet and done like everyone else - instead they are getting flack for it in the forums.

...

Unfortunately true. S Helper has raised boxcar and hopper prices this past fall.  I'm sure other products will follow.

Paul 

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Posted by riogrande5761 on Friday, January 4, 2008 8:20 PM

 accord1959 wrote:
Well the answer is, buy from a cheaper source, the reason most producers of MR equipment are around today is because to survive in todays market you have to produce quality, if Atlas feels it has to increase its already higher prices to compete, then they will be the ones to suffer. There are so many other producers of quality equipment out there that we need not be held hostage by Atlas. 

People act like Atlas is now going down the tubes and everyone else is fine.  The reality is, everyone is affected by the same materials and shipping cost increases and everyone will be passing them along or rationalizing it somehow.  That means KATO, Walthers/P2K, Atlas, Athearn/Genesis etc etc.  I noticed for example that the 89' flat cars walthers offered went up in price between first and second runs.  Atlas just "announced it" formally.  The rest are doing it, just more quietly.  Atlas probably should have just kept quiet and done like everyone else - instead they are getting flack for it in the forums.

For those of us who may have a limited funds, it simply means we might be buying 5 freight cars from Atlas every few months rather than 6 or 7.  I don't actually buy alot of Atlas rolling stock because it caters to the east coast RR's but I do buy some.  I'll be buying all four numbers of the new TTAX Trailer Train flats for example.  I just tend to be choosy an limit purchases to items I can identify as typical freight cars on my RR and time period.

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Posted by accord1959 on Friday, January 4, 2008 8:13 PM
Well the answer is, buy from a cheaper source, the reason most producers of MR equipment are around today is because to survive in todays market you have to produce quality, if Atlas feels it has to increase its already higher prices to compete, then they will be the ones to suffer. There are so many other producers of quality equipment out there that we need not be held hostage by Atlas. 
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Posted by riogrande5761 on Friday, January 4, 2008 7:15 PM

 Robby P. wrote:
I bought some flex track today (Atlas) and she said that there prices went up to $3.85 each.  Its crazy how oil, metals, etc has affected this hobby.   Sad [:(]

Boy, that sure makes me glad I saved all my flex track and turnouts from my last basement layout.  It would cost me a small fortune to replace it all what with a lot of code 83 and code 100 flex, a booty of #8 curved Walthers and Shinohara turnouts etc etc.  I'll probably need to buy more track when I plan and build another layout but at least I'll have a huge head start!

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Posted by riogrande5761 on Friday, January 4, 2008 7:13 PM
 Driline wrote:
 riogrande5761 wrote:

 Driline wrote:
Might as well make the stuff in the USA if prices are going to climb that high. Looks like the Chinese have finally outpriced themselves Smile [:)]

I'm thinking the cheap chinese labor still make it more economical despite the crappy US dollar and the increased fuel prices - for now.

Lucky for me (or not) Atlas rarely makes a loco I need - Rio Grande being all EMD during the late 60's to 1990.  I am buying some rolling stock like the new 89' flat cars, which I notice are MSRP $32!!!  But I'll get my usualy 30% off from my pusher.

Man, my pusher only gives me 20% off. Whos you're pusher when I need a train fix?

I use Tom's Trains of Connecticuit - I live in upstate NY.  Tom generally gives about 30% off most stuff.

http://www.tomstrains.com/

He has been pretty good to work with and aside from some train show purchases, I've bought almost everything else via Tom for the past several years.  I usually just send him an email to orders stuff.  I should have a box coming soon with another SD40T-2 (SP) and a couple 5-packs of Athearn RTR Thrall coal gons and Walthers 89' flat cars (KTTX and RTTX).

 

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Posted by Lillen on Friday, January 4, 2008 7:09 PM

 Robby P. wrote:
I bought some flex track today (Atlas) and she said that there prices went up to $3.85 each.  Its crazy how oil, metals, etc has affected this hobby.   Sad [:(]

 

That really effect my planing, when I compare prices, shipping and so on to Sweden this might just be enough to drive me back to Roco or Peco. It simply eats at the margins.

 

Magnus

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Posted by andrechapelon on Friday, January 4, 2008 7:06 PM

 Robby P. wrote:
I bought some flex track today (Atlas) and she said that there prices went up to $3.85 each.  Its crazy how oil, metals, etc has affected this hobby.   Sad [:(]

Nickel silver is an alloy of copper, zinc and nickel. Copper is selling for over $3/lb and nickel is up there at over $12.50/lb. Zinc's at about $1.13/lb.

Andre

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Posted by Robby P. on Friday, January 4, 2008 6:55 PM
I bought some flex track today (Atlas) and she said that there prices went up to $3.85 each.  Its crazy how oil, metals, etc has affected this hobby.   Sad [:(]

 "Rust, whats not to love?"      

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Posted by Driline on Friday, January 4, 2008 6:52 PM
 riogrande5761 wrote:

 Driline wrote:
Might as well make the stuff in the USA if prices are going to climb that high. Looks like the Chinese have finally outpriced themselves Smile [:)]

I'm thinking the cheap chinese labor still make it more economical despite the crappy US dollar and the increased fuel prices - for now.

Lucky for me (or not) Atlas rarely makes a loco I need - Rio Grande being all EMD during the late 60's to 1990.  I am buying some rolling stock like the new 89' flat cars, which I notice are MSRP $32!!!  But I'll get my usualy 30% off from my pusher.

Man, my pusher only gives me 20% off. Whos you're pusher when I need a train fix?

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Posted by HO_Greg on Friday, January 4, 2008 6:45 PM

Might as well make the stuff in the USA if prices are going to climb that high. Looks like the Chinese have finally outpriced themselves Smile [:)]

Chinese currency is pegged to the dollar basically - when we go down they go down and vice-versa.  It's been one of the perennial complaints.  Unfortunately it means that a crappy dollar does NOT mean that manufacturing will come back to the US.

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