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Is Walthers in financial trouble?

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Is Walthers in financial trouble?
Posted by DSteckler on Thursday, July 14, 2016 8:59 PM

I was at my LHS this afternoon and was told the 2017 Walthers catalog will be a combined HO/N/Z rather than a seperate HO catalog, and they've cut the dealer concession (discount).  Has anyone heard this or something to the contrary?

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Posted by gmpullman on Thursday, July 14, 2016 9:07 PM

I would just chalk it up to a rapidly changing business model.

Remember the Sears catalog? RIP, 1993! JC Penney got rid of theirs in 2009? Walthers is probably looking at the cost of that catalog and the numbers of customers that actually buy one versus going strictly on-line which seems to be the trend.

I might mention too, that so many manufacturers—including Walthers—are producing a limited run, pre-order item so it would make no sense to include these items in a catalog that probably has to be edited and produced some 6 to 9 months beforehand, maybe more.

I wouldn't consider it "financial trouble" so much as smarter business practice. Walthers uses customer feedback surveys and I'm sure they base their decisions on the results from those. Personally, I like the "Monthly Flyer" since it is more up-to-date and can feature sale and closeout items which is what I mainly buy from Walthers.

Just my 2¢

Regards, Ed

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Posted by IRONROOSTER on Thursday, July 14, 2016 9:29 PM

Walther's hasn't produced a Large Scale/O/S catalog in a while now.  But there's plenty in those scales on their website.  I suspect that in the near future the HO/N/Z catalog will disappear as well.

These days you have to have a web site, so that becomes the catalog and order mechanism all in one, plus you can update it as often as you want.  The printed catalog locks in for a year and part of it is obsolete before you get it.  And really the Walther's catalog hasn't really had everything since Athearn and MDC were bought by Horizon Hobbies.

I haven't bought a catalog in years.

Paul

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Posted by Water Level Route on Thursday, July 14, 2016 9:30 PM

I was told by a Walthers rep over the phone that they were combining them in celebration of some anniversary for the company or catalogue.  Whether or not that is the whole story will have to be seen.  That fact was enough to persuade me to pre-order one as I was due for a new catalogue anyway, but the opportunity to see what was available in the smaller scales while "reading" before turning in for the night sealed the deal.  Ed's comments sound perfectly reasonable as an explanation as well.

Mike

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Posted by ATSFGuy on Thursday, July 14, 2016 10:29 PM

Could be, with all the post-economy downturn measures.

The catalog combination thing is the exact same thing the railroads did to streamliners, as ridership dwindled, trains were combined to save money or watered down to just 4 cars and later discontinued.

I think walthers is milking the products espescially the passenger car line by charging such a high price for them ($60-$70) vs($20-30). It was never like this in the eary 2000's and it's a shame the company can get away with it, and they pat themselves on the back as modelers flee! LOL

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Posted by BRAKIE on Thursday, July 14, 2016 10:35 PM

DSteckler

I was at my LHS this afternoon and was told the 2017 Walthers catalog will be a combined HO/N/Z rather than a seperate HO catalog, and they've cut the dealer concession (discount).  Has anyone heard this or something to the contrary?

 

Maybe the catalog sales plummeted over the years because  of the on line catalog and manufacturer's web pages and news letters.

Before the computer age I would be concerned but,now all the product information you need is a click away and that includes cars and locomotives that's been out of production for years.

My last Walthers catalog was 2001 the same year I entered the computer age..

Larry

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Posted by mlehman on Thursday, July 14, 2016 10:51 PM

The internet rumor mill seems busy tonight...

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.

Yes, combining the catalogs probably is a concession to the cost of printing them. Consider also that Walthers now only provides full online access to data on other than active, stocked items if you join the Yardmasters club for a modest fee. The two are likely linked.

Whatever you think of it, printing a bunch of paper catalogs is not a sign of financial distress, but Walthers still trying to serve a shrinking base of customers who aren't online.

Mike Lehman

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Posted by JEREMY CENTANNI on Thursday, July 14, 2016 10:58 PM

ATSFGuy

I think walthers is milking the products espescially the passenger car line by charging such a high price for them ($60-$70) vs($20-30). It was never like this in the eary 2000's and it's a shame the company can get away with it, and they pat themselves on the back as modelers flee! LOL

 

You can't say that, everyone will jump in and talk about inflation and the rising cost of doing business in China even while other products from there have not escalated in price like trains have in the same time span.  Or they did something crazy and moved to a new country.

Or the fact that they buy companies and jack up the price on the same products in a new box.

Or they always come in the later stages of a game with an engine, freight car or passenger car and price it $10 below everyone elses.

Or that they keep slowly creeping up the price every time something is "limited released" yet again.

Last but not least, decontenting stuff and selling it at the former price and making upgrades so much you might as well have bought the ultra delux overpriced one to begin with.

I've never ordered directly from Walthers and I honestly never plan to for as long as it can be avoided.  I buy local when I can or get it from elsewhere.

 

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Posted by ATSFGuy on Thursday, July 14, 2016 11:15 PM

I was joking on the last part of my post. Big Smile

I still see this catalog combination thing as Walthers cutting back.....Inferior selection is much worse than no catalog at all.

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

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Posted by hobo9941 on Thursday, July 14, 2016 11:35 PM

Half the stuff in that book isn't even available.

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Posted by ATSFGuy on Thursday, July 14, 2016 11:47 PM

For the Walthers Catalog? If so which year and stuff are you referring to?

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Posted by mlehman on Friday, July 15, 2016 2:23 AM

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

Mike Lehman

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Posted by BRAKIE on Friday, July 15, 2016 5:42 AM

ATSFGuy

For the Walthers Catalog? If so which year and stuff are you referring to?

 

One thing is for sure with today's limited production and availability the Walther's paper catalog is outdated as soon as it comes off the printing press.

Larry

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Posted by richhotrain on Friday, July 15, 2016 5:55 AM

mlehman

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

 

Without the data required to conduct an audit, who's to say if Walthers is in financial trouble. But, like Mike, I doubt it. Considering the comprehensive nature of the Walthers web site, they don't even need a paper catalog any longer. A relic of the past. I haven't bought one in years. No need to.

Rich

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Posted by joe323 on Friday, July 15, 2016 6:49 AM

I heard on the news today that Verizon wants to stop printing business to business yellow pages.

Does that mean they are in trouble? I highly doubt it. My employer put all their publications  online years ago.  I think they just don't see the need to spend the money on paper and ink. My guess is Walthers is thinking the same way.

But judging by the stuff that arrives at my doorstep everyday from that government sponsored ad agency I would say paper has not completely gone away.

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Posted by rrebell on Friday, July 15, 2016 9:56 AM

I still use the yellow pages in an emergency and the only listed anymore are buisnesses, the white pages are long gone. I expect at some time Walthers to come out with their old cataloges on disk or download for reference. Now we come to the idea of how long do you think Model Railroader to still be printed?

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Posted by maxman on Friday, July 15, 2016 10:15 AM

rrebell
the white pages are long gone.

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

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Posted by BRAKIE on Friday, July 15, 2016 10:17 AM

rrebell
Walthers to come out with their old cataloges on disk or download for reference. Now we come to the idea of how long do you think Model Railroader to still be printed?

The hand writing may already be on the wall since  MR is digital too. All of the Western novels I buy is e-books as is my Stephen King and Dean Koontz books.

Larry

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Posted by ricktrains4824 on Friday, July 15, 2016 10:34 AM

Walthers is fine, not going anywhere, as far as I can tell. Their catalog just doesnt really make too much business sense anymore, what with evertything you could want online.

Like others, I have not ordered a catalog from them in years, last one I got was when I joined the yardmasters club, as then the catalog is included.

I prefer the sales mailer, and online for my browsing of products, most of which are currently out of my price range anyways. 

Ricky W.

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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.

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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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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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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 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 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 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?).

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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 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 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 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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