Postby chuck » Sat Mar 18, 2017 4:05 pm
Jim, thanks for posting the nice photo's showcasing the detailing.
K-Line was going to try a "new" model for doing business in the toy train/scale arena. They were going to TRY to get rid of the middlemen, aka the local hobby shops, and do direct mail order with their perceived market base. The K-Line club was supposed to be a prototype/trial balloon. Lionel's catalog MSRP is based on every item being handled three to five times. MTH's is based on two.
This schema only works well if you do things like the original Williams product line (KISS, Keep It Simple, Stupid) or you do what Sunset/GGD does with extremely limited production that is catering to a very small but dedicated audience.
You need the LHS to do your repair/service work for you if you intend to offer something other than basic stuff like Williams or you basically make limited run hand crafted material that is made on demand and checked carefully before shipping.
Some of K-Line's "Super Stores" bailed when they found out what was being planned. There was no way to sustain K-Line's pricing on a typical distribution scheme where you need the LHS to do your service work. The complexity of the trains they were selling precluded sending everything back to North Carolina where there weren't enough staff to take care of anything.
I had high hopes for K-Line when they started making scale equipment at reasonable prices.
Once I built a railroad, I made it run,
Made it race against time.
Once I built a railroad, now it's done --
Brother, can you spare a dime?