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Reply to "Any Rumors Re: An S Gauge Group Buying the MTH S Gauge Line?"

"So, if a deal is made what exactly are you entering yourself into and buying if such a sale of the line is done?"

The factories demand and get up front payment for tooling costs before the product is shipped, according to some who should know.  That's true of domestic manufacture too, of course, except you own the tooling if you paid for it. That's less clear with China.  You don't see profits until you amortize the cost of the capital investment in tooling, not to mention operating expenses.

 

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