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Reply to "Deluxe Polar Express"

Hi Francine

I agree it is simple ECONOMICS.  If you do not grow the market and people keep aging out of the market, the market will dry up and you will never get a Hudson, a GS4 or an SD40.  Now if you expand your market and more dollars are flowing in then you can do more things.  So say new tooling allocations are set at 10% of total sales.  if sales are $10 then they will allocate $1 to new tooling if sales go to $100 then they will allocate $10 to new tooling.  If bringing in new people by building Thomas, Harry Potter or Hot wheels increases sales to $1000. Then they will have $100 for new tooling.  Now the ECONMICS will decide if they should invest the new tooling in Fantasy or in Classic.  The odds are they will do a mix as they want to continue to pull in new blood but they want that new blood to move to the more expensive classic line.

Anyway I have tried my best to explain why both are needed.  I appreciate that those on this forum are of course vested in the classic line (Gilbert, Flyerchief, Legacy), but they need to understand that in order to get new tooling dedicated to what they want, the market needs to expand.

--Rocco--

OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

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