Skip to main content

Reply to "How does Lionel work?"

The model train business is very small, a niche business if you will.  The whole market segment is probably under $100,000,000.  Individual Toys-R-Us stores used to do more business than that, depending upon where they were located.

And the overwhelming majority of trains are manufactured overseas.  Weaver's the last train company I know of that made trains primarily in the US.  Lionel has some LionScale stuff made here and maybe some others.  When your manufacturing is not under your direct control, toy train makers are somewhat at the mercy of their subcontractors.  It's not like Lionel can call up a factory operating in China and get 30 or 300 or 3,000 units on-demand.  Capacity is limited, scheduled well in advance, and what you order is what you get (at least until your time-slot comes around again).

The items you speak of are commodities.  Toy trains are not.

Best,

George

Last edited by Rich Melvin

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

×
×
×
×
×