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Reply to "Maybe O Gauge Manufactures should Sell Kits for their Engines to make Affordable"

Not sure why everyone thinks labor is the cost driver, it is the cost of distribution and mark ups.  

Factory builds the unit, marks up and sells to the importer/model train company, they markup and sell in some cases a distributor, who marks up and sells to a dealer, who marks up and sells to the end user. By my count that is 4 levels of mark up.  I would be surprised if labor was more that 5% of the end customer price.

if you really want lower cost, you have to change the outdated distribution model.  Just look at menards, they have a supplier build the models, and sell direct to consumers, 2 less mark ups.  Amazon does the same along with most major retailers.  The days of needing multi level distribution have passed.

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

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