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Reply to "Mike Wolf to retire and close MTH"

@IRON HORSE posted:
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So currently, Menards introduces people to trains with value prices and cool buildings and then... hands those consumers over to the "real" train companies, where the big money is spent.  Seems a little short sighted to me.  Isn't the reason for starter sets with minimal margins to get people hooked?  And then they got you... for years, spending big money.................

I think I've heard more than one dealer suggest the better bang for the buck in terms of profit is the selling of a bunch of starter sets to the general public vs the $2K+ engines to a few die hards.  Maybe I heard wrong.

So Menard's might not be short sighted and may just well be doing exactly what does make sense.  Especially since they don't have to deal with detail oriented (talking the high end rivet counters here, no offense meant to same ) consumers who demand nearly every detail be correct. 

If they are in the decent profit segment and can continue to do so, "turning away" from us train addicts who need the higher end gizmos may not really be turning away from anything they need to deal with, since this is just a side thing for them.

They seem to have found their niche and are most likely doing OK with it, though only Menard's knows for sure how much money that make from it.  As mentioned many times, it's mostly due to the big boss being a train guy himself.

But yeah, Mike's still retiring. (to keep slightly on topic)

-Dave

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

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