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13/05/2011 4:09 am
Excerpt from a Vinny DiMezza e-mail regarding our hobby...
State of the Hobby: Short version. China's cost to manufacture anything is going up across the board with specialty , low volume items like diecast model cars especially being affected. Thanks to the United States exporting millions of jobs for 30 years we now find ourselves dealing with a trading partner who holds all the cards. The segment of China's workforce that can handle precision tasks, like assembling model cars is shrinking, the ones that can do it are demanding higher wages or being shifted to items that are more profitable to the Chinese Government. That's the Red Chinese, in case you've forgotten. Here are some quotes from my sources from China, "diecast is no longer profitable". " Our workforce is no longer interested in making toys for the U.S. It is beneath our workers dignity". The cost of raw materials is also at an all time high, at least that's what China says. When you have the only game in town, you can do anything you want. China's minimum quantities are also unrealistic . " Sure we make you model... 10,000 pieces". Some companies are considering pulling their tools and moving them to another country. I say, why not make it in the U.S.?
So what happens next? Alternatives! Model car collecting will never die. These are miniature works of art. And miniatures have been around since the pyramids.( I believe they found them in King Tuts tomb in the 1920's.) Model cars are evolving, some operating features may disappear in smaller scales, but model cars will go on. Resin is picking up steam, different concepts, actually more images are in the pipeline from many suppliers including PhillyMint. Well known brand names have closed the doors in the past 18 months because of the above mentioned issues and some because they were used to ridiculously high profit margins. In 1992 it cost $15 to bring in an FM model. Why do you think they sold out in 2006?
So, Vinny and Scott and PhillyMint are moving forward. Those that wanted us out of the way will be disappointed to know we're going to be here for awhile, God willing. If you're a supplier in diecast, especially 1:24 and are not currently not doing business with us, my suggestion is to pickup the phone and call us asap. If you want to move product that's gathering dust, we can help. This is a time we should be joining forces & making new alliances. Holding on to old grudges from an era that no longer exists is not good business. As for PhillyMint, sales are at it's highest since 2007, the model car mailing list is growing as we pick up new collectors from stores that went out of business, so it appears that I made the right decision to stick it out! Thank you Lucas McCain.
He also spoke of his bad health issues during the recent past.
13/05/2011 6:30 am
I believe Exoto anticipated these problems and a couple of years ago...
... moved their manufacturing operations to Abu Dhabi.
13/05/2011 9:44 am
Forget Communist China and collect 1/43 models made in England!
There is some beautiful work being done in White Metal in England and Canada.
13/05/2011 12:16 pm
I owe George B an apology...
...I thought there was a lack of facts in HIS email that was
posted here last week....this one takes the cake!
Minimum order....10,000 pcs. LMAO!!!
I don't think TFM and DM did 10,000 pcs. all last year all
models combined!
13/05/2011 1:02 pm
I like the reference to King Tut's tomb :))
13/05/2011 2:28 pm
I like his reference to The Rifleman.
13/05/2011 2:46 pm
Randy, that was intended as an exageration.
13/05/2011 2:48 pm
That was his reference to his childhood heros who weren't afarid to take a chance. Vinny stayed with the hobby and his business.
13/05/2011 3:23 pm
Minimum orders are not even a factor....
Once you get 500pcs justified in a could different colors,
You're done. It's all cost per unit after that.
13/05/2011 4:42 pm
Who are you his ghost writer? LOL
13/05/2011 5:38 pm
Many parts of his comment make sense...........
and business people who visit China will understand the shift about interest and ventures the Chinese business men are looking for.
If the hobby is shifting to resin models, forget me.......there is already enough plastic in the latest DM models plus the down grade in parts count, details and authenticity.....and also engineering standards: the most obvious is the 1949 Olds you can see through the cabin if you open the trunk which is unacceptable. The delete of operating features is the same.
Another example.... are the 60 Cadilacs Seville and Biarritz worth the price for so old technology? absolutely not but some of us want them and buying them.
In the last two years, I feel cheated by DM and my business has shifted to high end 1/18 scale.
Back in 2004, my purchase from DM was about 20 models a year. Since 2009, it is about 4 a year.
By comparison, 1/18 CMC is getting 90% of my business at a cost of about two DM products I am most of the time disappointed with.
14/05/2011 3:08 am
You really have a problem being nice, don't you. Part of the article I didn't include were his references to his health among other things. I included only the stuff that referred to our hobby - diecast car collecting. Aren't you one of the perrenial whiners who complain we DON'T talk about that enough? When we do you still have nasty comments.You need to see a doctor about your problem!
14/05/2011 3:15 am
How can I make you understand the word "Exageration"?
14/05/2011 3:22 am
It's not an exaggeration, it's a myth.
14/05/2011 3:22 am
Please don't make fun of my health I am sensitive.
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