[Closed] Paying too much

Tim, there's no "short answer" here. Several aspects of your commontary, theoretically could be.....

...debated for days. "Everything" (..but the value of my home) has gone up. Diecast retail price points seem to rise by the minute yet collectors continue to pay the price. Analogous to sports, "Why is A-Rod worth mllions each year? ....b-e-c-a-u-s-e someone is willing to pay it."

True, increased manufacturing costs contribute but the "emotional factor" cannot be ignored. Companies know that producing "just the right model" will trigger that precious "gotta have it" response. Any good business will be keenly aware of pricing stratigies, pusing MSRPs as high as possible WITHOUT turning away potential customers.

Collector passion and business savvy often create lucrative earnings. "If it doesn't sell lower the price, if it sells like crazy, jack it it." Take NEO for example, as these great little 1/43 "sell like crazy" incremental price increases have followed; this is "business 101."

Factor in the demise of numerous diecast companies thus creating "spot runs" of certain models which have directly raised prices because of scarcity, and now collectors expierence total shock when looking at secondary market values. Recent eBay diecast auctions support this unequivocally. We as collectors, pay dearly when emotions are involved.

A percentage of my collection has out-performed any other investments I have. If I was smart I would cash in now. Period.
But I just can part with my 1959 Cadillac Flower Car or my "fleet" of 1950 Ford Police Cars or my four door hardtops...you get my point, my heart overides my head.
This is VERY common among ALL collectors.

Tim you are correct, "things are getting a bit pricey." Personally, however, I see no end in site. Oh, it will top out eventually but not today, or tomorrow or the next....

-Chris

At least you have something in-hand compared to a dinner out, a sporting event, etc.

Tim/I think its the trickledown effect

When the govt.punishes success and forces idiotic programs and policies everyone pays the price.The people that still have money are spending it which may come back to haunt them in the coming near future.All I can say to everyone is be careful.

Tim/I think its the trickledown effect

When the govt.punishes success and forces idiotic programs and policies everyone pays the price.The people that still have money are spending it which may come back to haunt them in the coming near future.All I can say to everyone is be careful.

WELL said Greg !!!!!!!!!!!

The real question is this...

"What is the motivation for buying?" If you can answer that question, then you will know if you "paid too much". If you buy for your own enjoyment, I'm not sure you can over pay (or under pay), depending on how much you enjoy your purchase. If you're trying to invest or planning on getting a return, I have some swamp land in New Jersey I'd like to discuss with you. It all gets down to why you collect and what your focus is. Some guys think $20 is too much. Others will spend thousands for a hand made, unique creation. In reality, the $500 is not the "high end". It is expensive but it is not the high end.

Additionally, there is the value proposition. $500 may actually be a good deal on certain models. I don't know that I'd be able to pass up a MIB MOC Barrelback for $500.

You have current market conditions as well, which will dictate current prices. If the new MOC Dodge had been introduced about 5 years ago, at the height of the MOC market frenzy, it most probably would have been sold out by now.

No easy answers on this one but a fun discussion.

The real answer is this ................

Companies using white metal as model medium have dwindled in the past years. This has resulted in only a few companies left still using white metal and with this the skilled labour force in using it has also been cut back. Another factor in labour is that many of those that were employed in this industry have retired.

So we have a limited supply of skilled personnel in this arena. As far as I am aware white metal model cars are now only made by companies operating in Europe and one in Canada and this has a knock on factor regarding labour charges.

Many years ago at one of the ModeleX shows I discussed skill training in hand built models with one of the proprietors of Durham Models. He said it was difficult to find young people that had even basic knowledge of building a plastic kit!

Chris

Paying too much continued

I guess what I feel is that diecasts are getting very good and all sell for well under $100. What is more is that these models are now being produced by the bucket load .
Today I can put the 1956 Pontiac by Neo against a 1955 Pontiac by motor city and as long as I do not pick it up, do not see why one is $500 and the other $75. In fact as white metal is usually thicker, the diecast sometimes looks more like the real thing.
Its fine to pay $120 for a Brooklin but $600 upwards is another matter. I do not collect for investment purposes, more because I would like to own the real thing but can only contemplate this at the 1 43 level!
Its been an interesting discussion and thanks for input. I am going to sit on the sidelines for a while.

PS....

Re.previous post, I do understand the argument that the white metal is more because of rarity, skill to produce etcc etcc... My point is when you look at the two models mentioned in a showcase,the price difference is very hard to justify.

Agreed but, again, reality smacks us in the face...

Whether white metal, diecast, resin or plastic, in the final analysis, they are all just a small replica of the real item and each one will have its imperfections. Truth be told, some of the replicas may be better than the original 1:1 in fit and finish and even, functionality 0:)

We can spend days debating the relative merit of one model over another. In the end, how much I am willing pay for any single model is only a reflection of how much that models is worth to me at the time of purchase. I've learned, a long time ago, not to try to set an upper or lower limit to what I will buy. If the price doesn't prevent me from paying my mortgage this month, I have the money and the model is available and desirable, I'm on it like spots on a leopard! I've spent over $2000 for a model and have picked up a blister package at Walmart as well. Different strokes.....

Hey John how about some pictures of that $2000.00 model ?

If you have to have a particular model then there is no such thing as paying to much !

That is one way of not spending too much and that is ....

to set a ceiling on what you want to pay or to what you feel is reasonable.

BTW die-cast (zinc alloy) models need to be made by the 'bucket load' to off set the cost of producing them. It cost many thousands of ?'s to make the dies due to the material being pressure injected into to them.

BTW NEO models are made from resin using a totally different system to either zinc alloy and white metal. Resin is also used by French, Italian and British manufacturers. Just compare a Marsh Models Can Am competition car with one made by Spark and to the lay person it would be difficult to justify the ?130 price difference. However, to any one doing a bit of research they would begin to see that the Marsh Model example has all necessary details.

Cheers Chris

LOL Randy - I am with you here!