Full Version: Decoder Prices ??????
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What is the mark up on sound decoders ?? 100% ??? Scale trains is offering a sd40-2 operator model with a loksoud sound decoder for $119.99 shipped !!!! I can't even buy the ESU decoder for that price !!!!! Confusedhock: Sad :evil: :cry:
I have been in DCC for about ten years now. When I first started I purchased Sound Soundtraxx LC decoders for around $40.00. They were basic in sound but worked very good for me. I never got decoders in everything and recently purchased a couple of no sound decoders for around $20 each. I have one of them installed and don't miss the sound. I recently spoke with a fellow model model railroader who said the sound gets to him and pushes f8 a lot. So how about if we go back to the basics no sound. Or DCC ready but no decoder. As I was writing I realized I am off topic sorry but not too far off. I really miss the Athearn blue box years. Some of you know what I talking about.
I agree with alot of what your saying!! But my point was these company's are building theses decoders in china for a couple of dollars & selling them for $100.00 thats a real good profit !!!!! & those keep alive's they are selling cost under $1.00 & they sell them for $30.00 !!!!!
kamerad47 Wrote:I agree with alot of what your saying!! But my point was these company's are building theses decoders in china for a couple of dollars & selling them for $100.00 thats a real good profit !!!!! & those keep alive's they are selling cost under $1.00 & they sell them for $30.00 !!!!!

My last and I do mean last DCC/Sound decoder,speaker and installation was $125.00 plus tax. While my last DCC decoders was plug and play $19.99 each. Thankfully I would need to buy any more decoders because the engines I wanted with DCC or DCC/Sound has been installed.

While I like DCC I can't help but wonder is the cost justified especially for a one horse switching layout?

And for the record has much as I like listening to my SW1500's 645,my Alco S-4 569-6L or the chant of my EMD SW8 567B I hit F8 after 30-40 minutes.Other days I hit the DC mode on my Tech 6 and go old school with one of my DC engines and enjoy the simple operation of DC of just turning the knob and go.
The problem with electronic devices including chip design and software development are the high initial cost. They are sold at a steep price to reach the break even point quite fast. Compared to similar products in consumer electronics are the quantities quite low. That makes it even more hard to reach the break even point within a reasonable time.

A very good example are the "very" old Lenz DCC decoders Bachmann uses in their DCC locomotives. Those old devices are sold to Bachmann by the manufacturing price plus a small premium. The development cost have been recovered many years ago.
A similar trend can be observed with the tailored Tsunami sound decoders sold to Bachmann and some others. They are quite old (Tsunami 2 hit the street some weeks ago) and can be sold closer to manufacturing cost.
Again I don't believe all of that , the boards are basically the same !! different chips !!!! How is a new company ( Scale trains } selling a sd40-2 with lok sound decoder $119.99 for basically what you would pay for the decoder from ESU ??????? Eek
the new company you speak of buy several thousand of them . and probably uses a bidding war to get lower price. for example lets say I am going to build 5000 of an abc123 locomotive now say you make sound decoders and faraway, and brakie builds sound decoders also. Now I put out a bid list saying I need 5000 of these decoders and 50 of the abc124 decoders. the abc124are for another model I am thinking about building but want to build some for test marketing. Now everyone sells these for $100 with a cost of $5 How much will you sell 5000 for and how much the 50 Now lets make this more interesting send me a PM for this. faraway and brakie send one also. Lets see who sells me 5050 decoders that retail for $100. Oh yea I will put your decoder name on all ads and literature included with model. with your approval after you inspect one.
Your right ! But ESU isn't giving them away either they're still are making $$$$ they will make 20% on them But, will make 100% on you !!!!! I have 4 loco's i want to put sound in , I have save some $$$$ & pick 1 because of price !!! Maybe if there was a better balance i could buy more & they could sell more volume Too!!! But that's jusy my thuoghts !!! Thumbsup
I've got one locomotive with sound. I bought a left over Tsunami 1 when the twos came out and the local hobby shop slashed prices on the 1's. I won't have any more locomotives with sound. The sound decoder I bought was for my CF7 which will run on my home switching layout with volume turned down to what would be scale sound (ie 1/87 as loud as the prototype).
The one locomotive I have with sound installed is used on the modular club set ups and frankly there is usually so much ambient noise at the shows we set up at that I see no reason to add to the noise.