Model Power Out of Business

[ezdays]

Model Power was stuck in the 60s as far as their tooling.. Look at their "Mantua Classic" locomotives like the 4-6-2 and GP20 you see the same engines that was first released in the late 50s/early 60s.Their freight cars reeks of the 50/60 era train set cars that was rejected back then.

There could be several reasons for that, it could be that those running the company didn't want to invest in new tooling, or it could be that they couldn't get any bank to loan them enough to spend on tooling. It could also be that some were taking large salaries and bonuses, leaving little working capitol. And finally, the owners maybe just wanted out and couldn't sell the company, so liquidation was the only option left. Whatever the reason, it's a shame that yet another company has gone under.

I mentioned in another thread here about the number of advertisers in MRR magazine. In 1982 there were over 200 manufacturers and/or distributors. That number dropped to just under 200 in 2002, and now the last issue I have shows 57 advertisers. You have to wonder where they went, good or bad, they were here at one time offering a broad selection of products, from the very cheap to the super expensive. Not everyone can afford to spend a lot on their hobbies. You can spend less than $100 and get a R/C airplane low-end kit, but you can also spend $10,000+ to get a super-detailed jet. There is a need for both, just like in model railroading. Not everyone can afford to spend hundreds of dollars on an engine with DCC and sound. And there are those that are happy just running a few trains and buying the bottom line products because that's all they want to spend or all they can afford.

The biggest concern is that as companies merge or go out of business, we are left with fewer and fewer choices. Airlines, drug stores, oil companies, the list goes on and someday we'll be left with one airline, one drug chain and one brand of gasoline to buy. I really hate to see that happening, it stifles competition, increases prices and lowers the choices available to consumers.