The Cruelty of Competitive Clashes

One of the strange consequences of a deregulated bus industry is that it is strangely regulated. Of course, the system is intended to encourage new operators to come into "the market" and improve services and reduce fares. But if you are the incumbent operator and you actively "compete" against the new arrival, then you are in the wrong.

Currently the Competition and Markets Authority is getting all sniffy about the proposed merger of Sainsburys and ASDA. This, they suggest, will result in less competition and higher prices. But, somehow, the "threat" of the so-called "discounters" needs to be countered or there won't be any Sainsburys or ASDA. Then there would be uproar from consumers AND the CMA.

That's the problem with "the market" - there will always be winners and losers. Ultimately the consumer will decide.

If the consumer is a bus passenger and the industry puts its fares up too much, the consumer will buy a car, a bike or a pony and trap.

Which is why James May's second documentary about the troubles faced by hobby manufacturer Hornby was utterly fascinating.

The lead player in the ensuing drama was Simon Kohler ...

... recently re-recruited to help the company stem mounting losses. He, you could say, was in the red corner.

In the orange corner we meet the largest model retailer Hattons ...

... now operating from a huge warehouse in Widnes.

Older modellers will remember their distinctive premises on Smithdown Road, Liverpool.

And in the dark green corner ...

... is Rails of Sheffield ...

... based in Sheffield (there's a clue in their trading name)! It, too has grown into a big business.

OK. three corners is a bit far-fetched, but stick with it.

To understand the rules, we need to be reminded that no one makes model railways in the UK any more. (There are some minor exceptions, please don't write in!) Almost everything is actually manufactured in China.

So the two retailers have a spiffing wheeze. Why don't we "make" (i.e. have made in China) models ourselves; then we can make a bigger profit and whop Hornby! And we can make our models better, with finer detail and more whizzy electrical stuff.

So Hattons announce their "original" class 66, produced in a vast range of liveries, of which the "flying dustman" in Biffa orange is typical.

It won't be ready for a while, it has to come a long way from China, but it will be worth it.

And modellers will be only too pleased to wait and equally happy to pay £150 for the privilege. At least, that would appear to be Hatton's business plan.

But hold on, says Mr Kohler. We can do better than that. We will make a class 66 ...

... and only charge £75. (This is because Hornby are using the moulds from a now defunct manufacturer, Lima.)

Now the Lima detail is not as good, despite some "fettling up" by Hornby. So you pays your money (a huge amount or just a lot) and you takes your choice. That is how the market works. To add to the confusion, Hattons are also advertising the Hornby model for £85.

Or you could buy one made by Bachmann (in China) ...

... often advertised at more than Hatton's £150, possibly for its "rarity" value??? It is no longer "in production".

Meanwhile, in the dark green corner, Rails have advertised a "Terrier" (A1X class steam loco).

Although a "Rails" product, it is actually "made" (in China) by Dapol a UK company and competitor of Hornby.

Confused.com.

The model is not ready yet "but it will be well worth the wait".

But Hornby now rushes out of the red corner and announces its own Terrier. Hornby has had a Terrier in its catalogue, on and off, for many years (fbb has one such) but this is to be a completely NEW model, called in the trade "new tooling".

It will have improved detail and accuracy, of course.

And it is available now for a modest £90, £20 quid less than Rails.

In the documentary, it was clear that Rails people were not at all happy. The word "spiteful" was used with some gritted teeth feeling.

But herein lies the dichotomy (only available in "N" gauge - chortle chortle). Rails sells lots of Hornby models. Will they sell the Hornby Terrier as well as their own?

Yup. And it's ten pounds cheaper than Hornby's recommended price and will be sent to you free of postage charges.

Of course, if Rails' own Terrier is a better model ...

In many ways it makes the chunterings of the bus industry look relatively uninteresting.

Will the Competition and Marketing Authority become involved? Is Hornby offering a discounted price for both its models an act of "unfair competition"?

Does anyone care (apart from Rails, Hornby and Hattons)?

fbb won't be buying either. His layout is too small for a 66 and his "old" Terrier looks just fine at the head of a couple of averagely detailed malachite green coaches.

fbb paid £45 for his and it still has its brake pipes.

P.S. Rails are offering the Hornby 66 at a discounted price ...

... with free postage. It certainly pays to shop around.

Hattons Hornby Terrier is the same price as Rails Hornby Terrier.

Hornby Comes Home
Pre-announced in the documentary, Hornby is moving from its recent HQ in a posh office block in Sandwich back to its ancestral home ...

... actually Triang's ancestral home; but we won't quibble about the detail.

Currently the "Visitor Centre" is still there ...

... but other departments are moving back progressively.

Dapol, mentioned earlier, have just announced a nice new O gauge wagon ...

... at a painful £50, but manufactured in the UK! Is this the start of a trend?

Will Hornby recruit skilled folk from China to re-establish production lines in the Lines Brothers former works at Margate?

Watch this space!

 Next ferry blog : Thursday 21st March