Thank you to everyone who has shared feedback on this thread as well as those who have placed preorders. Like any thread, there are many twists and turns and we’d like to share our thoughts on several topics that have been covered.
1. The 5750cf and 4727cf Carbon Black Hoppers would actually be our fourth and fifth N Scale freight cars if our plans had come together as anticipated.
We were developing the Trinity 31K Crude Oil Tank Car in both HO and N scale when we learned BLMA was working-on the same project. I called Craig and after a few conversations we agreed ScaleTrains.com would continue with the HO model and BLMA the N Scale version. We shared research materials and our team actually created the artwork for BLMA’s first production run.
After we finished the tooling for the HO 4180 and 4566 Airslide Covered Hoppers, we were going to tool the same models in N Scale. We were working-on the engineering drawings when Micro-Trains announced their model. Since we had not cut tooling which is the most expensive part of the product development process, we canceled the project at a minimal loss.
2. Since July 2015, we've logged every new model request on our Facebook page, received via e-mail, posted on major Internet forums, and suggested at shows we’ve attended. I also did this when we worked for Athearn. Carbon Black Hoppers have consistently been one of the most frequently requested freight car models on the list.
We’re the only HO and N scale manufacturer to offer contemporary (1970s to today) carbon black models in mass-produced plastic.
3. We certainly did not expect to sell N Scale Carbon Black Hoppers in the quantities BLMA sold on the first production of N Scale Crude Oil Tank Cars. In fact, our projections were less than 50% of what BLMA sold.
At the time we sent the e-mail asking N scale modelers for help sharing the news about our Carbon Black Hoppers, we had less than 300 total preorders between both versions. That’s less than $9K in revenue.
Considering the research, engineering, tooling, deco tooling, and sample costs, our investment in two different hoppers is approaching $100,000. These expenses have already been paid and do NOT include the inventory cost.
Factories require minimum order quantities. To move forward now would mean we would have 1000s of unsold cars which does not make good financial sense. We can reduce the quantity but that will increase our unit cost greatly. This is why we're delaying production while we accumulate more preorders.
4. We have not developed our N scale offerings as quickly as our HO ones so there are perceptions the N scale market is not as important to us. Unfortunately we’ve lost several N scale e-mail newsletter subscribers over the past several months. (Note: we are working with our developers to segment our newsletter into HO, N, and both scales.)
Contrary to what some have said in this thread, we’re not complaining about N scale or exiting the scale. In fact, we have several N Scale locomotives, freight cars, and rolling stock projects in various stages of the development process now. We will still announce our first N scale diesel locomotive at the convention in Pittsburgh with an operating model and multiple decorated samples.
We’re simply asking for help to spread the word about our N scale models.
5. Our models are available directly from us at ScaleTrains.com as well as brick and mortar Select Retailers. Pricing from either channel is the same. We do pay freight for shippable orders over $99 in the contiguous US.
To help increase our profit margins so we can invest in new models, we do not sell our models through wholesalers. This also helps us keep price points lower whenever possible.
6. Each Carbon Black product page on our website contains the following information, “These unique freight cars are commonly found in large groups near major carbon black producers or users. They can also be seen singularly or in small blocks of cars in mixed freight trains.”
From the feedback we’ve received, we need to do to more to help educate potential customers about Industries that utilize carbon black and how they are routed from the supplier. At the every least, these cars can be used in bridge service between railroads. We’re working-on this information now.
7. There also seems to be some confusion about the era for the models we’re offering. The 5750cf is appropriate for the late 1970s to today and the 4727cf is accurate for the mid-1990s to today.
We’re offering models without and with conspicuity stripes for pre-2005 and post-2005 modelers respectively. Of course, the full-scale owners added conspicuity stripes as the cars were serviced so the 2005 date may be a little later for some cars. It’s nearly impossible to determine the exact date conspicuity stripes were added to a specific car number. Era information is noted on the product page as well.
8. Finally, someone asked about our experience. Our four founders have over 130-years experience in the model railroad hobby and Industry. We recently shipped the N Scale “Big Blow” Turbine and received numerous compliments. Our team also played an integral role in the development of the following Athearn N scale freight cars: ACF 2970 Covered Hopper, GATC 2600 Airslide, PS2 2893 Covered Hopper, 30K Ethanol Tank Car, 33K LPG Tank Car, and much more.
Thank you for taking the time to read this lengthy reply. We truly appreciate your support and feedback.
Sincerely,
Shane
Shane Wilson
President
ScaleTrains.com, Inc.
