AZL January 2013 New Release – Part 3

Due to the overwhelming demand for the heavyweight passenger coaches, AZL has made the decision to expedite the next release. Available now, AZL is excited to announce Pennsylvania sleepers, parlor cars and dining cars!

Heavyweight Passenger Coaches – Pennsylvania Railroad



71003-0 PRR 12-1 Pullman Sleeper PRR Tuscan Red - MSRP $48.00
71003-1 PRR 12-1 Pullman Sleeper PRR Tuscan Red - Lawmaker - MSRP $48.00
71003-2 PRR 12-1 Pullman Sleeper PRR Tuscan Red - Chevy Chase - MSRP $48.00
71003-3 PRR 12-1 Pullman Sleeper PRR Tuscan Red - John Greenleaf Whittier - MSRP $48.00



71103-0 PRR 10-1-2 Pullman Sleeper PRR Tuscan Red - MSRP $48.00
71103-1 PRR 10-1-2 Pullman Sleeper PRR Tuscan Red - Lake Charm - MSRP $48.00
71103-2 PRR 10-1-2 Pullman Sleeper PRR Tuscan Red - Lake Felicity - MSRP $48.00
71103-3 PRR 10-1-2 Pullman Sleeper PRR Tuscan Red - North Judson - MSRP $48.00



71403-0 PRR 28-1 Parlor PRR Tuscan Red - MSRP $48.00
71403-1 PRR 28-1 Parlor 7082 PRR Tuscan Red - Grove - MSRP $48.00
71403-2 PRR 28-1 Parlor 7076 PRR Tuscan Red - Ford City - MSRP $48.00
71403-3 PRR 28-1 Parlor 7102 PRR Tuscan Red - Quaker Valley - MSRP $48.00



71503-0 PRR 36 Seat Diner PRR Tuscan Red - MSRP $48.00
71503-1 PRR 36 Seat Diner PRR Tuscan Red - 8016 - MSRP $48.00
71503-2 PRR 36 Seat Diner PRR Tuscan Red - 8018 - MSRP $48.00

These cars are sold out at the manufacturer. Many dealers do have these cars in stock. Contact your favorite AZL dealer to order.

For photos of all of the new releases, please visit:

www.americanzline.com/

Rob Kluz

Slightly annoyed...why produce so few cars? I have looked around on the z-scale retailers that I know of and none of them stocks more than a few odd cars - 18 hours after Rob's post...

...and it's three days until payday...

Petter

This is usually the case Petter. It's unfortunate, but the way it is. Manufacturers never know how many to produce so it is either a lack of, which causes frustration for the customer, or a glut of product that means the manufacturer watches his money sit on the shelves for a long time.

I don't think manufacturers can win no matter what they do. And I certainly feel your pain for not being able to get some of the goodies.

There simply is no right answer to this ongoing dilemma.

hokenstrom wrote: Slightly annoyed...why produce so few cars? I have looked around on the z-scale retailers that I know of and none of them stocks more than a few odd cars - 18 hours after Rob's post...

...and it's three days until payday...

Petter

Some will show up in ebay. Just dont overbid.

tealplanes wrote: ...so it is either a lack of, which causes frustration for the customer, or a glut of product...

This is exactly what I was previously speaking of. And there IS AN EASY WAY to work this out. First of all, the morons in marketing need to pay attention to how many items sell. Just by opening their eyes they should be able to notice that unless they go nuts in production (case in point, AZL’s High Cubes) they are always fricken SOLD OUT! So on the next run… of anything… produce 25 percent more items. And the next run of something, 25 percent more, and make yet 25 percent more of the next item… until they get the hang of calculating exactly what is going to sell well, and what might not. One just needs to pay attention to what’s going on within their company… It’s not rocket science.

Joe

I sense an anger that I feel is unjustified. Running a small business (or really any size business) is not as simple as paying attention to whats going on. There are many factors that have to be considered and all revolve around money coming in and going out. It is really disappointing from a consumer standpoint to want something and have it be sold out or unavailable. And while I agree that it might not be rocket science to predict customer demand and dealer supply, there is no secret formula. If there was, we would not have so many businesses struggling for survival and failing within 1-3 years which is average time before most businesses close their doors). If a company is doing their job right they are balancing the needs of their stakeholders (shareholder/owners and customers). From the outside it might seem that the company leaders are "morons" but from the inside they are typically hard working individuals who want to sell quality, make the customer happy and be profitable.

Yes there are exceptions and not all business leaders think the way they should. But overall, in most cases the companies that our Z community deal with are trying to do the right thing. Sell products, keep customers happy so they want to buy more products and balance customer satisfaction with profitability. Just my thoughts. I am not negating yours. But do think we might want to be more open minded sometimes.

Don't get me wrong, I'm absolutely thrilled to have any Pennsy heavyweights on order... but it's like Black Friday in Z-Land. If you aren't the first one through the door then you're dead out of luck.

For what it's worth, I'm not angry... a bit disappointed that it's been such a feeding frenzy, yes, but not angry. The easy fix on AZL's end is to do another run of each road name once the initial releases are done- since there is now, I think, overwhelming evidence that they'll sell. If they run half as great as they look, I'll be putting aside money for a few more every single time I can get my hands on them. These heavyweights are a real home run.

Unless I am way off base, (and Rob A can correct me if I am wrong),I think there would be a way to much more easily anticipate demand and thereby be much closer to the production numbers that would be indicated by a pre order system such as MTL implemented several years ago on future releases. Examples are the 4 car runner packs and now MTL is introducing 8 car runner packs.

It seems that Joe had quite a time convincing the powers that be to begin such a pre order program, but I think it is helping MTL with meeting expectations. They know in advance of the bottom line numbers and can produce a few more for the late comers, which there are always going to be.

It remains to be seen if MTL will also do the same with monthly releases on a car by car basis. Usually pre orders are about 6 months ahead of actual release date and even though there is a closing date on pre orders that insures delivery, MTL always puts up more than the basic order numbers. There are still occasional shortages, but I believe the frequency is much less since the program was introduced.

Could not AZL do the same with their releases?

I think pre announcing stimulates the buying crowd by generating a certain degree of anticipation and excitement, plus, folks can save up their pop cans, cut their kid's college tuition, or buy cheaper dog food. There is almost always a way to finance something if it is wanted bad enough.

Of course, if you are poor white trash like me, well, there is not much hope unless Rob want's to give me a Big Boy out of the kindness of his heart........I didn't think so. He is so heartless at times. :o)

Loren, your suggestion is a great one and I can see this work with minimal risk and maximum benefit to both company and customer. Great suggestion. -Scott-

Scott_S wrote: ... and balance customer satisfaction with profitability...

The problem is that there is no “balance”. I believe that less than ½ the demand for “an item” is actually produced. This is far from balancing… nor is it helping profitability in the long run.

I’m in the middle of remodeling the house we bought just a month ago and money is rather tight. It’s seldom that “extra” money is sitting around that I can just take shopping for what Z scale is out there at this particular moment in time. And if there is immediate money available, chances are I’ll buy a new tool that might make my house remodeling chores easier. With that said, personally, I no longer look at the Z world and say to myself, “Oh, I like this one, and that one… I’ll have to start putting money aside for them.” This is because they just won’t be there in a month. Hence both the Z company that produced the item looses sales ($$$) and I lose out on the product (ZZZ).

These companies need to realize that in this economy, most people just don’t have the “disposable” Z money they used to have sitting around to jump on a purchase the second they see it hit the market. The customer may just need to save up a bit for it. Plus, it’s hurting the Z Scale newbie or wannabe because the items they see one month are not there the following month. Psychologically, this is worse than "Vaporware" because an item was actually produced and available just two weeks before, but now, nowhere to be found.

No, if these companies actually want to make real, substantial, profits, they need to have their products available. What they are doing now is simply producing “teasers”.

Don’t get me wrong, the new products some of these companies are putting out now kick azz (specifically AZL’s work over this past year), however, the companies just aren’t producing enough of them.

Joe (Zcratchman_Joe, not the same Joe that Loren mentioned.)

Wasn't the same thing brought up a few times several years ago? Then the defenders of the companies came out of the woodwork and mocked the ones bringing up these points as "conspiracy theorists" ? The idea, that the market and the supplies would be tweaked so there was always a shortage, and that the big money was in the collectors, was pooh-pohed. The very idea is ridiculous. The model trains are nothing at all like, say, baseball cards. Like someone above said. It is all about the stockholders.

Kelly, you’re absolutely correct… whether it be a large company with a large number of stockholders, or a smaller company with just a couple of owners, they are the ones making the final decisions that affect us all.

PS when I previously mentioned these being available to mostly collectors, I wasn’t meaning that this is the way the companies have actually planned it... Only that this is the way it now works out.

You guys are absolutely right. Companies should produce products to cover demand. I agree completely. That is why knowledge of historical sales are so useful. But what happens if you never released a product before? What happens if you don't have historical data to work by? Well you look at your sales and take your best guess. And there you heave the heavyweight run. Best guess... way off.

Now you naysayers. I few years ago, I got absolutely crucified by the lack of autoracks. Remember that? The exact same criticism came out. We need more, keep inventory, etc. Again, these were new cars with no historical data and the best guess was made. So what did AZL do? On their 2nd run of autoracks, they used their data and made more cars. And now we have inventory a plenty with more than enough to go around. I am still waiting for the thank you for this but I guess that fact missed.

But here is the good news. More heavy-weights are coming. New styles, new roads and higher quantities.

As you waiting for your heavyweights, take a moment and visit your favorite AZL dealer's website and check out the vast selection of models that they have in stock and ready to ship. ACF 3-bays, ACF 4-bays, PS2-cd covered hoppers, 3564 gondolas, waffle gondolas, beer cars, high-cube boxcars, cabooses, Bethgon coal porters, GP7s, SD70M, F59PHIs, GP30s, GP38s... well you get the point. Inventories abound. Operators are standing by. Place your orders today.



Rob

Rob,

Please don’t get the idea that we are picking on AZL. All the large manufacturers of Z scale are (and I hate to use the word) “guilty” of the same thing. It’s that 2nd run (and 3rd run and 4th…) of an item that only infrequently happens. I look back to all the road names I’d like to have of certain items but might only now find used on eBay. At least AZL does, in fact, come out with 2nd runs of some items these days.

If these products were produced in the States, I doubt we’d have the same problem with smaller 2nd and 3rd runs.

Maybe with the next item produced, they should calculate what they think they’ll need and then produce 25% more than that number. See how it goes.

PS at 70 bucks a pop, I can surely see why there are still cabooses around (I just had to toss that in there).

PPS and thank you for your help in getting the abundance of autoracks. If there were some for CN, I’d have bought 4 or 5 of them.

Scott_S wrote: Loren, your suggestion is a great one and I can see this work with minimal risk and maximum benefit to both company and customer. Great suggestion. -Scott-

Now if I could just get a percentage for all my wonderful ideas....I'd have a fleet of Big Boys

tealplanes wrote: Now if I could just get a percentage for all my wonderful ideas....I'd have a fleet of Big Boys

Probably couldn't have a fleet of Big Boys... as there weren't enough produced.

Ok guys, how come no one besides Scott sees the obvious advantage of a pre order system? For your siding with me Scott, you get three extra 'atta boys' today.

Here's my take on several of the previous comments......

Joe wrote....“Oh, I like this one, and that one… I’ll have to start putting money aside for them.” This is because they just won’t be there in a month."

Response......yes, budgeting for a future purchase is just like budgeting for any future purchase and if the product is not there, well, of course you will be not only disappointed, but disgusted, and rightly so. Answer.....pre orders. Duh !

Kelly mentioned that in the past that there may have been a 'conspiracy' mind set so as to insure complete inventory sell off.

Answer....yes, that is possible and if that were the case then that would be rather cheap of the owners of any company, but in reality, (and I'm using AZL as an example), I know both Rob A and Hans, the RICH owners of AZL. Believe me, they have disposable monies to do these trains so I doubt very seriously they felt compelled to guarantee sales by purposefully shorting production numbers.

In MTL's case, there have in the past been cut backs in initial production numbers because the owners felt the item would not sell. And they were wrong, much to their chagrin. Having empty stock shelves shortly after a new release, may be pleasing to the owner's eyes, but very short sighted and in final analysis, they very likely wished they had not cut production numbers as the 'potential' sales certainly would not have hurt their bottom line. Let's call it regretful hindsight. This has possibly happened to both AZL and MTL in the past.

Any new adventure is full of risks, and when it comes to money risks, that's a very scary thing for any manufacturer. Let's give them a bit of wiggle room ok?

Final thoughts on purposefully making small runs?....I certainly doubt that was the original intent. As I said, I think better of Hans and Rob A.

Rob Kluz wrote....."That is why knowledge of historical sales are so useful. But what happens if you never released a product before? What happens if you don't have historical data to work by?"

My response....Rob, that is exactly why I think pre announcement is crucial to successful numbers being available when the product actually comes on line.

Take for example David Smith's new N scale crawler.....the demand far out weighs the initial supply, but in this case David is able to easily produce the needed units which will end up making everyone happy, especially David.

In Stonebridge Models case, we may initially estimate initial sales at say, 25 units, but then we find that we need another dozen or so kits. In our situation it is not difficult to knock out another dozen kits in a couple hours. We have little material invested, and basically just a bit of electricity and labor packaging the kits. No big deal. In the case of AZL or MTL, material costs, scheduling, and labor is very much the issue. They simply are not as flexible as small companies who produce on site. The mention of keeping manufacturing home is good in many respects, but the sale price will certainly be much higher thereby eliminating the poor folks, (me included).

Rob also said....."Now you naysayers. I few years ago, I got absolutely crucified by the lack of autoracks. Remember that?"

Response......I think many remember that and let me say up front, Rob had absolutely NOTHING to do with the low numbers. Rob still has air flowing through his back side where the darts of dissatisfaction were so angrily hurled.

Joe has been figuratively ridden out of town on an occasion or two also when things weren't pleasing to the buying public. It really isn't fair to label them as the bad guys. I think they both have had to pretty heavily grease their feathers on several occasions to keep from drowning in the criticism pool.

Rob is the face of AZL and Joe D is the face of MTL. These guys are the bulls eyes on the target and they have absolutely no say in the numbers produced. They both have a finger on the pulse of the hobby, but they only serve as targets when something goes wrong or even right.

Zcratchman Joe wrote..... "If these products were produced in the States, I doubt we’d have the same problem with smaller 2nd and 3rd runs."

Response........I doubt it Joe. The actual manufacturers of products just can't stop the production line and thrown in a new order for 'fifty more of this and 25 of that' Scheduling is critical in production runs and can't be altered but by way forward thinking. We do wish it were as easy as pushing a button and out would pop the desired replacement parts, but it just isn't so.


I've watched the injection machine at MTL on occasion and when the machine is first warmed up to heat the plastic, the workers must run a certain amount of pieces just to make sure the machine is up to temperature and the pressure is right before they actually begin the production run.

This does produce less than perfect pieces during the start up of production and I have always wished that both MTL and AZL would offer 'less than perfect' or 'seconds' at a much reduced price and have them clearly labeled as 'pre production' pieces and there is no guarantee of any consistency nor quality.

This would supply the modeling world with 'junk' and 'scrap' pieces to populate our yards and sidings. There is always junker pieces found in real life in scrap yards and out of the way places.

If 'seconds' were clearly labeled as such, there would be no negative reflection on the manufacturer's part. I can see the concern though of having people get the mistaken notion that the items were a reflection of the companies quality. Seconds would have to be clearly labeled as such. Kind of like 'as is warranty' on used cars.......you're lucky if they make it home before the muffler falls off :o)

Finally and I know this is too long.......please don't throw stones.....I do think it would be wise to implement a pre order system in many cases.

Enough of my ramblings.....my fingers are tired and my eyes are crossed.

Have a good day in spite of me.

tealplanes wrote: Ok guys, how come no one besides Scott sees the obvious advantage of a pre order system?

It all goes back to the economy. No one wants to be locked in to something when their circumstances may change before the time the item is actually produced. A lot of people are unemployed or just getting by. This is a period of spur of the moment purchases.

...yes, budgeting for a future purchase is just like budgeting for any future purchase and if the product is not there, well, of course you will be not only disappointed, but disgusted, and rightly so. Answer.....pre orders. Duh !

But even with budgeting for a future item, one MUST be able to expect the product will be available for longer than a stinkin’ week or two! And who would have imagined that just a few short years ago, we’d need to “budget” for a fricke’en toy train car?

…I know both Rob A and Hans, the RICH owners of AZL. Believe me, they have disposable monies to do these trains so I doubt very seriously they felt compelled to guarantee sales by purposefully shorting production numbers.

Now I’m not a real believer/fan of the any conspiracy theory here, but anything is possibly… and a lot of RICH people have gotten RICH by doing this very thing.

In MTL's case, there have in the past been cut backs in initial production numbers because the owners felt the item would not sell.

Really? Sounds pretty stupid producing an item that one doesn’t think will sell.

Having empty stock shelves shortly after a new release, may be pleasing to the owner's eyes…

Wouldn’t that all depend on just how many were sold? 5 is not pleasing, while 500 may be.

…but very short sighted and in final analysis, they very likely wished they had not cut production numbers as the 'potential' sales certainly would not have hurt their bottom line.

So next time perhaps they should produce 25% more than sales projection numbers. The extra cash will make it easier for them to do again the next time… perhaps 50% more. Further, the extra profit from one item, will also make it easier if a batch of an different item has to sit on the shelves for a while. Remember, items like injection molded toy train cars are not very expensive to produce in the first place… especially once the company has made thousands of that particular model and just painted it differently.

In Stonebridge Models … In our situation it is not difficult to knock out another dozen kits in a couple hours. We have little material invested, and basically just a bit of electricity and labor packaging the kits. No big deal.

Sorry, but let’s see – little material invested, some electricity, and the labor to drop these in a plastic bag and staple. AND YET your Z scale items range in price from $6 bucks to $100 bucks, and averaging around $26 bucks. Yes, I know someone has to “design” these, but with the design software we have these days, that’s the easiest part. You should have mentioned one also has to PAY for the laser machine in the first place.

…The mention of keeping manufacturing home is good in many respects, but the sale price will certainly be much higher thereby eliminating the poor folks, (me included).

I beg to differ… when all of the problems with manufacturing in China are taken into account, I believe manufacturing in the States is less expensive – plus, the manufacturer is able to keep their mold and not “give it over” to the Chinese, plus the products can be branded as made in the USA.

Rob is the face of AZL and Joe D is the face of MTL. These guys are the bulls eyes on the target and they have absolutely no say in the numbers produced…

Which, if true, makes absolutely NO SENSE, and just goes to show very clearly the stupidity of both companies.

Zcratchman Joe wrote..... "If these products were produced in the States, I doubt we’d have the same problem with smaller 2nd and 3rd runs."

Response........I doubt it Joe. The actual manufacturers of products just can't stop the production line and thrown in a new order for 'fifty more of this and 25 of that' …

Seriously? 25 or 50 more of an item? There are thousands of Z scale runners out there that need these items. If the manufacturers are thinking in terms of only 25 or 50, they’re thinking small time (no pun intended), and need to find more distributors to get their products out there to the public. Maybe a joint venture between all Z scale medium to large manufacturers.

I've watched the injection machine at MTL on occasion and when the machine is first warmed up to heat the plastic, the workers must run a certain amount of pieces … This does produce less than perfect pieces during the start up of production and I have always wished that both MTL and AZL would offer 'less than perfect' or 'seconds' … This would supply the modeling world with 'junk' and 'scrap' pieces to populate our yards and siding. … If 'seconds' were clearly labeled as such, there would be no negative reflection on the manufacturer's part.

I used to be a maintenance man as well as an operator on large injection mold machines for a toy manufacturer, so I know what you’re talking about. I’d say if they kept the bodies of the cars that were CLEARLY not molded with enough plastic to even mistake it for a regular for sale car then it would work as you describe. This can happen a few times during start up, and the “startup containers” could simply be pulled out of the way and sorted out at the end of the shifts.

Zcratchman_Joe

Joe,

I don't want to get into a Hatfield/McCoy feud here, but I have to disagree with you on a couple of points......

1.The fellow who pre orders is not locked into purchasing the item once released. Even IM allows dealers to back out of previous orders if they so desire with no questions asked.

I do know that Anthony requires a % down on pre orders, which does help folks carry through when product is released, and I see your point about not being able to afford it at the release tie due to unforeseen circumstances. It would be a seldom occurring hassle for guys like Anthony at Z Monster Trains to transfer the down payment over to a credit if need be, or he would reimburse the customer in most cases. He tries very hard to accommodate his customer's needs and though it is indeed a pain in the butt to do some of these things, his service is next to none and for that he must sometimes put himself out a bit. That is the nature of a well run, truly customer oriented business model. Do dealers like Anthony and myself like those occasional hassles?.....not a bit, but life does go on for us.

2. If the customer pre orders, then he is guaranteed to get his product, even if the item is sold out in 24 hours. Pre ordering makes total sense for the customer.

3. Quote....."Now I’m not a real believer/fan of the any conspiracy theory here, but anything is possibly… and a lot of RICH people have gotten RICH by doing this very thing."

I grant you that anything is possible in this day and age where character and honor seem to be on the decline, but with tongue in cheek, I reply..."Suppose we close the store, fire the manager, and double your money back.....then will you be satisfied?" Some folks wouldn't be happy if you did all that for them. I do have a customer or two that totally tests my resolve not to check myself into the local asylum on occasion.

4. Quote....."Sounds pretty stupid producing an item that one doesn’t think will sell."

It is not the idea that it won't sell in the first place, it is the fear that not that many will sell. Granted, it is a bit short sighted and lacking in faith, but none the less, a concern for the owner to consider when spending the grocery money to develop product.

5.
quote....."Yes, I know someone has to “design” these, but with the design software we have these days, that’s the easiest part. You should have mentioned one also has to PAY for the laser machine in the first place."

oh contraire.....it takes many hours of trial and error to perfect a simple kit. First you draw it to the best of your ability, then test assemble and redraw the parts that weren't quite right. This can happen several times until you get it right. I'll bet you are familiar with the expression, 'good enough for government work' I'm sure you do appreciate a 'fine fitting' kit instead of one you have to adjust and alter to get to go together.

Karin's first kit for Stonebridge Models was a church. It had its good points, and its bad points in her opinion and likely in the mind of those who purchased the kit. You should have seen her 'bucket full' of trial and error models until she was satisfied to put the kit out. True, it was her baptism of fire into designing, but she was not about to release something she could not be proud of. In looking back at some of her early designs and learning period, even she will shake her head and wonder at the crudeness of her early work. She is vastly improved and can be proud of her efforts.

Yes, the lasers have to be paid for, but when they are, then do you give yourself an automatic wage cut just because you no longer are paying for the machine except for upkeep and future repair? First the manufacturer decided what his time is worth, factors in the additional costs, and then sets his price according to that. When material costs sky rocket, then price adjustments must be considered.

6. I totally agree with your notion of keeping the manufacturing home. Several advantages as you state. The cost to the consumer will be higher.......honest.

7. Quote.."just goes to show very clearly the stupidity of both companies."

It isn't Joe's or Rob's fault if they become the fall guy. The responsibility lies directly on the owner of the companies. There is always a guy to blame and while that is unfair in these guy's instance, they are elected by no fault of their own. They gotta have broad shoulders for sur

Joe, we don't like certain aspects of this hobby, but I was there and in person back in 2004 with Rob in Seattle and Joe in Cincinnati in 2005. They were on the cutting edge and center stage of new products coming out. Neither had any idea of where we would be 9 years later.

We can all be very thankful for the strides made in Z scale manufacturing.

We do live in the best of times hobby wise..........in spite of shortages.

That's my story and I'm sticking to it.

Let's go build something Joe.

Nope, no Hatfield/McCoy here… just expressing opinions is all.

tealplanes wrote: Yes, the lasers have to be paid for, but when they are, then do you give yourself an automatic wage cut just because you no longer are paying for the machine except for upkeep and future repair?

I should have been less annoying and more explanative… I meant that yes, you DO need to pay for the laser and the prices reflect this.

Let's go build something Joe.

I won’t be building anything other than 1:1 for quite some time… I have a ton of remodeling I want to get out of the way first.

Later,
Joe (Zcratchman)