Impact of resin cast models?

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Turn2MS
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Impact of resin cast models?

Post by Turn2MS » Fri Mar 16, 2018 8:11 pm

Hi, just wanted to start a conversation about the future of resin made model cars.

The production of resin made models is clearly on the rise. I assume the reason is less expensive molds (helps lower cost of production and the volume necessary to recoup costs), lower assembly cost (no opening parts) and speed to market.

but what does this mean for us collectors?

Based on my observation, although resin made models may have better details in curves, they tend to have more defects and no opening parts. Prices are the same or more expensive than diecast cars of recent past.

The good thing is that the variety of model cars produced has exponentially grown giving us collectors more choices than ever. Manufacturers can afford to make them in limited quantities to push up perceived demand, but the reality is even though they may be limited in production, the demand may not be as great as would seem compared to years ago, because the there are just so many choices of good models to buy with more being released daily. This drives down resale values and the potential to recoup purchase costs, making the hobby more difficult to sustain for those who have a limited amount dispensable income for luxury items. To top it off there are often times multiple manufacturers producing the same car which further drives down the demand despite limited productions.

If resin models are cheaper to produce, why haven't they been passed to consumers? Seems manufacturers are selling the fact that models are now more detailed and therefore should command a higher price, but seems to me there is a larger profit margin, as indicative of the all the new brands emerging. Riding on the coat tails of this increase are established manufacturers who also want to play in this resin field. So now we are seeing resin models come in at the same or greater price than diecast cars of a few years ago with opening parts. The high quality diecasts cars with opening parts have doubled in price (AutoArt).

Prices have resin dramatically in the past 8 years resulting in what I believe to be higher wholesale profits. Pushing prices higher for mid to high quality models opens the market for lower quality products at the entry level. As I see it the industry is feeding on the upper social economic class who can afford to pay whatever is asked, as long as they are getting more in return. For mere mortals like myself it means we may be limited to entry level cars and should give up hope of recouping costs of entry level models since they are less likely to hold their value, let alone appreciate; the future of people in the hobby are able to afford the best quality they can find while the people who cannot will continue to play with their depreciating toys.

Does anyone share my sentiments?

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[KRAFTIG]
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Re: Impact of resin cast models?

Post by [KRAFTIG] » Fri Mar 16, 2018 8:56 pm

Clearly, on the rise, it has risen dramatically over the last few years, to the point where resin mostly likely out number diecast 10:1. From the initial beginning I was a fan. They provide an avenue of models that would mostly likely not have ever been placed into production. I jumped on board. I bought many over the years.

In my opinion resin gave manufactures the opportunity to sustain margin and profitability. I don't know or understand all the back end work that goes into producing models in resin or diecast format. I do understand volume does place a whole lot in the equation. And with this niche hobby volume is paramount. So if you can't get the volume the investment in diecast isn't likely. It's not all about greed either. Materials, labor cost, quality skilled workers are some of the contributing factors to the rise in price.

There are niche resin brands that make low volume and focus on certain marque (MR Collection, BBR to name some). They have been around prior to the shift to resin. Priced $400-$500 they have their market share for niche, first to market. The entry level stuff on the eve of the resin boom was great, and selection. too. Fast forward to today, I believe the quality has somewhat sunk and QC has gone to the gutter. My conclusion, maximum return on investment.

In final, as I type this today. I now wish the move/shit ever took place. As a seasonal collector, I enjoy the full 360 aspect of a scale model be it metal or composite. I favor such brands at Norev, Schuco for sticking to their guns for the most part with some decent specimens. I'm okay with AUTOart moving to composite too. What I don't like from them is the high price point that doesn't match the detail of models for years past in a good share of recent releases.

My advice. Vote with your wallet. If you're not a fan of stagnant models don't buy them. In 2018 I decided to reduces the volume to the key essentials. As always sealed resin with all be a place holders to hopeful a future fully opening model. Does this make sense? LOL

PS Search the forums this topic has been discussed before.

Turn2MS
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Re: Impact of resin cast models?

Post by Turn2MS » Sat Mar 17, 2018 1:31 pm

Thanks for your insights.

Overall it’s a changing industry that is driven by the technological rise of resin cast models and not driven by existing customer base.

It’s not like it used to be, where one could actually count on appreciation given wise choices.

Quality models were affordable at less than $100.

Now it seems manufacturers focus their attention on customers who can afford high prices.

I will be needing to reduce my collection to afford new releases, which I guess is a good thing since I’ve run out of display space.

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Re: Impact of resin cast models?

Post by [KRAFTIG] » Sat Mar 17, 2018 2:45 pm

It’s not like it used to be, where one could actually count on appreciation given wise choices.
As I said to many collectors, if this is your goal you're in the wrong hobby. Looking at scale models as an investment is not wise. Passion should be the driving force.

Yes it seems pricing has gone way up and the level of execution isn't at the same level as it was with some manufacturers 5-10 years ago. I hope the hobby doesn't move to 100% sealed and the opening scale collection goes the way of the dinosaur.

Turn2MS
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Re: Impact of resin cast models?

Post by Turn2MS » Sun Mar 18, 2018 3:41 am

My goal is definitely NOT to investment in these. it’s defintely a passion that I enjoy, but it sure makes the hobby more affordable if one can make a deposit and then keep trading, instead of having to only buy and eventually give away.

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Re: Impact of resin cast models?

Post by [KRAFTIG] » Sun Mar 18, 2018 8:42 am

Turn2MS wrote:My goal is definitely NOT to investment in these. it’s defintely a passion that I enjoy, but it sure makes the hobby more affordable if one can make a deposit and then keep trading, instead of having to only buy and eventually give away.
I personally think there are more models that will retain value or increase than those don't why. Key is to collect the best possible available piece. Though sometimes this is not the case as some like certain brands and marques and buy models that appeal to them and on the whole they aren't considered mainstream. Case in point for me I love Volkswagen in scale, I have 40+ models, most people won't even bat at eyelash at :D

Turn2MS
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Re: Impact of resin cast models?

Post by Turn2MS » Sun Mar 18, 2018 1:44 pm

VW definitely has potential. I have many as well and I certainly haven’t lost money on most. I love my models by Otto and Norev.

Which is your favorite? Mine is my MK2 GTI G60 in red.

BTW, does anyone know the relationship btwn Otto and Norev as some of the pieces are nearly identical w exception of Otto being resin and Norev diecast?

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Re: Impact of resin cast models?

Post by Lucky13 » Wed Mar 21, 2018 12:24 am

This tread is yet another way to beat a dead horse.
Here are few simple truths that these discussions refuse to understand.
The hobby did not start with 1:18, never was predominantly 1:18, it's not now and most likely never will be. And the issue at hand is almost exclusively a 1:18 issue.
Altho supercars are big part of the hobby, they are definitely not the "yardstick" by which the development of the hobby should be judged. Yet again, exotics - be it megabucks supercars or cartoonish tuners - are primary subject of resin models.
The world has gotten a lot more expensive. Everything costs more. Therefore profits need to be more, because you can get less than before with them. Confusing? Simple. Materials went up. labor went up, Gas went up, advertising went up. And if in the past $5 profit from a model was OK, now that number is more likely $15.

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