View Full Version : RC2 plans to devote their vast resources to researching and to creating only "winners
midtown 04-23-2005, 10:52 PM from the cnet mailer
RC2 ~ Johnny Lightning News
In our recent talks with RC2, we have confirmed some information about Johnny Lightning that we had previously suspected. RC2 has plans to devote their vast resources to researching and to creating only "winners" for the Johnny Lightning line. They have committed to reduce production numbers on some releases if warranted. We are very pleased with the direction that the Johnny Lightning brand is heading and our customers must agree with the new marketing strategy as our sales of all Johnny Lightning have been on a meteoric rise lately!
We have posted new pictures of the Mopar Muscle Release 10, Classic Plastic, and Firebirds Release 3.
We can't wait to see what the rest of 2005 brings for Johnny Lightning.
dipstick 04-23-2005, 11:03 PM Of course they are going to say that. What else would they say to one of their customers??
midtown 04-23-2005, 11:05 PM So it's not just the vatican blowing white smoke this week?
superduty455 04-23-2005, 11:16 PM I find this interesting:
"our customers must agree with the new marketing strategy"
Chris
Dadvball 04-23-2005, 11:47 PM In case it hasn't been posted here yet, or you don't get Toy Cars & Models, here is an excerpt from the May '05 issue, Editor's Note, written by Merry Dudley.
"RC2 has owned Playing Mantis for about a year now, and the cars it had been working on before the sale are coming to an end, leading to fewer cars on the pegs. During the last few months, I've talked with several collectors about the lack of new Johnny Lightning product, and every person expressed concern about the future of the Johnny Lightning brand.
And I have to agree. My recent visit to RC2's Toy Fair showroom only heightened my fears about the fate of Johnny Lightning - I didn't see one person from the Playing Mantis group, and our tour guide spared less than 15 seconds on the Johnny Lightning line. In past visits, I've spent an hour or two with Playing Mantis executives. If I hadn't exclaimed my delight at seeing the 1983 Hurst Olds in the display, I'm not sure we would have even had those 15 seconds."
The main theme of the article is about licensing, and how PM was very good at listening to it's customers regarding a new casting, while other companies would say "Well, maybe someday." And about how Tom Lowe was a one-man licensing committee. Per Dave Metzner, "If Tom want to do a project, he handled the licensing end of things. If Tom liked a license, we renewed it. I don't think it is quite that simple at RC2. I'm sure they are trying to digest their acquisition and determine a logical way to continue."
Merry ends the article with this: "While RC2 "digests" its acquisition, let me send out one last heartfelt plea. Johnny lightning cars are beloved in this hobby. A new owner should be ecstatic that it now controls a brand that incites such loyalty."
What's it gonna be boys?
noddaz 04-24-2005, 12:29 AM What's it gonna be boys?
Ummm...
RC2 runs PM into the ground.
TL buys the rights back for pennys and starts over....
midtown 04-24-2005, 12:38 AM ahhh, like when Mr. Burns sold the nuclear power plant to the Germans.
Bob Justbob 04-24-2005, 01:33 AM [QUOTE=superduty455]I find this interesting:
"our customers must agree with the new marketing strategy"
(completing sentence) as our sales of all Johnny Lightning have been on a meteoric rise lately! I think they are trying to say that the customer is voting with their dollars. I for one hope that they cut down on some of the crap releases that we all know and love (not) and that is what I get out of this statement. I don't think they are into mind control.....yet!
Bob
carnut2256 04-24-2005, 08:45 AM from the cnet mailer
RC2 ~ Johnny Lightning News
In our recent talks with RC2, we have confirmed some information about Johnny Lightning that we had previously suspected. RC2 has plans to devote their vast resources to researching and to creating only "winners" for the Johnny Lightning line. They have committed to reduce production numbers on some releases if warranted. We are very pleased with the direction that the Johnny Lightning brand is heading and our customers must agree with the new marketing strategy as our sales of all Johnny Lightning have been on a meteoric rise lately!
First of all, it's kind of hard to substantiate a "meteoric rise" in sales of JL products when so few new releases have been issued, no? Second, whenever there is a rare new release, starved collectors are most likely going to snap up whatever is finally released, so those sales trends are a little "skewed" as well, no?
So RC2 shelled out 20 mil to what, "shrink" the product line? And who is the qualified individual at RC2 who gets to determine exactly which casting/release will be a "winner"? By which set of standards? How "reduced" is production going to get?
Hate to be a "doomsayer", but this ain't lookin' too good for us, folks!
RobDog 04-24-2005, 09:24 AM they're really's no difference between them and some of us....
...buy the product,toss it into a box...then never look at em again.:rolleyes:
IF there is/was a "meteoric rise" in sales,I would (quite ignorantly)assume that it would be the last of what PM had in the works.
Shrink the line?OK,fine.
.......just be prepared to shrink the loyalty base as well.
Remember,some other company will always step in, where RC steps out.
I just hope they do the right thing,with collectors in mind,that's all I can hope.
MoparWL 04-24-2005, 09:32 AM I just hope they do the right thing,with collectors in mind,that's all I can hope.
Consider that almost every JL card says some version of:
"Specifically Designed for the Adult Collector"
I would hope they keep the collector in mind ....
robmcin 04-24-2005, 09:40 AM OK, to be the not doomsayer here, I seeat least 2 new releases coming out every month for the rest of the year like Mopar Muscle, Firebirds, Muscle Cars, Classic Gold, etc and another 2 releases of the other stuff, Street Freaks, Coke, Texas Hold'em, etc. Where in this mix is there a decrease? They may be cutting back on the production numbers of each release (that's a good thing right? makes the cars more special?) but I see an increase in releases planned.
T/A Tom 04-24-2005, 09:44 AM If they reduce runs then still sell the e-tailers the same amount then there will be less found in the wild. Maybe that's why so few releases are being found in the stores....which is more fun to me. Bummer. Besides I don't want a whole inner, just a few. If the e-tailers sell broken down cases to help out those that don't want a a whole inner they will take the WLs for higher sale. I see this as bad news.
RobDog 04-24-2005, 09:45 AM Your ruining my dark gloomy day with positive thoughts!;)
Macs_Little_Car 04-24-2005, 09:56 AM Looks like a pretty full year:
April
Sixties Sizzle R1, Mopar or no Car R6, Star Trek Battle Damaged, Street Freaks 15
May
Hot Rod 2 R2, Muscle Cars R8, Street Freaks 16, Texas Hold 'Em
June
VW2 R3, Firebirds R3, Classic Plastic
July
Mopar Muscle R10, Classic Gold R28, Coke w/Tin Box, Street Freaks R17
August
Trucks and SUVs R2, Chevy Thunder R3, Universal Monsters R2
September
Mustangs and Fords, Muscle Cars R9, Holiday Classics, Street Freaks R18
October
Sixties Sizzle R2, Mopar or No Car R7, Texas Hold 'Em R2
November
Chevy Hi Performance R1, Firebirds R4, Rock Art/Trivial Pursuit?, Monopoly, Street Freaks R19
December
Classicc Gold R29, VW2 R4
Plus 1/24 Muscle Cars coming out in July, August, September, October, November and December
and 1/24 Coke Cars in May, July, September and November
1/18 Muscle Cars in June, August, October and December
1/18 Coke Cars in May July and September
X-Traction R3 Slot cars in June
X-Traction Dukes of Hazzard in September
X-Traction R5 Mopar Muscle in November
Thunderjet 500 Mopar Madness in June
Thunderjet 10 Bowtie Brigade in November
what i think that needs to be done is like what thay do with food and drinks as well as x-box - playstation - ect is have a group of consumers ie collectors and belive it or not customizers. come in and look at the new product before it goe's into production.
akind of taste tester ( if you will ) and let them throw out whats hot and whats not.
rc2 is not jl and we might as well face it. whats done is done and theres no sence in crying about it.
we kinda had a good realationship with jl and this board and rc2 choose's not to be involved with us anymore. as it is now were talking to a brick wall sort of.. there are one or two that lets us know what thay know and i thank them for it. :thumbsup: .
All in all rc2 has the first say and always will in what will be produced we have no choice in the matter. BUT.. in the end.. WE ..as consumers have the last say as we buy the product and if we dont like it We dont buy it !! simple as that... buy what you like and leave the rest. :wave:
Macs_Little_Car 04-24-2005, 10:00 AM Besides I don't want a whole inner, just a few. If the e-tailers sell broken down cases to help out those that don't want a a whole inner they will take the WLs for higher sale. I see this as bad news.
No, Tom, only the greedy e-tailers who do not care about the collector take the WL's out. We have never pulled a WL out for seperate sale and never will. All the WL's we get go out to customers in their orders at no extra charge. We have sent out at least 20 WL's so far this year.
Please do not just throw out random generalizations and include us in with those kinds of online sellers.
Thank you
Sherry & Rob
dipstick 04-24-2005, 10:05 AM It would seem to me - and I have just been a student specifically of the diecast business world for the past 10 years - that they are doing the same thing they do with every other line they have - small smittens are in the stores (wally, TRU, etc.) - Neary a complete line of anything and only about 1/10th of their full stable.
This results in even more companies dropping the lines - i.e. Target who really has nothing from RC2 in their aisles. KMart has the same problem ,although they DO have JLs but at almost a $1 more than market.
The rest of the product goes through the "supportors" of RC2 and those who can qualify for their wholesale criteria (or those who can fool them enough to qualify).
While this may make the product more desirable, how does the lack of availability work on the total sales? Evidently not well as the only carrying RC2 right now is their huge investments from the days when they RULED the NASCAR diecast world. I have commented on that previously.
Further, when companies like Jada come into the market and have literally taken all the extra space RC2 left, how long do you think it will be before a customer gets frustrated and buys other products?? I went to Wally to get JLs - nothing there so I bought 5 Jadas because they were..... I would venture a guess it happens more than anyone even realizes. (just using Jada as an example company)
Personally, when I have dollars burning a hole in my pocket I will buy something and if there aren't JLs around - I go for the next best things.
Customers like the hunt - but they HAVE TO BE IN THE STORES to be hunted. You can't "hunt" on the internet and get immediate gratification like you can when they are in your dirty little mitts.
What RC2 needs is someone to establish the brand - they are going to dilute its value like they have done with everything else in their stable. What happened to Ertls diecast line? What happened to RC2's diecast line?? Why are these Joyride castings just rehashes??
They need someone who IS a collector, knows the business and the mentality, knows what the folks are looking for and where they shop - evidently they don't have anyone with that expertise. There needs to be a balance between general availability and limited availabilty or you will never hook new people or keep existing people. Three years from now people will be saying - SO WHAT, just like they have done with their other lines which are also restricted.
They need to balance pieces and releases between the groups - and make it worth the customer engaging there products.
Dip
PS> If RC2 reads this - give me a call. I will venture a guess it would be refreshing for your company to get an outside perspective. I will be more than happy to give you a snapshot from a collector and a business standpoint.
McRooster 04-24-2005, 10:41 AM All I can say is RC2 is bad news for us JL collectors.I strongly suspect they will run the brand into the ground because they were the biggest competition they had.
Remember a few years back?.It was RC that had the license for Hot Rod magazine,car craft and a few others.They lost those rights because of they way they marketed them,plus the lack of castings.JL came along and just blew them away,with the licensing and all the great castings.The only way to get even was to buy them up and destroy them.I am so bummed that Mr.Lowe let this happen but money eventually ruled over all other factors.
I'm grateful for all the great things JL has done in the last 10 years and I'm really glad I have a ton of their prouduct in my collection.I knew there might come a day that something like this would happen and that the company wouldn't be around forever.It happened with topper,and it happened again,this time albeit for different reasons.
All we can really do is wait and see,but I think the great ride is over.
zeb41 04-24-2005, 11:10 AM McRooster,
It doesn't make good business sense for RC2 to buy Playing Mantis just so it can destroy it. Twenty million dollars is a lot of money to invest in the destruction of a product line that has been proven to be a good money maker. I don't know what's up with RC2, but I don't think it intends to destroy the JL line - not intentionally at least.
T/A Tom 04-24-2005, 11:30 AM No, Tom, only the greedy e-tailers who do not care about the collector take the WL's out. We have never pulled a WL out for seperate sale and never will. All the WL's we get go out to customers in their orders at no extra charge. We have sent out at least 20 WL's so far this year.
Please do not just throw out random generalizations and include us in with those kinds of online sellers.
Thank you
Sherry & Rob
The generalization (generalization does not mean 100%), mathematically & generally fits as a whole because a very large majority do so and one e-tailer, which is very cool & very nice, doesn't put a major amount of WLs to the collectors at store price. I'm looking at the overall big picture here based on the fact there are many other much larger and long established e-tailers. Not meant as slam....... it's just a simple fact.
Kenny Kaos 04-24-2005, 12:06 PM To Quote Gunn, "What's done is done"
This is a fairly controversial thread, I've started posting 3 times and decided not too. So if this post gets on the board it'll be a wonder. ;)
We can't go back... there's no way... unless robdog's prophecy is full filled and RC2 run it into the ground and someone, maybe TL purchases it from them.
If we could go back, would you really want too? Seems to me that the new brand manager never spoke to us, he'd rather visit the other board and reveal information. Seems to me many times I was told that Corporate PM didn't like too much info released to the boards anyhow. I remember one employee referring to it as a "Gag Order".
Isn't Tom Lowe is still in a position to "Persuade" these decisions? What about Mac Ragan? Both of which are in the know and yet they keep us in the blind, just like before. {sorry guys, I'm not slamming you just stating the facts}
In all honesty, if we could take it back, lets take it back to the hot rod AL Era. Theres a man who knew value of the collector community, and knew what they wanted. What about Art? another Great collector who catered to us.
As far as getting the product out in the stores, I honestly don't remember a time that the release was in the retail market when it was supposed to be. Frankly I got tired of the Hunt a long time ago, now its incedental {sp} at best, and if I really want something, I take an afternoon and look for it.
I agree with all you guys are saying, I'm just saying don't jump ship before its time too. RC2 needs your support to help make this transition a success.
I've always said that the best commodity RC2 has aquired is one they didn't pay for, you and me. But if they want to keep it, they sures heck start earning it.
just my opinion, thanks for listenting.
Jeff Koch 04-24-2005, 12:08 PM What RC2 needs is someone to establish the brand - they are going to dilute its value like they have done with everything else in their stable. They need someone who IS a collector, knows the business and the mentality, knows what the folks are looking for and where they shop - evidently they don't have anyone with that expertise.
Not true. They have that person. He replaced me at PM and is still working there. The question is, does RC2 have the wisdom to listen, consider and/or act on his expertise?
jk
zeb41 04-24-2005, 12:13 PM Not true. They have that person. He replaced me at PM and is still working there. The question is, does RC2 have the wisdom to listen, consider and/or act on his expertise?
jk
Jeff,
I agree. I guess it all boils down to whether or not they will listen to anyone.
triple20 04-24-2005, 12:22 PM I can understand Tom's generalization because in my observations Mac's Little Cars is the only etailer that ships WL's in orders that do not include sealed inners.
Burch ships WL's in his promo orders but I don't consider Ted an etailer because he dosen't carry random series of JL's.
:)
dipstick 04-24-2005, 02:27 PM Not true. They have that person. He replaced me at PM and is still working there. The question is, does RC2 have the wisdom to listen, consider and/or act on his expertise?
jk
Jeff -
I thought so too, but is the establishing of a brand mean "get rid of it"??? I would suspect he is establishing more of the subject matter then the venues by which they are sold and RC2 has a universal theory to support those who have supported them and everyone else well>??
Macs_Little_Car 04-24-2005, 03:49 PM The generalization (generalization does not mean 100%), mathematically & generally fits as a whole because a very large majority do so and one e-tailer, which is very cool & very nice, doesn't put a major amount of WLs to the collectors at store price. I'm looking at the overall big picture here based on the fact there are many other much larger and long established e-tailers. Not meant as slam....... it's just a simple fact.
Tom,
Yes, you are correct and I apologize... sometimes I just get a little aggravated about hearing that you can't get WL's anyway except to buy an inner...... makes me feel that everything Sherry and I have tried to do is for nothing if nobody realizes they don't have to pay a ransom or be somebody's buddy to get a chance at a WL in a JL order. Or. for that matter, if they don't know they don't have to pay double or triple retail if they do want just one car out of a set. Just a little touchy about that.
Rob
Atencio 04-24-2005, 03:55 PM The generalization (generalization does not mean 100%), mathematically & generally fits as a whole because a very large majority do so and one e-tailer, which is very cool & very nice, doesn't put a major amount of WLs to the collectors at store price. I'm looking at the overall big picture here based on the fact there are many other much larger and long established e-tailers. Not meant as slam....... it's just a simple fact.
I have gotten two White Lightnings from Diecastexpress this year which was a nice suprise because I have never seen one in a store. I would be more inclined to find that the internet dealers who try to earn our business would be more apt to throw a WL our way. The crap that my local WM and TRU have had on the pegs has forced me deal with e-tailers more often and despite a slightly higher price I would much rather deal with them and get everything I want instead of staring at the same stuff on the store pegs. I think the thing is you have to find those e-tailers who will treat you fair and support them with your business.
DaleFan 04-24-2005, 04:40 PM "...Not true. They have that person. He replaced me at PM and is still working there. The question is, does RC2 have the wisdom to listen, consider and/or act on his expertise? ..."
DITTO
superduty455 04-24-2005, 04:41 PM I was under the impression that RC2 had some clout at the pegs. I'm not seeing that. It used to be you would find these cars everywhere(RC2 that is). Now if I want a JL fix I have to go to wal-mart or Hobby Lobby and guess what? Neither of these stores has gotten anything in. Or, if they do it's the licensed monopoly, coke, etc...
A great example would be HOW 6. Where is it at?
Marketing seems to be the problem. I've finally gone away from looking in the stores, as Kenny said, it's all incidental now.
I order an inner through my hobby shop now and only of Firebirds. If a stray comes out from a different series I will request one here on the board an just pay the money. That dog don't hunt no more.
Chris
T/A Tom 04-24-2005, 05:24 PM Tom,
Yes, you are correct and I apologize... sometimes I just get a little aggravated about hearing that you can't get WL's anyway except to buy an inner...... makes me feel that everything Sherry and I have tried to do is for nothing if nobody realizes they don't have to pay a ransom or be somebody's buddy to get a chance at a WL in a JL order. Or. for that matter, if they don't know they don't have to pay double or triple retail if they do want just one car out of a set. Just a little touchy about that.
Rob
That's cool......you are very good about sending out whites.....but many many do not, as you know, big or little e-tailers. I just see this reduction of production as an probable overall very bad thing......IF the e-tailers still get the same amount of product to sell. What's the fun in trying the store's anymore??? The JLs in the store's have been almost non-existant the last 6 months and this new news actually sounds very discouraging to me, very discouraging. I personally think RC2 needs to to put together a near very near term group to address more where they are now and more so where they expect to be in the next year or so....otherwise I believe they could put some real damage into their JL customer base. The personal connection to the public has all but disappeared. It's been a year and RC2 should have something going to address some serious issues to just hold the current JL customer base, let alone build on it.
Pushin50 04-24-2005, 06:47 PM (1) If the company had been making money hand-over-fist then T. Lowe would not have sold it. Even J. Koch said in a previous post that at the (relatively low) cost that JL sold their cars for that he is surprised that they were able to keep the lights on. As expected, when RC2 bought the company they made some changes - for example, no 1-800 number and paid staff to discuss White Lightnings. I can't imagine Mattel having a 1-800 number for customers to call and chat about Treasure Hunts so it's no surprise (to me) that RC2 would not continue on with a 1-800 number. I've called RC2 before and they do answer their phones; if it is important enough for me to call on my dime (and BTW I have paid long-distance cellular so it doesn't actually "cost" me anything to call) then it is important enough for them to listen. RC2 has made / is making changes. We can vote with our dollars as to whether or not we like these changes.
(2) The opinions expressed by a few on this board may / may not reflect the opinions of the "loyal" customer base of Johnny Lightning collectors. There are many collectors who read this board who do not post. There are many collectors with access to the internet who do not read this board (either by choice or because they are not aware of its existence). There are many "theme" collectors (ie Monopoly, Coke, etc.) who collect JL because of the themes and do not seek out this board since they are not a "hardcore JL collector". In addition, there is a whole world of collectors who do not have access to the interent or choose not to use the internet. So while we post our opinions, complaints, suggestions, etc. publicly on this board, these thoughts may not be what the majority of JL collectors are feeling. Also, not every person who is expressing their opinion publicly has an equal vote (I refer to the analogy above about voting with your dollars). I ask this question for you to ponder (not to start an argument) - How many "votes" did you cast last year for JL product before the sale of JL to RC2? Did you buy only White Lightnings or only a few 3 for $5 KB clearance items? Have you been focusing on purchasing Toppers instead of newer Johnny Lightning cars? If so, your votes may have been diluted by those who purchased every JL set produced but are not on the internet telling us about their purchases.
(3) From the TCM quote
"My recent visit to RC2's Toy Fair showroom only heightened my fears about the fate of Johnny Lightning - I didn't see one person from the Playing Mantis group, and our tour guide spared less than 15 seconds on the Johnny Lightning line. In past visits, I've spent an hour or two with Playing Mantis executives."
Maybe someday we'll all wake up and realize THERE IS NO PLAYING MANTIS GROUP.
(4) Let's test out RC2's customer service thread - I just read it again and it looks like RC2 customer service came through with flying colors. But as soon as the news was "good" the posts on the thread stopped. Guess good news about "a company we love to hate" isn't newsworthy.
(5) "It's been a year and RC2 should have something going to address some serious issues to just hold the current JL customer base, let alone build on it." Okay, we have identified what we believe is a problem. Anybody have some constructive ideas on how to keep hold of the current JL customer base? If you had the resources of RC2 at your disposal, what would you do (specifically) to keep the JL customer happy? Keep in mind two things - first that RC2's goal is probably to sell their "regular" cars and so it wouldn't be in their best interest to focus primarily on the "chase collector" and secondly that RC2 cannot control the distribution practices of the resellers (either the mass market stores or e-retailers).
We are collectors (and smart ones at that!) so let's brainstorm and give RC2 some great ideas on what we want from them in order to keep our loyalty.
lenny 04-24-2005, 07:14 PM What I'm curious to find out is where this 'meteoric rise' in demand for their products came from? RC2 peg space at every retailer I visit is and has been on the decline ever since most of the majors got stuck with all the gold plated, repainted, 'limited edition' 50th Anniv of NASCAR crud from 1998. Amazingly (and I'm not making this up) some of it was STILL on a shelf at a local TRU a little over a year ago... Outside of some American Muscle, Thomas the Tank, and some occasional Ertl farm stuff, their products are largely absent from Target, K-Mart and Wal-Mart (at least in my area). As long as lame ideas like Texas-Hold-Em and Norman Rockwell keep emanating from the bowels of the marketing department, I don't see their 'vision' of constant winners taking shape any time soon.
Much has been said about the slot cars either being something RC2 didn't really want. Whether that's true or not, only RC2 execs really know. What I know is that this is an area that they could really exploit and grow, not whither and die...
Pushin50 04-24-2005, 07:33 PM Lenny,
I'm not sure if the Texas-Hold-Em and Norman Rockwell are ideas from the former company that have just now come to fruition or whether they are part of the "new vision." I'm guessing (don't have any facts to back this up) that these programs are some of the last of the PM-era programs. And if I remember correctly, about 1998 is when all of the diecast world hit a brick wall and demand dropped significantly for diecast of all kinds and has continued on a downhill slide ever since.
From Mac's Little Cars post ... X-Traction R3 Slot cars in June, X-Traction Dukes of Hazzard in September, X-Traction R5 Mopar Muscle in November, Thunderjet 500 Mopar Madness in June, Thunderjet 10 Bowtie Brigade in November.
So what is RC2 not producing in the area of slot cars that you think they should be doing, Lenny? Maybe if we focused on telling them our positive ideas (rather than criticizing) then they might be more willing to listen.
T/A Tom 04-24-2005, 07:43 PM Keep in mind two things - first that RC2's goal is probably to sell their "regular" cars and so it wouldn't be in their best interest to focus primarily on the "chase collector" and secondly that RC2 cannot control the distribution practices of the resellers (either the mass market stores or e-retailers).
We are collectors (and smart ones at that!) so let's brainstorm and give RC2 some great ideas on what we want from them in order to keep our loyalty.
I was not trying to single out chase cars. No, RC2 can't control distribution BUT they can try to control purchasing........more sales/more sales/more sales........reducing the production sounds like an admission to "We just can't sell very many so screw it", rather than trying to beef up sales.
Granted, I would think it would be difficult to sell the Texas Hold Em & other similar tampoed items like this so maybe they should re-think these type of releases. The Monopoly was kinda cool because of the little game pieces but try to use the Texas Hold Em cars as pot money in poker gambling.....it just doesn't work. Also, pocker has become popular and extremely popular with the teenagers. IF they tought they would be interested in them that was a very wrong assumption.
How do they beef up sales seems to be the key...as is with any business that wants to grow, a far different goal than reducing the amount of product sold. Should GM just say "Ah, the heck with it, let's just sell less cause we can't sell more"...or should they try to find a way to sell more....to make more $$$...which is the goal for any company.
Pushin50 04-24-2005, 07:53 PM So, Tom, what could / should RC2 do that would encourage you to purchase more of the regular Johnny Lightning cars? That way they wouldn't have to cut production (and cutting production is probably preferable to having major Dumpfests to Dollar Tree like when PM couldn't find a way to sell more of the cars that were already produced). RC2 is a business and I'm sure if they thought there was something reasonable that they could do so that you would buy more they would do that rather than cut production.
If the number of eligible drivers decreased significantly over 5 or 6 years in a row then I'm pretty sure that GM would produce fewer cars overall. And I can bet that if the price of gas stays as high as it is now that GM will produce fewer number of gas guzzlers than they did last year. BTW.... GM just posted a $1.1 billion loss last quarter (the worst in 13 years) so they may be making some slight adjustments to their production strategy for the remainder of the year.
T/A Tom 04-24-2005, 08:00 PM So, Tom, what could / should RC2 do that would encourage you to purchase more of the regular Johnny Lightning cars? That way they wouldn't have to cut production (and cutting production is probably preferable to having major Dumpfests to Dollar Tree like when PM couldn't find a way to sell more of the cars that were already produced). RC2 is a business and I'm sure if they thought there was something reasonable that they could do so that you would buy more they would do that rather than cut production.
If the number of eligible drivers decreased significantly over 5 or 6 years in a row then I'm pretty sure that GM would produce fewer cars overall. And I can bet that if the price of gas stays as high as it is now that GM will produce fewer number of gas guzzlers than they did last year. BTW.... GM just posted a $1.1 billion loss last quarter (the worst in 13 years) so they may be making some slight adjustments to their production strategy for the remainder of the year.
I really don't know exactly as I have no background in diecast BUT common sense says reducing your sales reduces your income. HWs mass produces high numbers and sells the crap out of diecast. I do know CREATIVITY is a virture that can do anyone wonders, individual or corporate.
The people who post here "statistically" should be a super sample of the over the general population that really cares of what people expect. Besides, I would think ideas presented here are the only feedback they will get anyway. Also, lurkers who don't post techically don't care by virtue of a no post....thefore their thinking does not really apply anyway.
Your senerio of "If the number of eligible drivers decreased significantly over 5 or 6 years in a row" is not a good one as the population of the world has never decreased. Design something the public wants and desires to own/purchase is a very good start.....and they will come....1/64th diecast or 1:1. Of course quality counts, which has basically already been there.
triple20 04-24-2005, 08:00 PM (1) If the company had been making money hand-over-fist then T. Lowe would not have sold it. Even J. Koch said in a previous post that at the (relatively low) cost that JL sold their cars for that he is surprised that they were able to keep the lights on. As expected, when RC2 bought the company they made some changes - for example, no 1-800 number and paid staff to discuss White Lightnings. I can't imagine Mattel having a 1-800 number for customers to call and chat about Treasure Hunts so it's no surprise (to me) that RC2 would not continue on with a 1-800 number. I've called RC2 before and they do answer their phones; if it is important enough for me to call on my dime (and BTW I have paid long-distance cellular so it doesn't actually "cost" me anything to call) then it is important enough for them to listen. RC2 has made / is making changes. We can vote with our dollars as to whether or not we like these changes.
(2) The opinions expressed by a few on this board may / may not reflect the opinions of the "loyal" customer base of Johnny Lightning collectors. There are many collectors who read this board who do not post. There are many collectors with access to the internet who do not read this board (either by choice or because they are not aware of its existence). There are many "theme" collectors (ie Monopoly, Coke, etc.) who collect JL because of the themes and do not seek out this board since they are not a "hardcore JL collector". In addition, there is a whole world of collectors who do not have access to the interent or choose not to use the internet. So while we post our opinions, complaints, suggestions, etc. publicly on this board, these thoughts may not be what the majority of JL collectors are feeling. Also, not every person who is expressing their opinion publicly has an equal vote (I refer to the analogy above about voting with your dollars). I ask this question for you to ponder (not to start an argument) - How many "votes" did you cast last year for JL product before the sale of JL to RC2? Did you buy only White Lightnings or only a few 3 for $5 KB clearance items? Have you been focusing on purchasing Toppers instead of newer Johnny Lightning cars? If so, your votes may have been diluted by those who purchased every JL set produced but are not on the internet telling us about their purchases.
(3) From the TCM quote
"My recent visit to RC2's Toy Fair showroom only heightened my fears about the fate of Johnny Lightning - I didn't see one person from the Playing Mantis group, and our tour guide spared less than 15 seconds on the Johnny Lightning line. In past visits, I've spent an hour or two with Playing Mantis executives."
Maybe someday we'll all wake up and realize THERE IS NO PLAYING MANTIS GROUP.
(4) Let's test out RC2's customer service thread - I just read it again and it looks like RC2 customer service came through with flying colors. But as soon as the news was "good" the posts on the thread stopped. Guess good news about "a company we love to hate" isn't newsworthy.
(5) "It's been a year and RC2 should have something going to address some serious issues to just hold the current JL customer base, let alone build on it." Okay, we have identified what we believe is a problem. Anybody have some constructive ideas on how to keep hold of the current JL customer base? If you had the resources of RC2 at your disposal, what would you do (specifically) to keep the JL customer happy? Keep in mind two things - first that RC2's goal is probably to sell their "regular" cars and so it wouldn't be in their best interest to focus primarily on the "chase collector" and secondly that RC2 cannot control the distribution practices of the resellers (either the mass market stores or e-retailers).
We are collectors (and smart ones at that!) so let's brainstorm and give RC2 some great ideas on what we want from them in order to keep our loyalty.
I find your posts very interesting,you seem like an intelligent individual who knows the system...thanks for your input,it almost sounds like you could work for RC2:cool:
Pushin50 04-24-2005, 08:18 PM Tom,
Yes you are right! Reducing your production numbers seems in contradiction to what you would expect a company to do to increase income but so that I can make my point let me throw out some numbers:
Produce 100 widgets at a cost of $2 each.
Sell 50 widgets at $3 each then dump the rest at $1 each
Revenue $200; Costs $200; Profit $0
Produce 50 widgets at a cost of $2 each
Sell 50 widgets at $3 each
Revenue $150; Costs $100; Profit $50
Now I've kept my numbers simple. Of course fixed costs would make the cost of widgets slightly higher at a lower production number but the selling/administrative costs would increase when you sell 100 widgets versus 50 widgets. So I've kept the numbers simple to demonstrate my point.
"If the number of eligible drivers decreased significantly over 5 or 6 years in a row" could be the result of the goverment raising the age to obtain a drivers license or removing drivers licenses from people over 50 (God forbid!) rather than a population change.
And Hot Wheels also decreases their production numbers when product does not consistently sell. If memory serves, they have at times in the past reduced the number of units of some RLC cars. And they have some cars (RLC Selections) that they produce only what is ordered by the consumer.
I believe you hit the nail right on the head, though, Tom when you mentionned the word "creativity". And there is certainly a multitude of talented individuals on this board..... so the Question becomes "What creative suggestions can we give RC2 that would help them increase their sales rather than decrease their production?" What ideas do you have for RC2? We have identified the "problem" so instead of rehashing the problem and attacking the manufacturer why don't we give them our creative suggestions for improvement. What could/should RC2 do that would encourage you to purchase more Johnny Lightning?
T/A Tom 04-24-2005, 08:23 PM Tom,
Yes you are right! Reducing your production numbers seems in contradiction to what you would expect a company to do to increase income but so that I can make my point let me throw out some numbers:
Produce 100 widgets at a cost of $2 each.
Sell 50 widgets at $3 each then dump the rest at $1 each
Revenue $200; Costs $200; Profit $0
Produce 50 widgets at a cost of $2 each
Sell 50 widgets at $3 each
Revenue $150; Costs $100; Profit $50
Very simple basic mathematics, that I, as a USAF mathematican am fully aware of. BUT if you can produce an item that sells these figures become a non-player in the corporate money equation. Find a way to get the 100 to sell for $3 each. Profit = $100.....my point. Then find a way to get 150 to sell, then 200 to sell. Increase your sales/profit.
Atencio 04-24-2005, 08:31 PM Reducing sales may not increase income but it may increase profit. RC2 needs to focus on what is being left on the pegs and what is selling. One simple way to do this is to look at what is selling on Ebay or what the e-tailers are selling a lot of. RC2 then needs to cut back on what is not selling. This could have the impact of reduced sales due to impulse buying but would prevent surplus stock from ending up in clearing houses at a fraction of the cost. I think JL needs to focus on what its buyers want, to stay in their niche. They will never be able to compete in the mass market with HW's and MB simply because of the price difference.
lenny 04-24-2005, 08:32 PM Lenny,
I'm not sure if the Texas-Hold-Em and Norman Rockwell are ideas from the former company that have just now come to fruition or whether they are part of the "new vision." I'm guessing (don't have any facts to back this up) that these programs are some of the last of the PM-era programs. And if I remember correctly, about 1998 is when all of the diecast world hit a brick wall and demand dropped significantly for diecast of all kinds and has continued on a downhill slide ever since.
From Mac's Little Cars post ... X-Traction R3 Slot cars in June, X-Traction Dukes of Hazzard in September, X-Traction R5 Mopar Muscle in November, Thunderjet 500 Mopar Madness in June, Thunderjet 10 Bowtie Brigade in November.
So what is RC2 not producing in the area of slot cars that you think they should be doing, Lenny? Maybe if we focused on telling them our positive ideas (rather than criticizing) then they might be more willing to listen.
Since you took this opportunity to criticize my post, I'll expound on this for your benefit...
As an example of 'brain-dead' marketing I present to you: Resto Rods - Cancelled. A series that held great potential that maybe also a hold over from the pre-RC2 days. Instead we get Norman Rockwell.
You rattled off the slot releases that RC2 'has planned', all of which were planned pre-RC2. What you failed to mention (and maybe didn't realize) is that there were 2 highly anticipated slot releases that were cancelled in the past 2 months: VW's and 40th Anniv of Mustangs. Cited as the reason for cancellation was 'licensing issues'. Now in the case of VW I can maybe buy that, VW can be difficult to work with. But in the case of Mustangs, there are already JL Mustang slot cars, RC2 already produces other Mustang product. It seems that 'licensing issues' is a nice broad term they like to throw out whenever something gets the axe... Maybe it was also a case of not wanting to invest more money in new molds and to just milk the line for what it's worth...
Now lets look at the slot releases that are due to hit soon: X-Traction 3 and Mopar Madness...
X-Traction 3 is a 6 car set with the following cars:
Delorean Time Machine (new mold)
1946 Ford (new mold)
1957 Vette (repaint)
1957 Nomad (repaint)
Javelin (repaint)
Buick GN (repaint)
Mopar Madness is a 6 car set with 2 repaints each of essentially 3 existing molds:
1970 Plymouth Cuda/Hemi Cuda
1970 Challenger/TA
1969 Charger
They've shown us 2 cars from Dukes of Hazzard, which curiously looks like a T-Jet cop car and an X-Traction Charger. That in itself raises a few eyebrows since they've never had a 'multi chassis' release before, and Dukes of Hazzard is supposed to be an X-Trac release.
As for the later releases like X-Trac Mopars and T-Jet Bowties, I guess we'll see if these are repaints of existing molds or if RC2 will put forth any capital to produce new molds and expand the line, which is my point. Are we destined for constant repaints or will RC2 actually grow the line?
If it's a matter of cost, I have it on good authority that to create new tooling for a slot body costs between $5,000 and $10,000, it's all done overseas. These costs are relatively cheap compared to trying to do a hardened steel injection mold with slides in the US. These costs can be slowly amortized over the course of a few years without feeding us a steady diet of the same repainted molds. Not counting Pullbacks, the Charger in Mopar Madness will have been repainted 6 times now, the Challengers and Cudas probably the same.
When it was announced that RC2 was buying PM last year, the hopeful among us actually looked to RC2's extensive entertainment licensing portfolio. Licenses that they have include Fast & Furious, Gone in 60 Seconds (the first movie), George Barris and many others.
I've personally emailed them dozens of ideas, I guess we'll see if any are ever produced.
T/A Tom 04-24-2005, 08:33 PM Reducing sales may not increase income but it may increase profit. RC2 needs to focus on what is being left on the pegs and what is selling. One simple way to do this is to look at what is selling on eBay (http://www.dpbolvw.net/click-1606754-2202639)http://www.awltovhc.com/image-1606754-2202639 or what the e-tailers are selling a lot of. RC2 then needs to cut back on what is not selling. This could have the impact of reduced sales due to impulse buying but would prevent surplus stock from ending up in clearing houses at a fraction of the cost. I think JL needs to focus on what its buyers want, to stay in their niche. They will never be able to compete in the mass market with HW's and MB simply because of the price difference.
By George you got it, exactly, don't make the stuff that doesn't sell, make stuff that sells and sell more of them. There have been too many HIT & MISSES recently. They need a string of HITS. "Creativity" to maximize sales and profits....don't reduce and go backwards.....just sounds like your giving up to me. Yea, maybe it HAS to be done for awhile BUT the true desired goal has to be what I have been talking about.
Jeff Koch 04-24-2005, 08:42 PM I would suspect he is establishing more of the subject matter then the venues by which they are sold and RC2 has a universal theory to support those who have supported them and everyone else well>??
I'm not sure I understand the second half of this, but there's only so much one person can do. And I will wager that with 95 percent of the original company gone now, he's doing the work of several people just to keep his head above water. I won't pretend to know what's going on in IL, or how it all works over there--I have no inside line anymore--but I will theorize that at the rate WalMart keeps growing, it may be possible that they don't NEED Target to keep JL afloat. Maybe the distributors are doing well enough that they are making up part of the shortfall (which means folks are wising up to the concept of buying entire inners direct, thus getting everything they want, getting some pieces for the trade pile PLUS increasing your chances of findign a WL). One distributor told me that Target not carrying JL was the best thing to happen to him. Plus those 1:18 scale cars are a lot higher profit margin items than 1:64 ... and Ertl has great distribution with those. A good 1:18 run will go a long way toward paying down any shortfalls elsewhere.
And, there are some new castings being drizzled into that Joyride series--I picked up an Acura RSX the other day.
jk
Puppycat 04-24-2005, 08:45 PM As a small time buyer and seller of JL cars, in my best opinion, it should be apparent which cars will be the best sellers. While I understand that there is a market niche for the heavily decalled cars (Coke, Rockwells..etc) these cars do not move in the same volumes as others. Example, at the 2 TRUs that I frequent, and I would suspect this theme is not uncommon, the shelves are cluttered with unsold Coke and Marvels and Frightin'. Yet they continue to produce more of these, which in turn leads to them being discounted or sold at Dollar General.
It is all I can do to find the Pontiacs, Mustangs and Mopars. They are usually sold off the shelves in a matter of hours or at worst days. Regardless of where one buys their cars I still argue that those that buy diecast are usually into full scale as well. Therefore the majority of effort, time and production should be dedicated to these cars.
As a seller I generally have no problem moving just about any muscle car, tow trucks, or specific classics (Nomads, 57 Chevy). Street Freaks (except Zingers) and Toppers not so much luck.
This is not meant to offend anyone just my opinion. Thanks for the time.
carnut2256 04-24-2005, 09:27 PM I have to agree, hunting the pegs just isn't fun anymore. Very little coming through these days :(
Pushin50 04-25-2005, 03:15 AM From Tom's post above: "The people who post here "statistically" should be a super sample of the over the general population that really cares of what people expect. Besides, I would think ideas presented here are the only feedback they will get anyway. Also, lurkers who don't post techically don't care by virtue of a no post....thefore their thinking does not really apply anyway."
********************************
(1) As you know, Tom, a statistical population does not refer to a group of people; instead it refers to a set of measurements. A sample is a subset of data selected from a population.
Since the probability of observing a particular sample depends on how the sample was selected, the sampling procedure plays an important role in statistical inference.
"Self-selection" by considering ONLY those Hobbytalk members who chose to post on a given day about a given topic does not lead to a representative sample. Instead, a PROBABILITY sample selection method (ie simple random, stratified, cluster) would be a much more appropriate choice to obtain a representative sample in my opinion.
(2) Feedback from the Hobbytalk Board is probably not the only feedback that RC2 will get. I remember one dealer saying a year or two ago that RC2 sent out a survey asking for feedback. RC2 probably solicits feedback from their direct customers (ie mass market stores, distributors, dealers).
As you probably know, behavioral statistics can measure "intent" and "action". While people may say they will buy XYZ types of Johnny Lightning, it is the mass market stores and dealers/distributors who have first-hand knowledge of what JL customers ACTUALLY purchase.
I'm guessing that information about the actual buying patterns of JL customers carries more weight with RC2 than what Hobbytalk posters say they will / will not do especially when some Hobbytalk posters proudly say they buy little or no new JL at all.
********************************
Lenny, I wasn't in any way attempting to criticize you. I was just asking for specifics about suggestions for improvements in slot cars. And I would be the first one to agree with you about the Resto Rods. We'll probably never know why they were cancelled (or delayed). Sometimes manufacturer's cancellations (like JL's Resto Rods and HW's Hall of Fame series) seem like marketing mistakes to me but then again I'm not privy to all the information that the manufacturers have when they make the decisions. Regarding slot cars, it sounds like you have some solid ideas you have contacted them with and I hope that they consider what you have said. I guess time will tell about the slot car line.
Thanks for the information about the slots; it has peaked my interest. I'll admit that I'm not too familiar with slots but you've got me curious now. Guess I'll pick up a JL slot car or two and check them out.
*******************************
The comment about "impulse buying" made me think..... do you think all impulse buying is done only in the mass market stores? Or do you think some "impulse buying" occurs on the internet (ie someone surfing an auction service late at night and finds an auction ending in 5 minutes and makes a quick decision to purchase; pays by paypal (instant payment) and then gets their item 2-3 days later by priority mail). And when you make the "impulse purchase" in the mass market store, what is it about the product that causes you to purchase? Did you have "mad money" in your pocket you planned on spending and chose the best diecast of what was available or was there something special about the item that made you spend the grocery money you had earmarked for a steak and potato (so that you now have to eat beans and rice for dinner)?
T/A Tom 04-25-2005, 05:38 AM From Tom's post above: "The people who post here "statistically" should be a super sample of the over the general population that really cares of what people expect. Besides, I would think ideas presented here are the only feedback they will get anyway. Also, lurkers who don't post techically don't care by virtue of a no post....thefore their thinking does not really apply anyway."
********************************
(1) As you know, Tom, a statistical population does not refer to a group of people; instead it refers to a set of measurements. A sample is a subset of data selected from a population.
Since the probability of observing a particular sample depends on how the sample was selected, the sampling procedure plays an important role in statistical inference.
"Self-selection" by considering ONLY those Hobbytalk members who chose to post on a given day about a given topic does not lead to a representative sample. Instead, a PROBABILITY sample selection method (ie simple random, stratified, cluster) would be a much more appropriate choice to obtain a representative sample in my opinion.
(2) Feedback from the Hobbytalk Board is probably not the only feedback that RC2 will get. I remember one dealer saying a year or two ago that RC2 sent out a survey asking for feedback. RC2 probably solicits feedback from their direct customers (ie mass market stores, distributors, dealers).
As you probably know, behavioral statistics can measure "intent" and "action". While people may say they will buy XYZ types of Johnny Lightning, it is the mass market stores and dealers/distributors who have first-hand knowledge of what JL customers ACTUALLY purchase.
I'm guessing that information about the actual buying patterns of JL customers carries more weight with RC2 than what Hobbytalk posters say they will / will not do especially when some Hobbytalk posters proudly say they buy little or no new JL at all.
********************************
Lenny, I wasn't in any way attempting to criticize you. I was just asking for specifics about suggestions for improvements in slot cars. And I would be the first one to agree with you about the Resto Rods. We'll probably never know why they were cancelled (or delayed). Sometimes manufacturer's cancellations (like JL's Resto Rods and HW's Hall of Fame series) seem like marketing mistakes to me but then again I'm not privy to all the information that the manufacturers have when they make the decisions. Regarding slot cars, it sounds like you have some solid ideas you have contacted them with and I hope that they consider what you have said. I guess time will tell about the slot car line.
Thanks for the information about the slots; it has peaked my interest. I'll admit that I'm not too familiar with slots but you've got me curious now. Guess I'll pick up a JL slot car or two and check them out.
*******************************
The comment about "impulse buying" made me think..... do you think all impulse buying is done only in the mass market stores? Or do you think some "impulse buying" occurs on the internet (ie someone surfing an auction service late at night and finds an auction ending in 5 minutes and makes a quick decision to purchase; pays by paypal (instant payment) and then gets their item 2-3 days later by priority mail). And when you make the "impulse purchase" in the mass market store, what is it about the product that causes you to purchase? Did you have "mad money" in your pocket you planned on spending and chose the best diecast of what was available or was there something special about the item that made you spend the grocery money you had earmarked for a steak and potato (so that you now have to eat beans and rice for dinner)?
If all you can get are the people here that should be considered a good sample. Here's why. The people here are not selected by a certain age/group/background/tastes etc. People randomly decide to post therefore this would be considered a random sample "group" of the whole population and therefore a valid sample. The sampling procedure must be random and the people who decide to post don't post just because they are of a certain type. They are not selected, they randomly choose to post, therefore that is considered valid. They are not asked to post based on their beliefs. They post because they randomly want to. I guessing ya need to brush up a little more on the internet dude....and how sampling applies to this particular example. Unless you have a strong math background and deal with it every day, which you have not indicated, I would guess there is a high probability you picked (ie simple random, stratified, cluster) these terms off the internet. Those are terms only someone who has been very close to math would probably know about. The selection process is random by virtute of the fact anyone that wants to post can post. No certain one type of collector is asked to post establishing a virtual representative sample of the overall population. Additionally, the only people who want to participate by posting is all they are going to get anyway. When a caller calls to sample, IF they don't thay are not included, just as a non poster. You sample what you can get without selecting a certain type. We don't select who joins/posts so therefore I would strongly believe we get a good cross-section of the general population/public.
lenny 04-25-2005, 07:08 AM Pushin50,
your profile is completely blank, you wouldn't happen to be an RC2 employee posing as an 'interested collector', would you?
carnut2256 04-25-2005, 07:28 AM Tom, this dude uses market specific terminology, which makes me inclined to believe that he knows exactly what he's talking about. Sounds like he does this for a living or has seriously studied it. I would also have to agree with his reasoning on market researching and "sampling". What we here say we will buy does not necessarily translate into what we actually do buy. We aren't as "random" a sample as you might think either.
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