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Now, they have taken the first steps to obsoleting the TMCC, this May (a week!)   "Obsolete" can be an adjective or a verb- Lionel is using it as a verb:

verb
US
  1. 1.
    cause (a product or idea) to be or become obsolete by replacing it with something new.
    "we're trying to stimulate the business by obsoleting last year's designs"

 

How many times will their customer base "buy" Lionel's latest system as THE FUTURE of train control??   They must hope that their future buyers don't look at history.  Why purchase a new Legacy locomotive, at $ 1000, or Legacy system, when history says it too will be eliminated, like TMCC??  And with no hope of longevity- maybe ten years- maybe less?? 

Is LionChief really going to last??  What happens when my LionChief Plus engines start to age and need boards, or parts?? 

Service: Will Lionel continue to send us to "slave" parts distributors with impossible to work online websites?  And no stock?  

 

Here is a variation of a post I put up on another thread.  Here are some thoughts on marketing:

Lionel means ELECTRIC TRAINS.   Not plastic mono-track cars, or Nascar collectibles.

They should focus on making SOME good, basic, traditional size, conventionally-run O Gauge trains at reasonable prices- say $ 150 for engines, with electronic reverse board, lights and basic smoke.  Enough to please a newbie. 

Put these standard O Gauge engines in the sets, not LionChief as they do now.  Include a 40-watt transformer in the sets.   I don't think Set buyers are likely to "upgrade" to LC+- too little difference between LC and LC+ is seen by the average customer- the differences are all hidden for the most part.  While I see a difference in power, performance and sound of LC+ over standard LC I don't think the average set buyer will.  Drop the conventional LC engines altogether.  From transformer control to walkaround, handheld control to LC Plus IS a big upgrade. 

If the sets revert to conventional control, then set buyers already HAVE the transformer in the set to run a LionChief Plus loco when they upgrade.  Lionel can then keep and further develop the LionChief Plus line, with enough continuity that LHS buy them without fear that they will be obsoleted and have to be sold at a loss. LC+ available at the current price levels is fine.  

AND- how many set buyers are going to buy a Legacy engine??  To make the jump from LC??  Casual hobbyists buy an engine that costs 4X what the whole set costs?  No- LC+ has a long-term market IF Lionel lets it be so.Then some semi scale and scale stuff, but never over $ 1000 for a locomotive.

-Focus on QUALITY.  When you buy one- the thing is perfect.  Period. 

- Rethink Built To Order (BTO).  This stuff is too hard to buy right now.  Order 9 months ahead??  And then- you might not even produce it??  What do you mean there are no PRR locomotives this year??    Only old guys who are looking for something specific will put up with it, NOT the general market. BTO is a terrible business model for the average consumer.  I don't get it- no other hobby is like this.  Do you think they intro new whiz-bang RC planes with a 9-month pre-order wait??

- your LHS can't afford to carry many Lionel engines and rolling stock, either. The distributors either.  Margins are paper thin.  Costs are way high.

Due to all this- everybody has to go to the Internet except when they need some lychen or balsa wood.  The hobby has to support the distributors so they can afford to STOCK.  Put margins in so LHS can afford to sell the stuff and not drive everybody online. 

Vision Line??  Quit spending research dollars and time on it.  Current development is enough to attract anybody!  Now the big feature on the Niagara is that the thing simulates picking up water on the fly??   ANOTHER smoke generator to cause a service rerurn??  Cmon!!!  Few are willing to pay for these engines at near $ 2000. 

All this said- I have several LC+ engines- and all are perfect.  Lionel is getting some things right!!  And- I see things getting better.  But it's a HUGE line- it needs to be trimmed.

Last edited by Mike Wyatt
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The basic answer to the question of what Lionel is doing (or not doing) is they are implementing decsions based on some business plan of theirs. I suspect they felt that ERR was only promoting "old technology" and costing them more than it was worth, so shut it down, and I am sure the marketing geniuses told them that in doing so it will 'convince' people to buy newer legacy and rc+ series trains over converting older models. It is mostly about removing what I suspect they see as a cost (not agreeing), and I also suspect it is about trying to get people to buy newer engines since that is where they make their money (why? they could have tried to sell ERR to a third party firm while agreeing to ship them boards, or even spun it off).

It does make me wonder how long the support for Third rail and Atlas will happen with TMCC boards, as others have pointed out in the other threads, if they feel ERR was a cost and a benefit to drop it, kind of wonder once the contracts end with Atlas and Third Rail if they even will produce TMCC boards, since that is effectively the biggest cost in terms of ERR (yeah, having support for people using the kits, warranty support, etc would be a cost, but not the biggest one).  As they say, only time will tell, and at that point people have decisions to make which way they will go with all this, whether they go the DCS route with older engines and so forth.

 

If people are really upset about this, then the best way is to let Lionel know through not buying their products, no one in this hobby owes Lionel any fealty or in the idea that somehow we have a duty to buy from them to keep the hobby going, if we don't like what they are doing with their products or business, don't buy them *shrug*, it is the one power we have over any company. 

"I suspect they felt that ERR was only promoting "old technology" and costing them more than it was worth, so shut it down."

Let's not forget perhaps the key reason why ERR is closing.  It's sole key employee is 80+ and leaving the company, and no replacement is possible. This is about ERR closing.  Not parts availability or upgrades in general.

Lionel may have had only days to weeks notice.  We don't know.  There are now weeks to months for them to come up with a plan to responsd to consumer complaints and concerns, which will be numerous, passionate and, hopefully,  civil.  I know I wrote to them.  You all should to, if you care.  They will do something reasonable and feasible, because that's what sensible people do.

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