Looking at most offerings from Atlas, 2 rail versions are typically $5 to $10 more than their 3 rail counterparts and I was just curious as to the reasoning behind this.
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I can't figure it out. The trucks are the same amount of parts, just different wheels. the 3-rail couplers are ore complex and have more parts than 2 rail. It could be two things: first the market bears it, or second, more likely, there are less 2-rail ones sold, so they charge more to cover the fewer boxes and labeling and keeping track of a smaller number of units.
I think the difference is in the sintered wheels they use for 3 rail trucks. I believe those wheels cost a LOT less to produce than the wheels used for 2 rail trucks. I don't think it is the number produced because Atlas has stated that sometimes the 2 rail models out sell the 3 rail versions. Not all the time but it happens once in a while.
Opinion. I certainly could be wrong.
It's the same reason that Diesel, which used to cost 40% of what gasoline cost, now costs 20% more than gasoline. "BECAUSE THEY CAN."
I don't think any company in a free market economy can arbitrarily overprice their product for long. If they don't have current competition, they soon will when someone else realizes how much profit they are making. This second mfg will think, I can make and sell it for a bit less and still make a lot of money, and will go into business as a competitor. The original company would then have to reduce their prices to meet the competition etc.
As for the wheel cost, that may be the case. I don't know much about how sintered wheels are made. If they are cast and Atlas has a mold, them maybe they are cheaper than machining the others.
Economy of scale.
They make many more three rail engines than they do two rail.
The two rail cost more per engine made.
That's my guess.
Bill
I always thought it was because they sell more 3-rail than 2-rail and consider 2-rail a hassle.
I am sure they would rather just make all 3 -rail items and leave it to the 2-railers to change everything themselves think of the money they would save in production.
I change everything to two rail using Intermountain wheels and Kadees anyway, I hate doing it and wasting parts, money, and time, but you have to do what you have to do.
I could be 100% wrong on the above, it's only what I think. Roo.
prrjim posted:As for the wheel cost, that may be the case. I don't know much about how sintered wheels are made. If they are cast and Atlas has a mold, them maybe they are cheaper than machining the others.
Sintering involves compression-molding powdered iron. I once asked an Atlas rep at York why the shiny wheelsets seen on 2-rail trucks aren't done in 3-rail. The answer was the larger flanges don't hold up to the machining process.
(I don't have an explanation for why Menards' wheelsets are so shiny--upon close examination, those don't appear to be machined)
---PCJ
Perhaps Atlas could step up and actually answer this?
I doubt Atlas or any company large or small including when I was in business is going to make public their decisions on how they run their business and why should they.
They could come up with some story that sounds good from their public relations man and leave it at that, but boardroom decisions on how they make profits don't think so.
I'm just glad they make scale items that you can change to suit yourself I don't want to build everything from scratch or kits.
Roo.
Will Ebbert posted:Looking at most offerings from Atlas, 2 rail versions are typically $5 to $10 more than their 3 rail counterparts and I was just curious as to the reasoning behind this.
demand and supply
prrjim posted:I can't figure it out. The trucks are the same amount of parts, just different wheels. the 3-rail couplers are ore complex and have more parts than 2 rail. It could be two things: first the market bears it, or second, more likely, there are less 2-rail ones sold, so they charge more to cover the fewer boxes and labeling and keeping track of a smaller number of units.
Plus, the 2-rail wheelsets have to be insulated (extra cost) and Kadee or equivalent couplers assembled and installed on the underframe (extra labor costs.)
These costs may be fractions of a cent in the bill of materials, but they add up.
Rusty
There is a vast international conspiracy behind this decision making........
mwb posted:There is a vast international conspiracy behind this decision making........
Blame it on the Chinese 
As stated above, more 3rail r-t-r trains are sold than the 2rail trains.
Limey posted:Perhaps Atlas could step up and actually answer this?
Atlas seems to have no comment on anything right now since all the locomotive schedules got pushed out a year or so. They were a no show at the Chicago meet this year too.
At The Public Delivery Track the price difference is $ 3.00.
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Bear in mind the first entry into to the O gauge market for Atlas was the 3 rail cylindrical hopper, 2 rail was not initially offered, I assume they wanted to see how well the new product would sell before making a further commitment [tooling for couplers/boxes and 2 rail wheel sets] to producing a 2 Rail product. Notice on the current shipping schedule there is only one car listed as coming in, probably late May shipping to dealers [coil car] I am sure Atlas will be at York to answer all these questions. JMO
rex desilets posted:mwb posted:There is a vast international conspiracy behind this decision making........
Blame it on the Chinese
Too easy.....
It's the Rosicrusians.
The solution to issues of price and sub-par quality (zinc pest and poor functioning scale couplers) is free market competition and control over the production process. I'd love to see Kadee enter the O scale freight car business and do what Sunset/GGD has done for locomotives and passenger cars- provide alternatives. As a side note Kadee couplers, HO trucks & freight cars are designed and manufactured in the USA . Whether the O scale market is deep enough to warrant the investment I don't know.
To me, 2 rails are more prototypical then 3 rails here in the states. In England they have 3 rails which is more prototypical to them. Just saying.
I guess someone on the forum could go into the business, correctly price their products, report to the forum on costing basis, and show Atlas how it is done.
