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Post by Deleted on Sept 15, 2014 12:51:49 GMT -8
A few months ago, it was debated on this forum about MRC acquiring Model Power.
My friend, who used to own a bricks and mortar hobby shop, received an e-mail today from MRC. He must still be in their system as a dealer. Here is the direct quote from the MRC rep.
" We have acquired much of Model Power’s inventory"
What caught my eye was the word inventory, not we have acquired the Model Power product line. It would seem, that MRC bought up much or what was left on the Model Power shelves, but not the product line.
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Post by valenciajim on Sept 15, 2014 13:59:44 GMT -8
Interesting. That is a good catch. I wonder f that was an error of if they just bought the inventory.
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Post by Deleted on Sept 15, 2014 15:56:42 GMT -8
Interesting. That is a good catch. I wonder f that was an error of if they just bought the inventory. Here is the entire e-mail: "Good Afternoon, My name is ...................... I am a sales person/customer service representative at Model Rectifier Corporation. We are a leading manufacturer, importer, and wholesale distributor of high-tech, quality hobby products. Today, our model train controls & sound systems are the world's most popular. Our radio control (RC) cars, planes, helicopters & engines, raise the bar for performance, and MRC Super Brain chargers hold a U.S. Patent. We have acquired much of Model Power’s inventory and in addition to that we also import and distribute Italeri products, Academy, Easy Model, Double Eagle, Ninco, Clever Paper, JTT, Mini Art, and Gallery products to name a few. I would like to send you a few catalogs of our product line and as well as the Model Power inventory that we have acquired. Please respond to this email with the name of a contact person, telephone number, and the address where I can ship catalogs and price list. I can also email you price list and information about special promotions and discounts we are offering, if you prefer. I am looking forward to assisting you now and in the future with all your hobby shop needs. My contact information is below if you have any questions or would like to place an order. -Thanks again, " You'll notice the rep mentions inventory twice. Also you'll notice the rep says on the Italeri, Academy, etc. lines the person says products. MRC's rep wouldn't mention products with one line and inventory with another. Unless it was only the inventory MRC acquired. It would appear MRC is just selling what meat is left on the bones and after that, the Model Power line will drift into the history books.
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Post by catt on Sept 15, 2014 16:06:21 GMT -8
The molds and dies are in China,ain't no way they will get them.MRC said they were looking forward to producing the MP line as well as their own products.
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Post by mlehman on Sept 15, 2014 18:12:59 GMT -8
Yeah, I wouldn't read too much into a few words and how they're used one place. And effectively what difference would it make anyway? If you want some MP stuff, better look for it soon. But really, most of it wasn't exactly collectible, so take that with a grain of salt.
The only thing it effectively means is that the name "Model Power" may still be for sale. Selling any MP stuff already in the pipeline is a good way for MRC and the vendor to get to know each other. It may be they keep getting essentially the same product, but it ends up rebranded in the next run as MRC, for instance. No need to spend for the naming rights under those circumstances and MP could then sell the name to someone with a greater need for it than MRC. Really, whatever is going on is likely a win-win at this point as far as sorting out branding and ownership.
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Post by atsfan on Sept 15, 2014 18:14:08 GMT -8
Acquiring Model Power is like someone acquiring Blackberry RIM in 2014. What is the point?!
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Post by Gary P on Sept 16, 2014 3:03:43 GMT -8
The only thing constant is change. I don't know, but I think maybe some good will come out of this. Like Mike says, this can be viewed as a win-win situation. If you are not inclined to buy anything by MP, no biggie, as this won't hurt you. If you are interested in MP items, then you will have a potential option to buy.
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Post by riogrande on Sept 16, 2014 4:30:30 GMT -8
Acquiring Model Power is like someone acquiring Blackberry RIM in 2014. What is the point?! Probably not much to many modelers including those who haunt Atlas Rescue Forums, but some may find a few of their products fodder for scenes or kit-bashing. Perhaps more relevant to the lower end of the market, I've noticed in the LHS, while there hasn't been much I am interested in, they did stock the shelves with a significant percentage of MP products. This provides some items for entry level and younger modelers on a budget. Those folks may evolve later into more advanced modelers and yes, largely out grow MP and grow into other stuff. My point is, Model Power products may provide a stepping stone for entry level modelers so in this way it is as good thing the product line is kept going.
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Post by alcoc430 on Sept 16, 2014 4:32:01 GMT -8
They probaly not ready to produce the mp line since it appears that a lot of inventory still exists. In addition any new lokies will include their sound system since I suppose thats what synergy means.
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Post by atsfan on Sept 16, 2014 16:37:38 GMT -8
Acquiring Model Power is like someone acquiring Blackberry RIM in 2014. What is the point?! Probably not much to many modelers including those who haunt Atlas Rescue Forums, but some may find a few of their products fodder for scenes or kit-bashing. Perhaps more relevant to the lower end of the market, I've noticed in the LHS, while there hasn't been much I am interested in, they did stock the shelves with a significant percentage of MP products. This provides some items for entry level and younger modelers on a budget. Those folks may evolve later into more advanced modelers and yes, largely out grow MP and grow into other stuff. My point is, Model Power products may provide a stepping stone for entry level modelers so in this way it is as good thing the product line is kept going. Maybe, but I can't see anything they make there were not much better products in the store at similar prices. And with stores closing fast, I honestly can't remember the last time I seen Model power stuff for sale other than some HO scale cars. Even so, why someone would BUY the company today I can't figure out. It is not likely a profit driver in 2014.
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Post by riogrande on Sept 17, 2014 3:35:16 GMT -8
Perhaps the product line could be picked up for relatively low cost and it allows a company which tends to serve the novice end of the market an expanded line. Folks in the middle to upper levels probably won't be bothered too much by those goings on, but it may still be positive for the hobby as a whole.
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Post by bar on Sept 17, 2014 5:47:49 GMT -8
By buying into MP, maybe MRC is getting expanded access to manufacturing in China.
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Post by mlehman on Sept 17, 2014 8:31:25 GMT -8
Yeah, that's a good point.
It also may be they're checking the production situation to see if it's still viable for them. MRC probably has its own relationships, so having this option is good. And by keeping it an option for now gives them an opportunity to evaluate the entire line, costs, quality, etc with an eye on saving the good and cutting the dead weight, while putting off the commitment of buying the whole enchilada until they know more.
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