Dear Martin, Jim, Costas,
Well, hobby industries is following the I.T. industry - Globalization.
First of all, I would like to share my personal experience. I "was" an I.T. guy (selling computer system, networking stuff and writing program for customer to earn my living). In 1993, when we sold PC server to a company in HK/China, we can have 400-500% margin! (i486 server with 16M RAM). And the margin from related accessories (cabling, hard drive) can have 100%-200% margin and a respected wage for installation, training and support.
At that era, most computer is manufactured in Taiwan, Japan and for high-end machine in U.S. The usual customer does not know the price it should be. Or they don't know how to "configure" the purchasing list for their needs. So, we can have a good reward from making this.
This "golden" era came to 1994 when Compaq start a price war and starting to "globalization" on the manufacturing of a PC (casing, power supply, keyboard from China, Taiwan, CPU from Far East), the price drop 30-40% in one year. And also, all manufacturer started to list out the price on standard configuration machine (pre-configure such as 8M RAM, 500M hard disk). We changed ourself to configure "non-usual" configuration to make our money. But it seems I.T. industry leads the design of "Supply-Chain-Integration" when Michael Dell started his idea of "on-demand production" where it can cut the excessive stock, inaccurate sales forecast. By listing the customer order directly into the manufacturing plant in almost real-time fashion. Nowadays, when you order a PC from Dell.com, their manufacturing plant "start" to order the parts require for your order and make every items available on next day. So, you can have your PC shipped on the 3rd day. 5-7 days later, the PC is on your desk!
Besides, the starting of configurable PC make the order customization possible. Therefore, you can have your exact configuration.
This series of changes make "me" to have the margin on 300-400% to 0.003% margin! Now, if I doing the same business as before, I can only earn US$15 per PC including installation, shipping on site. While Dell.com can offer 3-years on-site warranty (no more room for my job!)
I think something similar (no exactly) happens on other industrial (scale, R/C model) is on the same track. The tranparent of information makes the consumer more information (more power) and competition is going on country to country level, not on the street to street level.
Thanks to nature of scale model, the scale model cannot be "made-on-order", so that the game falls to keep inventory in a "smart" way to maintain the competitivness.
Just my 0.2 cents
Best Regards
Raymond Chung
LuckyModel.com