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What also has a impact on the price of Kits is the cost of crude oil another impact on the cost of kits is all thes bells and whistles the rivet counters want in the kits IE photo etch, indi links moveable suspension and now full interior
Ummmm, about the cost of oil:
1 barrel Brent oil goes for around US $73, a barrel contains 42 US gallons.
If we assume that a gallon of oil goes into the production, trasnport and sale of an average kit (the styrene itself, energy used to produce, transport and process the styrene, energy to transport the kit from factory, energy used to produce the instruction booklet and all the non-styrene content of the kit) we would be looking at less than 2 (two) US $.
Maybe my calculation was overly optimistic so let's assume that 2 gallons are required, this would still only account for two dollars.
If the cost of Brent oil doubled it would only affect the price for a kit by 4 dollars at the most.
See also my previous post about the relative cost of kits compared with Big Macs.
Today we can buy, for the same relative money, kits that contain three or four times the number of parts/details as 40 years ago.
The number of dollars listed on the price tag needs to be adjusted for inflation before comparing "now" with "then".
"Wages in the United States increased to 23.31 USD/Hour in April from 23.24 USD/Hour in March of 2019. Wages in the United States averaged 11.22 USD/Hour from 1964 until 2019, reaching an all time high of 23.31 USD/Hour in April of 2019 and a record low of 2.50 USD/Hour in February of 1964."
The buying power of US $ 22 back in April 1974 is
the same as US $117.13 in April 2019.
Now try to remember your first ever kit, what it was and when you bought it, enter the numbers in the calculator here:
https://www.bls.gov/data/inflation_calculator.htm
and check the results. Which kit could You buy for the inflation corrected money today?
A better kit or not?
The Tamiya Pz IV kit (nr 35054) I bought back in 1987 for 150 SEK would be 343 SEK today. Today I can get the Border Models Pz IV for 450 to 480 SEK. For something like 10 bucks extra I get a kit which is three to four times better (my opinion). With indylink tracks included so I don't have to spend 10 bucks and upwards on aftermarket tracks ....
I should have saved the money back then and bought the new kit today, the Border Models kit is a LOT better value for money compared to Tamiyas old Pz IV (35054).
The industry hasn't gone crazy.
The modellers (i.e. we) haven't gone crazy either. We are forking out more or less the same money now as back then but the kits we get are superior. If we did the math based on number of minutes of building joy (hobby minutes / USD) I think it would be easy to prove that we are getting a lot more for our disposable hobby funds now compared to then.
/ Robin
P.S. Still have a few of those old Tamiya kits in the stash.
Someday they will get built .....
I'm guessing your wage numbers come from a web site, but I can assure you few average people where I am are making $23.00 except on an average where the billionaires are included.
Food for thought. We had a contractor installing a system that just returned from mainland China. While on a smoke break he saw a line of people waiting at the gate to get inside. When he asked what the line was for he was told there were a few jobs postings for the plant. He guessed there was 5 or 6 thousand people in line for those few jobs. Any worker is easily replaced, and they know it!
Where I work we have plenty of BDM's (brain dead morons) who linger on because of worker protection laws, and Arizona is a right to work state.
BDMs!
No talent or brains count for nothing versus tenure and cronyism...