This is taken from another site and explains an interesting angle. This also applies to a lot of slightly older, but still in manufacture Bachmann products
In 2000 the transfer of Hornby production to China had already taken place.
Their results for 2000 show that gross margin was 35.4%.
Now, if it is true (as they would like us to believe) that Chinese manufacturing costs have been the problem, then you might expect this gross margin to decline or at least be hard to maintain.
By 2001, however, the gross margin had climbed to 39.9%.
Let's run the clock forward a decade:-
By 2011, Hornby's gross margin had climbed yet again to 46.2%
Perhaps that was an aberration? Let's have a look at their latest 2015 set of accounts:-
By 2015 Hornby's gross margin had climbed further to 46.7%
That's why you cannot blame China. The manufacturing share of Hornby's costs has declined from 100 - 35.4 = 64.6% to 100 - 46.7 = 53.3%.
The impact of this greediness is easily shown by looking at the breakdown of a typical Hornby product bought directly from them.
The customer pays £120 for a loco, the taxman takes £20 leaving £100. It costs £53.30 to make it so Hornby are left with £46.70 contribution towards costs and, hopefully profit.
Imagine for a minute that Hornby still operated with the year 2000 35.4% margin. The manufacturing cost would still be £53.30 but the margin would only be £29.20 producing a selling price of £82.50. Add tax and the customer pays £99.
I would certainly be willing to make more purchases if prices were 20% lower.