Digital Command Control set and component business has become one of the fastest growing segments in the model-railroading industry, which otherwise is in somewhat of a holding pattern. Certainly retailer participation in DCC is on the fast track.
"The growth in DCC decoder sales has been exponential," says Zana Ireland of Digitrax. "We've seen a dramatic increase in the number of users, both new modelers who are fascinated by the technology as well as the 'old heads' who have decided that DCC is the thing to do."
Debbie Ames, director of sales for Lenz Agency of North America, agrees. Lenz reports it sold 190,674 decoders worldwide in 2000 alone and has made and sold more than 1 million since 1988. Ames notes that in earlier years the DCC business was growing at more than 100% a year. She estimates that 14% to 18% of the market now uses decoders and expects that to hit 50% in the next several years.
"DCC is one of the lively things in the industry right now," she says. Spurring this growth has been an increase in the number of entry-level systems, as well as the availability of decoders that can simply be plugged into most new model locomotives (especially HO and larger scales).
Atlas has even taken that a step further, as the two latest HO locomotives in its Atlas Master series are available only with the firm's dual-mode decoder already built in. This unique decoder allows changing from straight DC operation to DCC by moving a plug in the decoder's socket.
Initially there was resistance to DCC from non-DCC modelers who felt they were paying money for a feature they didn't want. However, that notion has changed, says Kate Hannett of Atlas Model Railroad Co.
"At first we heard from a small percentage of modelers who felt like they were paying extra, but now the response is overwhelmingly positive," she says. "People are very excited about it. Their thought seems to be, 'Even if I'm not using DCC now, the decoder will be there when I'm ready to switch to DCC in the future.' "
Atlas will continue including decoders in its future Master series locomotive releases, Hannett says. Digitrax and Atlas both report that they've seen an increase in the number of hobby shops carrying DCC systems and components, something both are encouraging.
"Back in the 'old days' of command control everyone bought from manufacturers directly," Ireland says. "Now, most shops carry DCC products, and most that we deal with carry our full line. It's taken a lot of work to get to that point, but it's been worth it. We've especially noticed that a lot more smaller stores are carrying our DCC products."
Ames, too, says Lenz is seeing growth among retailers. She estimates her firm adds one to two dealers each week who want to handle DCC.
Ireland and Hannett both say that shops find selling DCC products beneficial because it stirs additional sales. For instance, after customers have bought a DCC system and come back to purchase a locomotive, their next purchase is almost automatically a decoder.
"We realize that most shops can't possibly stock all the decoders that we make," Ireland says, "but they stock the most common ones, and the ones that match locomotives that they have in stock."
"Our dual-mode decoder has also been very popular," Hannett says. "It's a good middle-of-the-road decoder, and shops and customers have found it to be a good value for its [$29.95] price."
Digitrax conducts training classes for dealers at various conventions throughout the year, including the National Model Railroad Association national convention, the International Model & Hobby Expo, and the National Retail Hobby Stores Association convention.
"The classes help both old and new dealers, and make them feel more comfortable selling the technology," Ireland says. Items covered include a hands-on demonstration of setting up a system as well as training in answering customers' questions and lessons in teaching customers to choose and use DCC products. Dealers leave the class with a demonstrator set for their shops.
The bottom line for DCC manufacturers is to get customers to see the operational benefits of DCC and take the plunge with the technology, even if it means buying a competitor's system.
"Our preference is not necessarily for them to buy a Digitrax system, but to buy what they need," Ireland says. "I hate to see someone buy a system that is less than what they'll need in the future."
To that end, Digitrax is releasing its new Zephyr starter system, which should be available in the spring. "It's a very basic, easy-to-understand system," Ireland says, "but it is also almost infinitely expandable." The system will compete with the Atlas Master system as well as MRC's newly released Prodigy DCC system.
What's next on the DCC horizon? Hannett reports heavy customer interest in stationary decoders, mainly for operating turnouts. "Anything that makes wiring easier," she says. Hannett also noted that Atlas is updating its popular line of track planning books to include wiring information for DCC.
Over at Digitrax, the company's high-end users are asking for a signaling system and other products that take advantage of the transponding capabilities of the firm's new high-end decoders (such as the DZ121). Transponding allows command stations to track locations of trains, greatly simplifying train detection.
However, the main goal for both manufacturers is to continue attracting new converts to DCC and keeping current DCC users happy. "Our goal for beginners is to provide an easy-to-understand system, but one that's expandable," Ireland says. "And for high-end users, it's to keep giving them another level to go to."