Business Articles

Norscot’s numbers game

A partnership with Cat has raised its profile, but that’s not the only reason dealers are stocking up on the manufacturer’s replicas
By Nick Bullock
Published: May 14, 2014
It’s simple math. If it costs upward of $100,000 to develop tooling for production of a die-cast Caterpillar replica — or anything for that matter — then it’s in the best interest of the manufacturer to produce as many units as possible using that tooling.

That oversimplified example illustrates both the reasoning behind Norscot Group Inc.’s business model, as well as the competitive advantage it holds in the die-cast model market.

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