To All: Upfront this messsage may sound like editorializing on my part, but it's sole intention is to shed some light on current changing trends that I perceive that manufacturers and dealers are taking to survive in these tight economic times. I want to make sure that everyone on this group gets all of the models they want. (1) In the past couple of months there have been "Fire Sales" like I can never remember happening before. Walthers and Intermountain are examples that come to mind in actually the last several days. Even the once conservative company, Kadee, is offering sales on items they have including couplers. Walthers is actually selling items on sale direct and offering them to dealers at the same time for a price where they, the dealers, can turn around and offer them to us for less than Walthers does! The reason that I know this is that I actually got a Walthers sale list and a sale blast from two pushers offering the same items for less within two days of each other. (2) One relatively new manufacturer to hit the market is Exactrail. To this point in time they haven't offered any Frisco specific models, but did recently offer a Katy hopper. They are not actually announcing most of their new releases until they have them in stock and ready to ship. In the case of one recent model it sold out the first day and evidently not all orders got processed which caused them to have to issue an explanation of their order process on at least one freight car oriented Yahoo Group. I compare it to a "feeding frenzy" to get on the Internet the moment a certain concert ticket goes on sale! (3) More and more dealers (aka pushers) are offering sweeter deals (5% to 10%) more off if one places an order by the manufacturers cut-off date for them to place their orders with them. (4) At least one manufacturer, Atlas, has initiated a "Club" principle where they charge a nominal fee and members will be offered exclusive items only available to them. Many big name artists have formed fan clubs where members can get exclusive access to concert tickets before they go on sale to the general public. In conclusion, ther is nothing wrong with any of the above mentioned practices, just a change in the way business is done. Honestly, I for one believe the Internet is the reason for most of it. In the case of concert tickets, scalpers got into the business and got good seats to concerts before the general public because they bought them on the Internet. In the case of the hobby, Internet sellers started offering sweet deal discounts for advance orders. In regards to the manufacturers, they found a way to only produce quantities that they knew they could turn rapidly and not have massive inventories stacked up in warehouses they couldn't move. Bottom line, if you see an item introduced that you know that you want, find someone reputable that you trust and order it up front. The wait and see if I like it when it comes in principle is virtually over. I encourage others to express your opinions or concerns as I just did. All I ask as a Moderator that this does not turn into a "flaming" thread as that will not accomplish anything constuctive. Respectfully submitted:
It is all about maintaining the correct balance between profit margin and inventory turns. Different company and different management will have different ideas about what the best way is to make a profit. In my business, building materials and hardware, I see both extremes. Going all out for margin and going all out for turns. Walthers has always sold direct, they just use to hide it better using the front of Terminal Hobby. The market has changed, as friscofriend pointed out. As far as the fire sales. (Full disclosure time. I used buy wholesale from Walthers and most distributors that were around 20 years ago.) Walthers has always protected their dealers, and if they have a regular $20.00 retail item that they put on sale for $10.00 at retail, then they offered the item to their dealers for 40% less, or $6.00. That is how the dealers can, if they don't mind making less than 40 points, sell for less than Walthers. Certainly, friscofriend is correct. "Bottom line, if you see an item introduced that you know that you want, find someone reputable that you trust and order it up front. The wait and see if I like it when it comes in principle is virtually over." Kent in KC nvrr49.blogspot.com
