# MTH 1 Gauge Direct Sales



## jlinde (Jan 2, 2008)

As some of you have noticed, every now and then MTH has offered factory-direct, heavily-discounted sales of certain engines (_e.g._, Triplex at $799, GG-1 at $499). http://www.mthtrains.com/sites/default/files/catalog_files/2011_rk_v_1/index.html

Now they've gone one step further and have published an interactive online catalog of similarly-discounted 1 gauge rolling stock that includes F3s, F7s, PAs, Dash 8s, VO 1000's, WP 4-8-4 Gs2's, and a selection passenger and freight cars. The catalog links directly to their online store. Here's the link: MTH 1 Gauge Online CatalogOther than Sidetrack Hobbies in MD and Reno Rails, I can't think of many model train retailers that specialize in MTH one gauge products. 

Even so, I can't imagine these retailers are very happy that MTH is now competing with them and dumping unsold inventory in the market all at once. And even though MTH is my fave sparky manufacturer, this discounting program doesn't say much for their sales over the last few years ...

Jon Linde


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## Greg Elmassian (Jan 3, 2008)

Yeah, the online sales has to directly compete with the dealers, who are probably hard pressed to sell below list price. 

The online "special sales" just kill the dealers. 

I think it's a big mistake, I've seen companies do this before, and lose their dealers, and the dealers won't come back later, they remember the "experience".. 

It's undoubtedly an attempt to make more money by selling at a higher margin. 

Greg


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## fred j (Jan 12, 2011)

Just another reason not to support MTH,

This is one of the reasons i gave up on them long ago.

Just like a Koolaider, Stick you in the back just to make

a buck and under cut your own Dealers. HMMMMMMMMMMMMMM

Who does that remind you of ? N.J. 


Fred

The sugar sweet fella.......................


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## jlinde (Jan 2, 2008)

To be fair, the MTH direct prices are pretty much in line with the large online retailers; MTH isn't selling below their own cost, at least. I worry more about the mom and pop stores - there's a neat place in Warwick, RI, for instance, that has had a Triplex in stock since it was released. He's asking about $1K for it, which was reasonable at one point, and I doubt he has a clue that MTH is unloading them for $800. I'd much rather give him my business, but the price differential is just too extreme. I also know that most O gauge dealers around here - North East Trains, for instance, have given up doing repair work on MTH products because they are either uncompensated by the company or never get the parts. 

BTW, I have no idea why my hyperlink to the catalogue got so butchered. Here's another shot - 

http://www.mthtrains.com/sites/defa...index.html


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## Trains West (Oct 4, 2008)

some of that is at cost and some below cost for a std hobby shop ...... now you know why I do not carry mth


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## jlinde (Jan 2, 2008)

This situation stinks for those of us who actually like their products - sure, I can order a loco from the MTH website. But I'd much rather have access to at least ONE hobbyshop in MA that stocked their engines...


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## markoles (Jan 2, 2008)

Jlinde,

Did you ask the dealer about giving you the triplex at the advertised price? I was able to do that with a dealer when aristo dumped their first run of mallets. What's the worst he can say? No? With MTH, don't they like you to take your locomotive back to the dealer first for repairs? When you buy direct from them, how would that work? There have been other cases where a dealer, who is also the manufacturer, sells to the general public without much regard for the protection of their dealer network. 

One of the things I like about MTH's online catalog is you can search for products then find out who has them. I used that to find out that a place in Greensburg, PA had special runs of Pittsburgh Steelers decorated trains made.


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## jlinde (Jan 2, 2008)

Hi, Mark. Not particularly interested in the Triplex right now, was throwing that engine out as an example. As it stands right now, I'm more interested in the PAs and getting back into live steam. That said, I'm *sure* he would drop the price at least a little if there was interest. I agree with you about the search function; it's great to the extent that the dealers participate ...


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## markoles (Jan 2, 2008)

Jim Miller got an A-B-A set of the PA's in the D&H scheme. It is an impressive looking lashup, for sure.


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## jmill24 (Jan 11, 2008)

jlinde, here is a link to a little review I did. Did not get to much attention............Jim


http://www.mylargescale.com/Communi...fault.aspx


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## dadreier (Jan 2, 2008)

I have to agree that the prices at the MTH site, while quite lower than the previous MSRP, seem to be a bit above the best deals available from discounters, especially at train shows.

I base my assertion on a quick comparison of MTH's revised pricing with my own running list of "best street prices" that consists of both advertised and observed offers. The listing comes in handy when prowling shows looking for bargains.

I have, however, used the direct purchase scheme from MTH not too long ago to pick up a GG-1. The price was pretty good, but I did have to pay $50 shipping. As luck would have it, the next train show I attend I see that Trainworld has the G's for one hundred dollars less than MTH. And I wouldn't have had to pay any shipping. 

Actually, when you think about it, MTH is not much different from USAT. I can't speak about over-the-counter pricing at Ro's store since I've never been there and his magazine advertised pricing is nothing great, but I've gotten some outstanding deals from Ro at train shows, especially TCA meets. The prices I paid for my eight USA Diesel locos from Ro simply could not be beaten by any dealer, according to my research at the time. Those folks don't seem to mind being a manufacturer and going head-to-head with their own dealers. At one show I was even offered the "show price" on a locomotive shipped from the store because they did not bring any in the roadname I wanted. I gladly accepted knowing I couldn't find a better price.

I probably have more Aristo stuff than any other brand. In comparison with the other manufacturers, Aristo seems to take more care avoiding "discount" sales to customers. I have noted, however, that very often when I place a phone or net order through a dealer, my items are shipped direct from Aristo, which makes the dealer seem redundant.


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## jgallaway81 (Jan 5, 2009)

Shipping direct from aristo... its probably because the item JUST got in off teh boat and hasn't been shipped to teh dealers [email protected] url(/providers/htmleditorproviders/cehtmleditorprovider/dnngeneral.css);


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## Greg Elmassian (Jan 3, 2008)

A big difference between buying from your favorite dealer, and Aristo drop shipping to you... and buying MTH directly from the manufacturer... 

In the first case, the sale and profit is made by the dealer, in the second case the dealer has no involvement or profit whatsoever. 

Regards, Greg


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## BodsRailRoad (Jul 26, 2008)

Posted By dadreier on 16 Jun 2011 10:28 PM 
I have to agree that the prices at the MTH site, while quite lower than the previous MSRP, seem to be a bit above the best deals available from discounters, especially at train shows.

I base my assertion on a quick comparison of MTH's revised pricing with my own running list of "best street prices" that consists of both advertised and observed offers. The listing comes in handy when prowling shows looking for bargains.

I have, however, used the direct purchase scheme from MTH not too long ago to pick up a GG-1. The price was pretty good, but I did have to pay $50 shipping. As luck would have it, the next train show I attend I see that Trainworld has the G's for one hundred dollars less than MTH. And I wouldn't have had to pay any shipping. 

Actually, when you think about it, MTH is not much different from USAT. I can't speak about over-the-counter pricing at Ro's store since I've never been there and his magazine advertised pricing is nothing great, but I've gotten some outstanding deals from Ro at train shows, especially TCA meets. The prices I paid for my eight USA Diesel locos from Ro simply could not be beaten by any dealer, according to my research at the time. Those folks don't seem to mind being a manufacturer and going head-to-head with their own dealers. At one show I was even offered the "show price" on a locomotive shipped from the store because they did not bring any in the roadname I wanted. I gladly accepted knowing I couldn't find a better price.

I probably have more Aristo stuff than any other brand. In comparison with the other manufacturers, Aristo seems to take more care avoiding "discount" sales to customers. I have noted, however, that very often when I place a phone or net order through a dealer, my items are shipped direct from Aristo, which makes the dealer seem redundant.


I think if you talk to the actual dealers you'll hear a much different story. 


I'm friends with several of the largest dealers and most are so pissed that Roe undercuts them that 
they don't even bother to bring USAT stuff to any show that he attends for that simple reason. 

Next time you attend an ECLSTS take a look around and see how many dealers are actually selling USAT stuff
(more than just one or two items) there will be One exactly, St Aubins. 

It's just bad business for a Manufacturer to undercut his dealers.
If all manufacturers did that you would not have any dealers, and eventually list price would be the street price 
and then the hobby, and our wallets would be much worse off for it. 

Ron


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## Greg Elmassian (Jan 3, 2008)

Ron, I think you misunderstood... in your highlighted section "Those folks" refers to Charles Ro.... not dealers in general... "Charles Ro does not seem to mind going head to head with their dealers".... just like MTH.... 

You are right, the OTHER dealers, are not happy.... but in the highlighted section, "dadrier" is specific in drawing the parallel between MTH and USAT in the guise of Charles Ro. 

Regards, Greg


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## BodsRailRoad (Jul 26, 2008)

I did think he was referring to other dealers my bad, I'm sure "they" don't mind at all, LOL. 
Ron


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## Adam Anderson (Apr 21, 2011)

This isn't really good for the hobby, but MTH does it's own thing.


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