# COMPETITION



## Treeman (Jan 6, 2008)

Due to the current competitive market in USA Trains, we have decided to temporarily drop all USA Trains web price by [/b]5%.[/b] The difference with us is you don't have to buy multiple items to get a *GREAT DEAL!* Now's the time to stock up on all your wish list items, as this may not last long. This sale is good for only items in stock on the current USA Trains availability list.


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## NTCGRR (Jan 2, 2008)

Ok, does it say on the web site which ones is in stock??


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## Greg Elmassian (Jan 3, 2008)

I just got an email from RLD, I believe they have the same sale terms.... 

Good deal for us, haven't seen a sale on USAT for a while. 

Greg


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## Madstang (Jan 4, 2008)

Did I miss something??? 5% of $100 is $5......5% of $200 is $10. Is this the kind of sale G scale has come to? 

Bubba


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## eheading (Jan 5, 2008)

I agree, Bubba. While any dollar saved is good, in my humble view 5% off sales are more hype than real value.

Ed


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## pete (Jan 2, 2008)

First how big is the markup, if it is a lot than 5% is not much or if the mark up is not all that much than 5% is not all that bad.


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## Dr Rivet (Jan 5, 2008)

OK 

Bubba and Ed 

Become a dealer for USA Trains and discover the difference between dealer cost and Charlie Ro's store price [NOT USAT MSRP]. If you figure how to give up more than 5% in addition to the discounts they already have, please let Robby and Mike know your secret to staying in business more than 30 days. The dealer margins on many brands are negligible after applying discounts to compete directly with the manufacturer who will sell directly to the end purchaser. 

Free trains for everyone. YEAH!!!!


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## Madstang (Jan 4, 2008)

Posted By Dr Rivet on 05 May 2012 07:14 AM 
OK 

Bubba and Ed 

Become a dealer for USA Trains and discover the difference between dealer cost and Charlie Ro's store price [NOT USAT MSRP]. If you figure how to give up more than 5% in addition to the discounts they already have, please let Robby and Mike know your secret to staying in business more than 30 days. The dealer margins on many brands are negligible after applying discounts to compete directly with the manufacturer who will sell directly to the end purchaser. 

Free trains for everyone. YEAH!!!! 

I think I started out with.."did I miss something"? Obviously you did/do also.

Bubba


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## eheading (Jan 5, 2008)

Jim, Please understand my comment and agreement with Bubba had nothing to do with the validity of the number 5%, or the reasons however justifiable for not offering a larger discount. My only reference was that when I personally see a sale, and the discount is 5%, the item had better something I REALLY want, because that is a pretty small drop in the price.

Ed


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## Madstang (Jan 4, 2008)

I hate to offend anybody but it had to be stated.....do you routinely like 5% disscounts when you buy a car, a lawnmower, etc? Do you take the first estimate for home improvement or what ever, no you get 2-3 to try and get the lowest price so you can make your money stretch, making sure you still get quality work...buying trains is no different.

Just like sellers they want, need a good price for their wares, and my bottom line demands the best cheapiest price for what ever I want, so I can afford other necessities...G scale trains isn't that.

We all like Mike and Robbie, and will always buy items from them, and this is nothing personel....just like with them it is just business.

Bubba


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## livesteam53 (Jan 4, 2008)

Look at it this way items are 45% off Sale of suggested retail price. 

Feel better now?


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## Michael Glavin (Jan 2, 2009)

You guys really did miss something.... The 5% discount offered is in addition to the currently listed *WEB or online prices*, which reflect approximately a 42% discount from retail or MAP. A 47% discount on a automobile purchase would be something to talk about!

Michael


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## Madstang (Jan 4, 2008)

That is what I orgionally stated. Could you please post the link as I ALSO missed the web page you are talking about, as the USA trains site's prices are VERY high. 
Once again I started my post with..."did I miss something"?

Bubba


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## Michael Glavin (Jan 2, 2009)

Bubba, 

Click on the link in Treeman's original post for the Reindeer Pass web page. All prices for USAT are heavily discounted as I noted in my previous post. Most dealer discounts (hobby shops) for line items other than parts are in the 40% range from major OEM suppliers, 50% is typical of distributors or bulk purchasers... 

Michael


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## Randy Stone (Jan 2, 2008)

http://www.usatrains.com/pdf/instock.pdf


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## Madstang (Jan 4, 2008)

Posted By Michael Glavin on 05 May 2012 11:16 AM 
Bubba, 

Click on the link in Treeman's original post for the Reindeer Pass web page. All prices for USAT are heavily discounted as I noted in my previous post. Most dealer discounts (hobby shops) for line items other than parts are in the 40% range from major OEM suppliers, 50% is typical of distributors or bulk purchasers... 

Michael 

So you are saying that they are 40% off MSRP? Which is the price on the USA trains webpage? I still don't get where the 40% is comming off of as no one pays MSRP, it is a bogus num ber to make the real price which is 1/2 that retailers usually sell them for. 


Say on Kidmans page the savings is $13? thats the 5% off what the "cost" price is? 

Bubba


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## Greg Elmassian (Jan 3, 2008)

I'm happy to see any additional discount, even 5%... in this market, I'll take what I can get. 

Yes, i agree, the MSRP is a completely bogus number by itself, unfortunately, it is the mathematical starting point for the final price. 

Recent changes in MSRP seem to be inflated, and giving more discount after you have inflated the MSRP is kind of sneaky, but it's how business is done unfortunately. 

And I feel for the dealers, who have a **** of a time competing, the recent online Aristo store and many special discounts on top of their discounted prices, and the built in competition for USAT dealers from Charles Ro really make it hard for dealers to make any money. 

Greg


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## TonyWalsham (Jan 2, 2008)

If the manufacturers compete with the dealers what is the incentive for dealers to support the manufacturers and carry their products? 
If the manufacturers keep this up, they will eventually cause their own demise.


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## kormsen (Oct 27, 2009)

step one - customers complain about a dealers prices. 
step two - customers stop buying from a dealer. 
step three - dealer has no profit. 
step four - dealer goes out of business. 
step five - customers mourn for their beloved dealer.


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## Paul Burch (Jan 2, 2008)

Well, I just did my part and ordered a 60' USA boxcar from one of our MLS sponsors.


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## Treeman (Jan 6, 2008)

OK, This may sound better. * Bachman K-27's 60% off MSRP.*


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## Madstang (Jan 4, 2008)

Sorry Mike no one pays MRSP...NO ONE! 60% off a fictatious number is silly. It is like listing an engine comes with a car. Something no one pays attention to, the real question is how much can I REALLY get it for.

I had to replace a complete motorblock for my 2-6-6-2, Bachmann wanted $400 for just the one motor block, which was ridiculous, I bought the first one from Robby for a less then $500 price which was a great price at that time, shortly after that they went back up. I bought a new engine at the National last year paid $600 from a vendor.....Al Kramer,lately is selling them for $459. My point is I know of no one that pays MSRP, why would you? BUT manufacturers will always take MSRP from you.

Bachmann lists it on their site for $1250, 60% off that is $750..I payed $600 at national last year......Al sells for $459..I lost $150...on that second purchase......how would you feel if you lost $150 on any deal? 

If Al can sell them for $459, and the MSRP is $1250, and till just recently I noticed that RDL has lowered theirs down close to Al's pricing, it just makes me wonder just how much mark their really is when there is that large of a price spread. So yes I do believe in some in stances there is a 20-30% profit margin but things like this really make me wonder, just how true all this rederick really is.

Everyone thinks Al has no overhead, but I know Al, I can't see him sending out all the stuff he sells on ebay himself, so I am shure he has someone helping him, so I don't truly believe the point about him not having any overhead.

When you loose $150 from pricing you become very critical of the prices you are willing to pay for an item, just because it states 60% off of MSRP. And sellers think it is a great deal.

So again MSRP means nothing except stating an engine comes with the car..so-to-speak. 

IMHO

Bubba


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