Hi Ed -- I hate to contradict you, but the business of preorders has been around for a very long time in ALL scales. A very good example is brass models – if the dealer didn’t order some for the shop for speculation sales, it was highly unlikely that he could get more once the window for reservations was closed. When the US started buying its model trains from the Orient (KATO) this sales model was put in place for “bread and butter” rolling stock. Once the US manufacturers moved their production to China, this limited production, early ordering, no inventory situation became the norm and not the exception. A lot of this has to do with the capabilities of the factories that are actually building our toys. They are not wholly owned and operated by a single model train maker, they make stuff for many businesses and there is no way to change a production run once the commitment has been made for X amount.
As a former hobby shop owner, it was becoming harder and harder to deal within this business model. If you didn’t have the space or the money to warehouse and sell at deep discounts product that was due a year down the road, maybe, you were inn danger of either having no stock on the shelves or having too much of something that was a sales turkey for you. Either way, you are on your way out of business and out of funds. I was fortunate that I had some guys that were willing to share the risk with me and put in orders for themselves well in advance of production. Of course, I had to compete with the discounters/internet on pricing, but these guys had to pay the sales tax – their part in keeping me in business. Then there were those who just wanted to see the product so they could order on line without sales tax. It didn’t take too many of those incidents to take me out of those products and not cater to them and they wondered why... I am afraid that I sold the shop just in time, before I became so jaded that I put myself out of business. So in answer to your question, YES, your dealer's answer does make sense. I am sure that he looked at the future product order form and asked himself,"Do I have a guaranteed sale of an S scale NYC SD70, or being in the San Francisco bay area is that a bit unrealistic -- I mean there was never such a loco and all the guys I know in S scale are total rivet counters and all model the SP..." . It is not likely he would order a loco like this on spec. The preorders placed by dealers determine how many units would be contracted for by the importer (Lionel in this case). The preorders by the dealers were based upon customer input (reservations). No reservation, no dealer order, no extra production of any significant amount. (I think most importers try to keep to around 10% over run). I am sure that in whatever business you worked in, that if it produced a hardware product, they didn't just make a bunch in hopes that they could sell them all -- they had a reasonable number produced based upon market research (reservations/preorders/experience). It would be nice to have samples to view in person, but with production overseas, that is difficult. The internet is as close as it gets these days. You have to trust your suppliers and importers, sometimes a difficult thing to do when you have been burned (Creyer Grey, etc.), but how many of us get to see what Boo Rim and River Raisin are doing in person before actually getting the model? Sometimes, you still have to trust them... Have fun! Bill Winans --------------------------------- ... My friendly dealer reminded me that pre-orders were due last Fall and he is not certain he can still get one. And the locos have not even arrived yet! Does this make sense? I was hoping to see one first and then decide. Now I will buy it and sell it off later if I don't like it. Do I appreciate being put in this position without being told about it? If the explanation had been communicated upfront, I would have no complaint. Then again, model railroading in S is different from the real world. I am still learning that after 44 years in the scale. It is a lifelong learning process for sure. Yet, in spite of the frustration, I am very pleased that both Lionel and MTH are planning to offer S scale products. Cheers....Ed Loizeaux
