Dear Bill, I guess with the small market, we were a bit luckier as we had inventory sometimes for years. But, most went pretty quickly. I only can think of a few times we sold out before a shipment arrived... Don T.
On Jan 6, 2013, at 6:03 PM, scale S only wrote: > > 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 > >
