Menard's can afford to unleash $20 cars (on almost a weekly basis it seems) because the model train part of their business is a VERY small blip on their $8.6 Billion bottom line diverse company that is it's own distributor and retailer. The seasonal delivery of train stuff to individual stores probably takes up very little space in the truck delivering the normal restocking items.
Lionel's bottom line is considerably lower and has to deal with independent distributors and retailers.
If Lionel and MTH were to try to match Menard's output and prices, the market would saturate much faster than it would expand and would soon collapse under its own weight.
Frankly, Menard's expansion into the HO structure market may be an indication that O gauge sales are slowing.
Rusty
