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Reply to "Questions for dealers and buyers."

Originally Posted by Rocky Mountaineer:
Originally Posted by rtr12:
...

Actually the VL BB prices looked like blowouts to me from the start, when you consider the MSRP as the starting point. They started selling them at $700-$800 off list from the beginning. ...

No, no, no.  That was all part of the lure of Lionel's new overly inflated MSRP policy.  Street price for the Big Boy should have been just a shade over the street-price of the recently announced Lionel Y6b (which is coming in at $1400 give or take a few $$$).  There's nothing in the Big Boy that justifies a $600 street-price premium over the Y6b.  Enhanced steam blowdown effects and a depleting coal load, yes.  But $600 more?  Absolutely not.  There is really no other conclusion to draw once you can get yourself past the Vison Line badge.

 

Now back to the topic of pre-order price variations... I expect that we'll continue to see cases where pre-order pricing anomalies do occur though.  And they'll be pretty easy to spot.  For the most part, the dust has settled around the 25-30% off MSRP for pre-order pricing of Lionel's newest product announcements.   More importantly though is how much margin dealers are still working on at those price points, and that's largely an unknown except for those "in the business".  But suffice it to say, they're still making a healthy profit or they wouldn't be doing it.

 

A prime example of a pre-order anomaly???  Here ya go...  I was literally shocked the other day when I received an email newsletter -- from another OGR Forum sponsor -- offering 10-15% off MSRP for Lionel 2014 Volume 2 pre-orders.  Yes, that's right... 10-15%.  REALLY????   Are they living on a different planet?    For something like the Y6b, that equates to an almost $300 additional cost at the smaller discount off MSRP compared to what most of the dealers have posted already.  

 

What am I missing here?  Unless they just happen to order some extra "on spec" for dealer stock, so they'll eventually be the "only game in town" when other dealers sell out... what kind of strategy is that, now that most folks who want these gems are likely shopping for the best pre-order price from reputable dealers?  Perhaps they know something about BTO that further reinforces my thought all along that Lionel's entry into BTO has all just been something to generate the buzz factor.  After all, we know MTH and Atlas-O have been BTO (for portions of the product line) all along.

 

Never ceases to amaze me...

 

David

Well, new MSRP policy or not, they are pricing themselves right out of my budget. I realize some dealers are giving BIG discounts, but I try to support my LHS and don't purchase much from the big guys, only hard to find items or stuff my LHS can't get. Fortunately I don't have or plan to have any steamers, only diesels, so I'm off the hook for the really big ticket items.

 

I understand they are trying to make us think these things are worth a lot more than they are, but it doesn't help make them affordable to people that might otherwise purchase one. I hope they are not starting a trend among all manufacturers as my train purchasing will be reduced in quantity as the prices continue to increase.

 

The 10%-15% discount might be all the small shops can do? As we have discussed before, the larger dealers seem to be getting a much larger discount form the manufacturers while the LHS still has to go through a distributor. They may be feeling a good hard pinch like the rest of us. This does not seem to be helping them any, and possibly making things worse? From talking to my LHS, I don't think they will be stocking as much Lionel as they once did? Also, that means less for me to look at from Lionel on my weekly visit to my LHS. So it goes, I guess.

 

The one that got to me the most was the GP30 for $650 that MTH will probably sell for maybe $429 for a Premier version. 10%-15% off that one at $650 is even worse. Still puts it at $550 or so with 15% off. Fortunately Lionel seldom makes anything in my chosen road name, so that also helps. I am getting quite a few engines in my stable now, so I won't need as many in the future.

 

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