Lionel 2017 Pricing

[robmcc]

I was pricing out a few things of interest and I noticed most of the dealers I've purchased from in the past are only listing items about 10% off of MSRP, which is less than the typical 20-25% off in the past. Apparently, Lionel has a Minimum Advertised Price policy according to an email I received today from one of those dealers. Does anyone have any insight on why Lionel has implemented this policy? I know some of the dealers say to call for pre-order pricing, but it would be nice to know without having to call around. 

[cheapclassics]

Good evening all,

Perhaps they are trying to keep the local dealers in business.  Too late for me as local dealer is getting out of train side of things.  Have to go to Indy to get any kind of stuff now.  Kind of ridiculous.  I hope everyone has a good day.

Keep on training,

Mike C. from Indiana

[rtraincollector]

Back some time ago Williams Tried that but in the state of MD it was against the law or as per Marty of what was MA-PA trains 

[robmcc]

That was my theory too, Mike. Trying to level the playing field between the Mom & Pop shops and the mega dealers. I was wondering about the whole legal thing as well, RT. Hopefully someone from Lionel or a dealer can shed some light on the reason.

[cwburfle]

I don't think Lionel is any different than any other brand that chooses to institute Minimum Advertised Pricing. I was looking at a web site earlier this morning that explained why brands might choose to use it.

Update: Here are the bullet points from one of the sites discussing MAP:

MAP agreements:

• Promote fair competition across all distribution channels
• Maintain brand identity and value
• Allow smaller sellers to compete with larger retailers
• Prevent underpricing
• Protect seller margins
  
  

[phillyreading]

I was talking with a hobby shop owner in West Palm BEach FL area and he said that to order from Lionel he had to put in a minimum order of $5000.00 to purchase from Lionel so he uses an independant supplier. 

Another one was Gargraves track company, in order to get an order shipped the owner needed to have at least a $500.00 order or pay a small surcharge. Not 100% sure if the company did this or not but that is what I was told.

Lee Fritz

[rtraincollector]

Wow Lee on Lionel order I was always under the understanding it was a lot more. As from what I understand there are very few that can afford to do it. Basically your big stores like RO, trainworld, etc can buy from Lionel. Unless thats a monthly thing that you must do for x amount of months to prove your going to do that volume continuously. Must of changed since I was told about it 10 years ago. I also know Lionel will ( even thru the third parties (  use to force stuff on you. ( thats how a lot of these retailers get stuck with some of these sets they can't sell ( ie nascar)