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Have you ever bought a lionel engine at full price and then seen it discounted later?

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Posted by Anonymous on Thursday, February 17, 2005 1:21 PM
I do buy layout items locally. When it comes to landscaping materials nothing beats local shops. The reason is I like to see personally the colors of the grass, road, and trees. I have ordered landscaping materials from mail order companies and the colors have been off. Returning these low priced items ,under $10.00, is not viable because of the shipping cost. It is cheaper to keep them then send them back. I also buy rolling stock , books, magazines and track from local train stores. I have had some luck with mail order companies as far as landscaping materials go. I still prefer local train shops for layout materials.
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Posted by Anonymous on Thursday, February 17, 2005 12:52 PM
Retail margins for O-gauge model trains are probably not as good as most customers think. I'm in a retail business that sells expensive, discretionary products (motorcycles) and our margins are consistently not as good as our customers would like to believe. I would be surprised if the retail margin [defined as: [(suggested retail price - dealer net excluding freight-in from the vendor) / dealer net excluding freight-in] exceeds 40% on most items. While that may seem like a lot, consider that all of the retailer's expenses must be paid for out of that 40% - building rent or mortgage, utilities, taxes, non-billable employee expenses [e.g. the salary, benefits, etc. for the staff person who can explain the different features of that locomotive / fix the thing when it doesn't run / provide advice on layout design or track selection or ??? / etc.], interest expense on inventory, etc.) Subtract a discount to try to be even somewhat competitive with a mail-order house (which typically has less overhead, but offers less service) and the amount to cover the overhead shrinks even more.
The motorcycle (and probably the model train) manufacturers face the same problem - mail-order houses that can sell parts, accessories and clothing cheaper that the brick-and-mortar dealers, but who can't effectively service the product or the customer. From the manufacturer's point of view, the overall customer satisfaction suffers, even though one part of the distribution chain (mail-order) may profit.
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Posted by Anonymous on Thursday, February 17, 2005 7:29 AM
Two years ago, I purchased a Lionel 8850 Penn Central GG1 that was new in box for $500 from Nicholas Smith Trains in Broomall, PA. Considering this was a NIB piece, I thought it must have been a fair price, as usually everything else in the store is, usually.
Two weeks ago, I stopped by the Strasburg (PA) hobby shop to find the same locomotive in the same condition. The price - $220.00 (!). Less than half of what I had paid before. Needless to say, that one was under my arm when I walked out the door as well. I really don't have any idea what the market value is for this engine, I just think it was neat to find two new ones 26 years after they were released.
Unfortunately the quest continued to find one that has only been run a little bit as I am now torn about putting run marks on the other two's pick up rollers.
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Posted by TurboOne on Thursday, February 17, 2005 12:40 AM
Santa bought mail order as no one in town had a Thomas setup. Everything is came from LHS, but usually was on sale or used, unless I got the I need it now itches.

Tim
WWJD
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Posted by 3railguy on Thursday, February 17, 2005 12:35 AM
Well said, Bill. You also hear a lot of stories about mail order purchases gone sour.
John Long Give me Magnetraction or give me Death.
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Posted by ChiefEagles on Wednesday, February 16, 2005 6:14 PM
Amen Bill. How true that is. I think I pay a little extra [not much] to buy from my "train lady". I do know that If there is a problem, I know where to take it. I also come out to the good in the long run and feel good about buying there.

 God bless TCA 05-58541   Benefactor Member of the NRA,  Member of the American Legion,   Retired Boss Hog of Roseyville Laugh,   KC&D QualifiedCowboy       

              

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Posted by Anonymous on Wednesday, February 16, 2005 6:08 PM
Well this is one of the double edge swords of the hobby. Guys bemoan the fact that they pay full price and then later see the same item deeply discounted. So they then decide to choose to buy from a mail order discounter.

Then on the Forums, some of these same guys wring their hands in the fact that there are fewer and fewer brick and mortar train shops.

BillFromWayne
www.modeltrainjournal.com
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Posted by Anonymous on Wednesday, February 16, 2005 11:36 AM
I think this type of thing has happened to everyone and is true for all makes not just lionel.
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Posted by FJ and G on Wednesday, February 16, 2005 10:19 AM
I've shopped for the cheapest price on the Internet and rarely pay too much (tho the company probably makes a pretty penny off me even w/their discounts‚

I'm done buying trains for foreseeable future. I have more than enough for my layout. Future expenses will be in fixing the things I already have that get broke--like my TIU that failed and will mail in to MTH today.
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Posted by 3railguy on Wednesday, February 16, 2005 9:34 AM
Never look back after making a purchase. It spoils the fun.
John Long Give me Magnetraction or give me Death.
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Posted by Anonymous on Wednesday, February 16, 2005 9:34 AM
To answer the question: More times than I can remember--not just with Lionel, but with nearly all brands.

Happens far more frequently these days (past decade) than it did in the early years of the so-called modern era. It's simply the result of product glut in a relatively finite market, and it's likely to continue until such time as both critical components--market and production--level-off to a significant extent.
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Posted by Big_Boy_4005 on Wednesday, February 16, 2005 9:26 AM
That's the story of my life on Ebay. I think I'm getting a deal, then I see one sell for less.[swg]
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Posted by cnw1995 on Wednesday, February 16, 2005 8:39 AM
Well, I have not recently experienced this but in general - if I really want something 'now' - I'm willing to pay MSRP for it - whatever it is. The trade off with paying the premium is having it now. On the other hand, it is fun to hunt around to see what is the best price one can find. I've come up with interesting finds using comparison pricing websites like froogle.google.com - Personally, I also prefer not to hassle with eBay and I also prefer to support my local hobby store - and 'pay the price' for both these preferences.

Doug Murphy 'We few, we happy few, we band of brothers...' Henry V.

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Posted by ChiefEagles on Wednesday, February 16, 2005 8:35 AM
Average has been $350 for Dash 9, Dash 8 and SD80's that are fullsize [not LionMaster]. Not sure what is going on with the $279. Think something is up with that low of a price unless it is LionMaster. Call their toll free and see. Might be "legit" or might get told, we had one and it is sold. Who knows. [;)]

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Have you ever bought a lionel engine at full price and then seen it discounted later?
Posted by Anonymous on Wednesday, February 16, 2005 8:29 AM
I have bought many lionel engines and rolling stock for say 10-20% off retail. The thing that kills me is later I see the same piece at closeout for up to 40% off. Example sp dash 9 2004 I bought for $350.00 USD then I saw it for $279.00 USD. The reason I bought it was the mail order guy said they were getting hard to find. My conclusion is that you can usally wait for lionel but not for atlas. The exceptions are lionel UP SD90 MAC 2000, and SD70 UP 2004. Did anyone get any of these two items? I had the UP sd90MAC on preorder but my mail order supplier screwed me. I did get the UP sd70.

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