rrebell ATLANTIC CENTRAL I will repeat my earlier comments more strongly..... What makes anyone think that a ligitimate business would be selling these items at such low prices? I'm sorry, but if you think for one minute that model train manufacturers, or model train dealers are making that large of a profit that someone could be selling products for 20%, or even 30% of the retail price and still be making a profit, then maybe you need a lesson in economics? Or maybe you got the lesson....... Walmart works on about 27% GROSS margin and makes about 5% net profit. That means if you buy something for $100 Walmart paid $73, then had to spend $22 to run the store and pay the wokers, leaving them with $5 profit. I have been self employed most of my life, I don't get out of bed for 5%. The rule of thumb is "factory cost" x 5 is usually the minimum profitable price. And out of that other 80% comes shipping, operational overhead, amortization of tooling costs, etc, before there is "net profit" for the manufacturer or the seller. Some product lines do have "artificially" high retail prices. But their "street" prices are clearly the same from multiple dealers, that establishes the "real" price, so anyone way below that is suspect. So anyone selling model trains for less that 35-40% off, is liquidating inventory at a serious loss or is a scam. And for many brands 20-25% off is a really good deal because their products are not artificially marked up. You guys have already cut out all the middle man markup that once allowed distributors and local hobby shops to keep inventory in stock, because no one will pay retail or near retail prices. Maybe its because I am self employed, have worked in the hobby business, and have developed, manufactered and sold products, but I don't have much sympathy for people who fall for this kind of thing, because again, to believe these prices are ligitimate is to also believe that others who are selling at higher prices are charging too much. Sheldon Thats what the books say but that dose not include shelf selling or volume discounts. If you go buy a new car, many times they will show you a dealer cost sheet but that is for one car, the more you sell the cheaper the cars, same with appliances.
ATLANTIC CENTRAL I will repeat my earlier comments more strongly..... What makes anyone think that a ligitimate business would be selling these items at such low prices? I'm sorry, but if you think for one minute that model train manufacturers, or model train dealers are making that large of a profit that someone could be selling products for 20%, or even 30% of the retail price and still be making a profit, then maybe you need a lesson in economics? Or maybe you got the lesson....... Walmart works on about 27% GROSS margin and makes about 5% net profit. That means if you buy something for $100 Walmart paid $73, then had to spend $22 to run the store and pay the wokers, leaving them with $5 profit. I have been self employed most of my life, I don't get out of bed for 5%. The rule of thumb is "factory cost" x 5 is usually the minimum profitable price. And out of that other 80% comes shipping, operational overhead, amortization of tooling costs, etc, before there is "net profit" for the manufacturer or the seller. Some product lines do have "artificially" high retail prices. But their "street" prices are clearly the same from multiple dealers, that establishes the "real" price, so anyone way below that is suspect. So anyone selling model trains for less that 35-40% off, is liquidating inventory at a serious loss or is a scam. And for many brands 20-25% off is a really good deal because their products are not artificially marked up. You guys have already cut out all the middle man markup that once allowed distributors and local hobby shops to keep inventory in stock, because no one will pay retail or near retail prices. Maybe its because I am self employed, have worked in the hobby business, and have developed, manufactered and sold products, but I don't have much sympathy for people who fall for this kind of thing, because again, to believe these prices are ligitimate is to also believe that others who are selling at higher prices are charging too much. Sheldon
I will repeat my earlier comments more strongly.....
What makes anyone think that a ligitimate business would be selling these items at such low prices?
I'm sorry, but if you think for one minute that model train manufacturers, or model train dealers are making that large of a profit that someone could be selling products for 20%, or even 30% of the retail price and still be making a profit, then maybe you need a lesson in economics? Or maybe you got the lesson.......
Walmart works on about 27% GROSS margin and makes about 5% net profit. That means if you buy something for $100 Walmart paid $73, then had to spend $22 to run the store and pay the wokers, leaving them with $5 profit. I have been self employed most of my life, I don't get out of bed for 5%.
The rule of thumb is "factory cost" x 5 is usually the minimum profitable price. And out of that other 80% comes shipping, operational overhead, amortization of tooling costs, etc, before there is "net profit" for the manufacturer or the seller.
Some product lines do have "artificially" high retail prices. But their "street" prices are clearly the same from multiple dealers, that establishes the "real" price, so anyone way below that is suspect.
So anyone selling model trains for less that 35-40% off, is liquidating inventory at a serious loss or is a scam. And for many brands 20-25% off is a really good deal because their products are not artificially marked up.
You guys have already cut out all the middle man markup that once allowed distributors and local hobby shops to keep inventory in stock, because no one will pay retail or near retail prices.
Maybe its because I am self employed, have worked in the hobby business, and have developed, manufactered and sold products, but I don't have much sympathy for people who fall for this kind of thing, because again, to believe these prices are ligitimate is to also believe that others who are selling at higher prices are charging too much.
Sheldon
Thats what the books say but that dose not include shelf selling or volume discounts. If you go buy a new car, many times they will show you a dealer cost sheet but that is for one car, the more you sell the cheaper the cars, same with appliances.
I'm not really interested in this argument, but there is always a bottom price, and in low volume businesses like model trains, the regular discount structures are already close to the bottom. Believe whatever you like, but I have spent a few years in this business, and I have developed and brought to market a few products in my time.
BigDaddy NittanyLion The website address alone should be a massive red flag, Maybe, but there is a popular Ebay seller in China who calls himself WeHonest. How improbable is that? I have had several satisfactory transactions.
NittanyLion The website address alone should be a massive red flag,
Maybe, but there is a popular Ebay seller in China who calls himself WeHonest. How improbable is that? I have had several satisfactory transactions.
NittanyLionThe website address alone should be a massive red flag,
Henry
COB Potomac & Northern
Shenandoah Valley
ATLANTIC CENTRALWhat makes anyone think that a ligitimate business would be selling these items at such low prices?
Don't even have to get that sophisticated. The website address alone should be a massive red flag, unless you routinely are buying Sory and Roleks products.
tstage Hawks Rule Hello All, Here is another website with great discount prices, but it looks more legit. Anyone heard of this site as well? Locomotives (michnafh.com) "Korea brass HO GE U25C" - PRR, immaculate paint job & detailing, nothing bent or falling off - $95.00. THAT alone should send up a red flag that something isn't quite kosher about the product and/or prices. ALWAYS stick with a reputable dealer and you'll be happier in the long run... Tom
Hawks Rule Hello All, Here is another website with great discount prices, but it looks more legit. Anyone heard of this site as well? Locomotives (michnafh.com)
Hello All,
Here is another website with great discount prices, but it looks more legit.
Anyone heard of this site as well?
Locomotives (michnafh.com)
"Korea brass HO GE U25C" - PRR, immaculate paint job & detailing, nothing bent or falling off - $95.00. THAT alone should send up a red flag that something isn't quite kosher about the product and/or prices.
ALWAYS stick with a reputable dealer and you'll be happier in the long run...
Tom
Here is the exact same model, including pictures on eBay. It seems as though they have cloned an eBay listing.
https://www.ebay.com/itm/174435493494?hash=item289d2a6676:g:xCcAAOSwhnNfXykG
An "expensive model collector"
WARNING! It's a scam and I regrettably got bit. I ordered a UP 4-12-2 and got a $5. Junk toy. Also found out some of these so called scam detector sites are also a scam as they give so-so reviews but want money from you to report the scam.
http://www.trainboard.com/railimages/showgallery.php?cat=500&ppuser=5959
If one could roll back the hands of time... They would be waiting for the next train into the future. A. H. Francey 1921-2007
https://tstage9.wixsite.com/nyc-modeling
Time...It marches on...without ever turning around to see if anyone is even keeping in step.
JDawgI would say scam. The "about us" page is generic and has slight grammatical phrasing issues indictitive of a scam.
that is another clue - no mention of company name (and company name recognition is number one in marketing), generic info, etc. And, model train manufacturers do not make that kind of margin anyway. No way most of these things could be sold at these prices.
The site is a scam, while the site certainly looks to be real, it is not. There is a similar add posted for Horizon Hobbies RC planes, it too has the 80% off retail pricing. Horizon has confirmed it is not their site nor are they connected in any way. That site apparenlty has attracted over 3,000 purchases. BEWARE, if it looks too good to be true it is not. These scams are appearing too often, you have to wonder why the hosting site has not picked up on them.
Hawks Rulebut it looks more legit. Anyone heard of this site as well?
All the photos are copy > pasted from eBay.
Stay away.
Ed
JJF
Prototypically modeling the Great Northern in Minnesota with just a hint of freelancing.
Yesterday is History.
Tomorrow is a Mystery.
But today is a Gift, that is why it is called the Present.
The clincher is the 'returns' page.
Amusingly this site appears to have been built from a template for an online store using "Online Store" as the generic placeholder. This has many of the links as boilerplate... the RMA policy would have been one such: all the 'legalese' set up for best current practice. Except these guys edited it. Wrong.
Looks pretty sketchy to me. Brand new IHC locomotive? IHC has been gone for years (I know there is an IHC Texas, but not the same thing). New Athearn George Bush loco for $95.00? Goes for at least $200.00 at established train sellers.
If it's too good to be true.....
Clicked on the Facebook icon. Took me to Facebook, but not their page.
I saw their Facebook page - interesting - they changed the image to the trains, with link to website. Previous image was for learning products. Tried to look at those, but could not. Listed as an educational business.
now there are about 36 comments - most are adds for the BLI locomotives, some are from "consumers" talking about how great the trains are (especially the O gauge!). All comments were added between 12-1 and today.
SpaceMouseThe website seems like a lot of work for a scam that could be taken down at any momment.
If/When it is taken down, you will see almost the same website with a different name pop up shortly after. Same with the online dog scams. You can search for dogs and find 3-4 different websites with the same pictures of dogs available.
Click on the "about us" link - it is written in classic Chinglish, obviouly a scam site.
Hi Guys....yep i was sucked in and purchased....it is a total scam. They send you $5 Battery Operated Train ..... They reply with a computer generated response to say they are in Sth East Asia and send through China due to Pandemic... paid through Paypal so using Buyer Protection to claim back. Do not be sucked in like me .. It is a very proffesional site but total Scam..... !!
I looked at the site thanks to link provided here, wish it was a real site but it stole the logo from Modeltrain stuff and part of the body from Trainworld and another part of the body elsewhere. I don't think it is anything but a scam, dosn't even have the earmarks of a backdoor china operation.
I think the scammer is hoping that for every 9 buyers that file a chargeback thru their cc company or Paypal, that 1 buyer forgets about the order until the chargeback window is closed. Either that or they'll ship something worthless just to prove tracking/delivery and then the buyer will have to jump thru additional hoops to prove it wasn't what they ordered. In either case it's not a huge risk but a major hassle for the buyer. (ask me how I know)
I agree with the others the site is suspicous.
TheK4KidI also noticed they appear tobe located in both Australia and the UK or one or the other. Here is something to think about alsao.The electrical power system in both countries is different from ours here in the USA. So would one of these locos work on our 110 volt system, as the power transformer for them must be different than ours.
Whether the locols are made for the market in the US, Canada, UK, Australia, Europe, Russia or China etc doesn't matter the power actually supplied (12volt DC) to the track is the same. A 110 volt transformer made for the US market will run them.
The exception in HO is 3-rail (mainly Marklin HO from Gremany) which are AC and they make transformers for the US market .
I tried to sell my two cents worth, but no one would give me a plug nickel for it.
I don't have a leg to stand on.
hether the locols are made ifor the market in the US, UK, Australia, Europe, Russia or China etc doesn't matter. the power actually supplied to the track is the same.
A 110 volt transformer made for the US will run them.
gmpullman snjroy These might be locos that failed QC tests. Broadway Limited is one of the few manufacturers that has their own "Refurb Outlet" where previously defective locomotives are sold as having been repaired or possibly returns that get refurbished. I don't see why they would endorse any "off shore" outlet operation. Everyday my spam folder is chocked full of "big name" retailers and if I simply "click on the link" I'll be rewarded with huge savings, etc. By this time every internet user should be able to spot phishing scams. It is easy to build a site using readily available "genuine" graphic elements, i.e. the Model Train Stuff logo, annd reel in a few unsuspecting bargain seekers. Good Luck, Ed
snjroy These might be locos that failed QC tests.
Broadway Limited is one of the few manufacturers that has their own "Refurb Outlet" where previously defective locomotives are sold as having been repaired or possibly returns that get refurbished.
I don't see why they would endorse any "off shore" outlet operation.
Everyday my spam folder is chocked full of "big name" retailers and if I simply "click on the link" I'll be rewarded with huge savings, etc.
By this time every internet user should be able to spot phishing scams. It is easy to build a site using readily available "genuine" graphic elements, i.e. the Model Train Stuff logo, annd reel in a few unsuspecting bargain seekers.
Good Luck, Ed
As for the hours of operation, China's time is pretty much the opposite as North America. So customer service in China starts at 9:00 PM (or 21:00 hours), as it is 10:00 AM over there (at least in some parts of China).
Simon
MisterBeasleyM.B. Klein has greatly reduced their brick-and-mortar store and may have closed it completely,
Yes, I believe that the store has been closed for at least a year.
ATLANTIC CENTRAL tomytuna i think i may been have been stupid and been caught in their web. York1 One important life lesson is that if it sounds too good to be true, than it usually is bad news. It is a shame that so many people fall into these traps, but one reason (maybe not in your case) is that many people have a misguided belief that businesses make HUGH profits. That they sell things for $500 that only cost them $20 to make. The irony there is that if you believe that sort of thing, you are more likely to think extreme discounts are real, and be drawn in. In most cases, especially in a small market lke model trains, legit businesses are selling their products at the lowest profitable price. Sure, at the local yard sale, or other "disposal" sale, you get things cheap. But no one puts up an expensive web side to sell off unwanted inventory at a loss. Contrary to popular opinion, most times you get exactly what you pay for - or - you never get what you don't pay for. Sheldon
tomytuna i think i may been have been stupid and been caught in their web. York1
i think i may been have been stupid and been caught in their web.
York1
One important life lesson is that if it sounds too good to be true, than it usually is bad news.
It is a shame that so many people fall into these traps, but one reason (maybe not in your case) is that many people have a misguided belief that businesses make HUGH profits. That they sell things for $500 that only cost them $20 to make.
The irony there is that if you believe that sort of thing, you are more likely to think extreme discounts are real, and be drawn in.
In most cases, especially in a small market lke model trains, legit businesses are selling their products at the lowest profitable price.
Sure, at the local yard sale, or other "disposal" sale, you get things cheap. But no one puts up an expensive web side to sell off unwanted inventory at a loss.
Contrary to popular opinion, most times you get exactly what you pay for - or - you never get what you don't pay for.
I've had nothing but positive experience from the "real" modeltrainstuff site. I hope he can get this scam site taken down quickly based on all the copyright violations. People will order from the scam site, not get their orders and then complain to the real modeltrainstuff site.
No problem, I was doing the same, alerting others of a mist likely scam site. I had to just clear up a deal with Paypal where someone used my identity to set up a bogus account eleswhere and I was getting charged. I have Norton Identity theft which I am now finding out is absolutely worthless!
I cahnged over to PC Matic which works great!
They told me that Norton software is some of the worst protection you can purchase!
A friend of mine who is a top IT at DELL computers told me Norton slows your PC by at least 20% to 30% .Told me to get rid of it!
I had a go around with Norton on the 21st of JUly this year when someone hacked my Bank Debit card, and I had to go without my card for 3 weeks and cancel a trip I usually make every year.
When I first saw the very low prices on the scam train site, I knew it must be a scam! Like one post said, just before Christmas then they will disappear!