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ExactRail Changes Business Model to Direct Sales

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Posted by BRAKIE on Tuesday, April 3, 2012 7:00 AM

rrinker

 The Trainman kits are the Branchline Yardmaster kits they got from aquiring Branchline's rolling stock line. They have also re-released many of the Blueprint series kits, using the Branchline name for those.

                    --Randy

 

Absolutely!

But.

The Berwick 50' boxcar has already be release as a RTR car..I suspect the other Blueprint cars will be released as RTR as well..I highly suspect the current stock of Blueprint kits to be the last of their kind.

Atlas could go either way with the "Yardmaster kits" depending on sales but,they won't loose money on a stock pile of kits.

My advice? Better hurry and buy those kits while you can.

 

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by rrinker on Tuesday, April 3, 2012 6:50 AM

 The Trainman kits are the Branchline Yardmaster kits they got from aquiring Branchline's rolling stock line. They have also re-released many of the Blueprint series kits, using the Branchline name for those.

                    --Randy

 


Modeling the Reading Railroad in the 1950's

 

Visit my web site at www.readingeastpenn.com for construction updates, DCC Info, and more.

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Posted by BRAKIE on Tuesday, April 3, 2012 6:21 AM

CP5415

Hmm, don't recall mentioning anything about being prototypical!

Didn't mention ExactRail either!

What I was trying to convey is that Accurail still makes kits, inexpensive kits at that. Made in the U.S.A!

The prices over their kits haven't changed that much since the late 90's.

 

You want kits better look at Atlas Trainman kits..

I suspect you better hurry and buy some of those Trainman kits before Atlas tires of loosing money on kits and adds them to the RTR line.

There's still  tons of BB kits available.

Larry

Conductor.

Summerset Ry.


"Stay Alert, Don't get hurt  Safety First!"

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Posted by jsanchez on Tuesday, April 3, 2012 12:17 AM

Another cost they will incur is they will need a larger staff to process orders,pack products, handle returns, answer phones, etc. Folks expect their products shipped quickly nowadays. I know of another manufacturer that is having a lot of problems with getting orders out promptly due to limited staffing, I imagine they will be in the same boat and Matt is like most customers they bundle orders to get the most bang for the buck. 

James Sanchez

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Posted by Mark Watson on Monday, April 2, 2012 11:30 PM

I fully agree with you James.

Combating rising costs by killing your market distribution is, frankly, idiotic. When they can no longer rely on those hundreds of dealers purchasing units, they'll have to begin producing less.  And when they produce less, costs per unit will go up even higher!

Do they really believe customers will take the extra time and spend the extra shipping to buy direct.  I shop specifically to bundle so that I SAVE on shipping.  If a product isn't available at any of the various online/local hobby shops that I browse, the product doesn't exist.

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Posted by riogrande5761 on Monday, April 2, 2012 11:26 PM

CP5415

Hmm, don't recall mentioning anything about being prototypical!

No, but you did mentioned that we "allegedly" wanted RTR models, as if it was only a supposed truth rather than reality.  The RTR trend is a response to market demand - it's simple really.

For those who want kits, train shows have tables and tables of them in boxes getting worn out from all the trips to the shows.

Now, what was the title of this topic?

Rio Grande.  The Action Road  - Focus 1977-1983

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Posted by willy6 on Monday, April 2, 2012 11:21 PM
I work in manufacturing. In the past 2 years our supplier prices have increased and shipping costs have increased due to fuel prices.I'm not a CEO or economic genius,but to maintain a profit margin to remain in business there has to be some give and take to maintain a strong customer base.It all comes to "quality versus cost".
Being old is when you didn't loose it, it's that you just can't remember where you put it.
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Posted by jsanchez on Monday, April 2, 2012 11:15 PM

  I for one am disappointed in this announcement. I liked carrying some of Exactrail products while not the best selling brand in the world, it didn't do bad either, the quality was very good. I can not see this working out for them. People still like to see product in the stores and Internet buyers usually by more than one brand or types of products while shopping online(cars, structures,figures, etc). I think this move will handicap them, the companies that seem to do well use as many outlets as possible to move product whether that is Hobby Shops, E-bay, Amazon, train shows, direct sales. I think this is like cutting off a limb. Hundreds of dealers like me helped promote this company, now they have foolishly thrown that all away! Possibly part of the problem is they only offer higher end products, maybe they should have tried a  Walthers Trainline or Atlas Trainman type budget product line. People's spending money continues to shrink due to rising gas prices, health care , food, taxes you name it. I agree with the fellow who mentioned Accurail as good economical brand, I think a lot of folks are reconsidering kits and lower costs alternatives, some surviving shops are doing great with used product sales.

James Sanchez

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Posted by blownout cylinder on Monday, April 2, 2012 11:06 PM

I don't see the need for a bickerfest over it...

A LHS near here started dealing with Exactrail the same way as with a few others...no big whoop here.

Any argument carried far enough will end up in Semantics--Hartz's law of rhetoric Emerald. Leemer and Southern The route of the Sceptre Express Barry

I just started my blog site...more stuff to come...

http://modeltrainswithmusic.blogspot.ca/

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Posted by CP5415 on Monday, April 2, 2012 10:37 PM

Hmm, don't recall mentioning anything about being prototypical!

Didn't mention ExactRail either!

What I was trying to convey is that Accurail still makes kits, inexpensive kits at that. Made in the U.S.A!

The prices over their kits haven't changed that much since the late 90's.

 

Brought to you by the letters C.P.R. as well as D&H!

 K1a - all the way

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Posted by riogrande5761 on Monday, April 2, 2012 10:02 PM

CP5415

The costs have risen for this hobby because of all the RTR items we allegedly wanted.

Allegedly?  Whoa now, don't you think the manufacturers are simply responding to demand?  Allegedly?  Lets be honest about this, we the consumer have large back logs of unbuilt kits and are happy to buy RTR models - I'm one of them.  Even our venerable John Armstrong admited back in the 60's and 70's that the typical modeller had far more kits than he had time to build.  So don't give me alleged.  Thats like saying we can allegedly fly to Europe on a 767 - oh yeah, I flew to London to meet my "now wife" on one of those.

I've introduced my LHS to Accurail which is a model maker who hasn't caught on too much in Canada. At least not from what I have seen.

This allows me to keep the piece of the pie that Athearn & Roundhouse abandoned when they went RTR exclusively.

Thank you Accurail!

Yes, well, maybe ExactRail doesn't make enough Canadian prototypes or else I imagine they would be more popular up in the great white north.

W/E

 

See Atlas HO forums for about 8 or 9 pages of discussion and hand wringing!

Rio Grande.  The Action Road  - Focus 1977-1983

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Posted by CP5415 on Monday, April 2, 2012 9:46 PM

The costs have risen for this hobby because of all the RTR items we allegedly wanted.

I've introduced my LHS to Accurail which is a model maker who hasn't caught on too much in Canada. At least not from what I have seen.

This allows me to keep the piece of the pie that Athearn & Roundhouse abandoned when they went RTR exclusively.

Thank you Accurail!

Brought to you by the letters C.P.R. as well as D&H!

 K1a - all the way

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ExactRail Changes Business Model to Direct Sales
Posted by Espee Black Widow on Monday, April 2, 2012 9:31 PM

I received an email today from ExactRail stating that due to higher production costs, they are eliminating their dealer network and moving to direct sales. Apparently they have been experiencing an increase in production costs and feel to stay competitive, they need to eliminate the middle man, in this case the retailer.

"As of May 1, 2012, ExactRail will no longer offer a dealer discount and will discontinue our dealer network. Cost of production has increased considerably for ExactRail over the last two years. We have absorbed most of these increases through our margins, however this is not a supportable model for our business. Our conclusion is that we can keep prices reasonable by serving you directly. We believe we can both benefit from having direct interaction. "

I would imagine that this is probably not too well received by the Hobby Shops. The LHS rely on offerings by the popular manufacturers to bring traffic into their stores. With ExactRail going to direct sales, there is now one less manufacturer to help create that traffic into the hobby shops or even for the internet based retailers. It also says to me that the costs associated with our hobby are on the rise and time will tell, but we will probably see other manufacturers increasing their prices or also going to direct sales to stay profitable.

Guess we will have to wait and see what the future holds for the hobby.

Pat

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