Large Scale Central

Aristo price gouge

General Discussion
#21
Tim Brien said:
[i][/i] However, what I am most disappointed in is the immediate passing on of the cost increase by dealers on existing inventory. I consider this unethical as the goods have already been invoiced and so the cost increase is a 20% windfall in their coffers. It is possible that I am simply naive to the realities of life. [i][/i]
Tim - I don't disagree with you but I have been told by dealers that they need to do this to be able to afford to replace inventory that is sold. If you think about it, that does make sense for a small businessman that has limited capital. Example: If I sell you an engine at $200 that originally cost me $175 and then order up a replacement at $210 (+20%) not only do I not have any profit left from my sale to you, but I have to invest $10 from other product sales just to maintain my inventory level. Doing it the way you and I think is fair ends up causing inventory shrink in number of SKUs while maintaining the same dollar value.

I think this is why gasoline prices rise at the pump the second wholesale prices rise. They need to have the cash to fill the tanks at the higher price. Locally it seems like they do the same on the way down which is good for the consumer. This does not explain why the price of gas continues to rise while oil falls like a rock.

#22

I honestly can’t deal with the prices from last year let alone an increase this year. I won’t be buying anything new for a long long time.

Jon.

#23

You could always go this route

(http://i37.tinypic.com/j6q044.jpg)

Thw nice thing about a garden RR is once you have a layout there is aways something to do to it like garden ect…

#24

Shawn I like that one…from the wheels up :wink: dont know about that track :open_mouth:

Whatever the cause is irrelevant to me, its the lack of sufficient funds to buy even replacement parts is for me a deal buster on future purchases. I’ll be buying alot less this year, nothing major thats for sure.

For now I’m going to have to have a long hard look at my roster, my plans and my ultimate long term goals and decide what stays, what get kept for spare parts, what non-canon items that dont fit my theme or era get sold off.

#25

Jon, I don’t quite agree with your logic… I know it makes it more difficult to purchase replacement stock, but it’s normally the profit on the money invested.

Buy loco at old dealer price, sell at old street price, make profit… now spend more money for new stock, and get profit from new prices…

This means higher cost to buy new stock, but selling at higher price will give same profit margin.

If you sell old stock at new price, you are making higher margin on old stock, gouging in my opinion…

Regards, Greg

#26
Jerry Hansen said:
Terry time to go to z scale or that new one guage slips me but is way smaller than z. Then you can have a whole rr empire in your desk drawer!! Hee hee LOL The Regal
You mean 'T' scale? Model trains to a scale of 1/450....................

Awesome stuff!!!

Saw it at a demo last november, and was blown away by the detail. Even got working switches now, as well. It’s called ‘T’ scale on account of the track gauge - THREE MILLIMETERS!!! :open_mouth:

Mind you, it is replicating the usual Japanese standard gauge of 3ft 6in, so I 'spose we could really call it narrow gauge…

Sadly, as I get older, my eyes are getting smaller and my thumbs are getting bigger, so it at least Gauge 1 For me, even though i dearly love my H0 stuff.

tac

#27
Greg Elmassian said:
Jon, I don't quite agree with your logic... I know it makes it more difficult to purchase replacement stock, but it's normally the profit on the money invested.

Buy loco at old dealer price, sell at old street price, make profit… now spend more money for new stock, and get profit from new prices…

This means higher cost to buy new stock, but selling at higher price will give same profit margin.

If you sell old stock at new price, you are making higher margin on old stock, gouging in my opinion…

Regards, Greg


Greg - I don’t disagree that maintaining old prices on old stock is the higher moral ground. What I was trying to do is illustrate the small dealers problem with rising prices. Many dealers can’t afford to keep growing the total dollars invested in inventory, so as prices rise, the number of SKU’s must drop UNLESS they invest profit back into inventory. It’s a catch 22 situation the way I see it. Screw the customer to save the business, or be a good guy and fail because profits are eaten by rising costs.

I’ve been in retail management (thank God not for a long time) and if I was running a store today I’d have to consider taking the low road in order to maintain my inventory levels.

#28
Victor Smith said:
Shawn I like that one...from the wheels up ;) dont know about that track :O

Whatever the cause is irrelevant to me, its the lack of sufficient funds to buy even replacement parts is for me a deal buster on future purchases. I’ll be buying alot less this year, nothing major thats for sure.

For now I’m going to have to have a long hard look at my roster, my plans and my ultimate long term goals and decide what stays, what get kept for spare parts, what non-canon items that dont fit my theme or era get sold off.


Vic could this be a possible future kitbash.

#29
Jon Radder said:
Greg Elmassian said:
Jon, I don't quite agree with your logic... I know it makes it more difficult to purchase replacement stock, but it's normally the profit on the money invested.

Buy loco at old dealer price, sell at old street price, make profit… now spend more money for new stock, and get profit from new prices…

This means higher cost to buy new stock, but selling at higher price will give same profit margin.

If you sell old stock at new price, you are making higher margin on old stock, gouging in my opinion…

Regards, Greg


Greg - I don’t disagree that maintaining old prices on old stock is the higher moral ground. What I was trying to do is illustrate the small dealers problem with rising prices. Many dealers can’t afford to keep growing the total dollars invested in inventory, so as prices rise, the number of SKU’s must drop UNLESS they invest profit back into inventory. It’s a catch 22 situation the way I see it. Screw the customer to save the business, or be a good guy and fail because profits are eaten by rising costs.

I’ve been in retail management (thank God not for a long time) and if I was running a store today I’d have to consider taking the low road in order to maintain my inventory levels.


Groceries and gasoline have always marked up prices on old inventory.
Now almost everyone else is doing the same. I see it everywhere from hobby shops to hardware stores.
Ralph

#30

Gentlemen: It is TIME TO BUY AMERICAN! Keep our dollars here in America and not overseas to ‘them’ Paul

#31

So stop buying imported “stuff”.

Errr!!!

Well, not all imported “stuff”. :wink:

#32

Shawn said:
[ Vic could this be a possible future kitbash.

Not likely, got no spare lokies and second hand Porters are getting rarer by the day. If I can find the proper parts I’ll give Bear Harbor #1 a go, but not this one methinks.

(http://www.gearedsteam.com/other/bear_harbor_1/images/bear_harbor-full-right.JPG)

#33

Vic,
One of the Heartland motor blocks, the one with just one axle and gearbox would work great. The wheels pull off and you can put on the wheels you want. They are only about $25 and work great. You probably have the rest of the Bear Harbor parts in you spare parts box. Few clock gears and you are having fun!

#34

Wheels are an issue, Jerry. to work best Porter sized wheels would be great but I’d have to dig for some, I already have that drive motor, it has thinner axles than most locomotives. and I already have a full plan from the Gazette, all I need is the time, which is not mine anymore.

#35

Trainworld has an Aristo price ‘blowout’ sale - funny how all the prices (other than the ‘Valley Flyer’ Pacific and the Christmas 0-4-0) are the prices as of Dec. 31st 2008, prior to the 20% price rise on all inventory on Jan. 1st, 2009. When is a blowout sale not a blowout sale???

#36

That be called marketting that be.

#37
Tim Brien said:
What I am most disappointed in is the immediate passing on of the cost increase by dealers on existing inventory. I consider this unethical as the goods have already been invoiced and so the cost increase is a 20% windfall in their coffers. It is possible that I am simply naive to the realities of life.
A year or so ago, a US on-line retailer I deal with did this. Shortly afterwards, I wanted to buy four carriages, but at the old price, and sent him an eMail to that effect.

As the items I wanted were definitely in stock when the price went up, and I’d given the retailer a fair bit of business, he gave me the gear at the old price.

I wouldn’t call raising prices on existing inventory unethical. However, when you notice it, keep a note of the old price. Especially if you want to buy shortly after the price has been raised, asking the question is always a good idea.

#38

When I bought the Mack that became the Mining Mack project, my seller, somewhere in Upland :slight_smile: also had both Aristo drive bricks, the Centercab and the FA1, for sale at the old, pre-stickitouya prices! The guy even said “you better get em now, they’ll be twice the price when we restock’em” Thats why I like buying from this outfit whenever I can. So I bite the big budget bullet and got both of them, but hopefully I’m done with any new bricks for awhile.

#39

This isn’t just Aristo doing this type of thing and the Gov’t wonders why folks aren’t spending any money? Same used car on the lot across the street climbs price almost weekly. Hmmm? I don’t think it’s moved? They brush the snow off and raise the price. LOL!

I don’t think that increased the value of existing inventory?

The TV I was looking t for my mother at christmas time is already up over $100 at Walmart. No thanks. IF I buy it I want it at the pre-Christmas price. It was not a sale price either!

I seem to remember Aristo Locos around $100 not too long ago. Now the track & rolling stock is approaching that price. My money stays in my wallet for now thanks.

Chas

#40

I’ve got all the cars my layout can handle on one long train, so why get any more? Don’t have that many locos, but I could run a different one each day for a week before repeating, so do I really need anymore? Making my Challenger, just for fun and it’s from all used stuff. I’m sure most of us can do fine with out any new items, just buy parts for what wears out, if you can find them.