Online Dealers


I always try to order by a list that I maintain that includes everything from paints and hardware to track and buildings. When it gets to a total cost of at least $100, then I make an order. My local sales tax is 9% and many online shippers are now charging an $8.50 (sometimes more) shipping fee. You can see that the shipping in now covered by not paying the sales tax and my savings is what ever the discount is on the items.

Now, what irks me the most are those online stores (this is also Sears/Pennys/Cabela's/etc.) that the shipping charges are based on the total cost of the merchandise. Usually they are capped at around 12 - $15.00, but think about it: If I buy a transformer that weighs 8 pounds and cost $25, I will pay $8.50 for shipping. Now if I buy a loco and a throttle that cost $600 and weighs 1 pound, I will pay $15 or maximum shipping. There was a time that you got an added discount in the more money you spent, the less it would cost you to ship.

In defense of many LHS, I would like to say that I do understand that a reasonable, 'business sense' margin of profit is necessary. I have no problems with that, but there are so many that will charge an already inflated MSRP or higher price for their merchandise to the unwitting. I sympathize with an LHS trying to compete with online stores that do not have the overhead to pay out, but I don't think it is necessary for one to be located in a prime location shopping mall either. Have they ever thought about forming something like ACE hardware where they can order in large quantities and distribute to all owner members thus keeping their cost down?

I do not believe that the demise of an LHS is caused by you or I using online stores, but the rooted cause is instead the manufactures and distributors of model railroad items insistence to charge ridiculously high prices to the LHS. This is not only hurting the LHS, but also the hobby. Some economist will argue that this is based on supply and demand, turnover, shipping costs, import duties, and on and on ... Think again folks: Next time your in a WalMart, look at some of the "specialty" plastic items from China. Many have more materials used in manufacturing, more complexity than anything on your layout, and yet cost a fraction of what you would pay for an MR item.

Yikes! :eek: I have vented more than enough.
 
RexHea said:
Have they ever thought about forming something like ACE hardware where they can order in large quantities and distribute to all owner members thus keeping their cost down?
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Ewww remember Hobbytown USA? Look at how CRAPPY that business was. The stores were franchises, but the chain required that the owners have a certain amount of all items in stock, or they got charged some fee. I used to know the owners of the Hobbytown USA in Iron Mountian MI, they told me 50% of the crap they stock NEVER sells.
 
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Well, what I was suggesting isn't quite a franchise. A friend of mine owned several shoe stores in the area and when the large discount shoe stores started to become popular, he and other owners in the region had to do something to compete. The first thing was to buy in quantity. They formed a consortium of owners and would go to 'buyers conventions' to purchase shoes in large quantities, lowering their cost. Instead of buying only 10 pairs of 1 style of shoe, they would buy hundreds and warehouse them until they were needed . This kept them competing for a few more decades, but now there are chain stores that buy in the ten thousands.

Obviously, I am not a business man and it would be difficult to get the independent minded LHS owners to form something like this, but it may take this to stay open. Just a thought.
 
Well, I did it again. Ordered a bunch of stuff from Model Railcraft Supply Depot after I said I wasn't going to buy anything from them again. They moved to a new location & said everything on their web site had been revised. After I made the order on line I called them to make sure it was in stock. They said, everything that shows in their on line list was in stock. Welll, they lied again. Got an email this morning stating that only half of what I ordered was in stock & the rest was no longer being manafactured, although it showed 8 to 10 of that item in stock. They wanted to send me 2 of one item that they did have, but I only wanted one. Toy Train Heaven did me the same way about 3 weeks ago. I canceled the order & now I still need 2 powered trucks for an SD40-2(front & back). Am I unlucky w/online shops or what!!!!!!
 
I got another email from Jeff at MRSD after I cancelled the order. He said he had over 800 regular customers that didn't mind their backorders taking forever from Athearn & other places. He couldn't understand why I was canceling the whole thing. I hate backorders & everytime I order something I always tell them that.
 
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