Is Walthers ignoring N scale?

I welcome the feedback.

I certainly understand your perspective when it comes to offering a sale.

Yes, there are certainly cases when from a business perspective "We just got too much stuff". And yes then you've got to blow it out. You mark it down, take the financial whipping and move on. And of course we've seen that with the older style GP18's and the modular sections.

However, many sales, and I at one time, co-owned a small chain of consumer electronic/appliance stores, were "structured sales" that required the cooperation of our suppliers.

In essence, this is how it worked– our suppliers would give us an even better price on certain items and in turn we would throw extra advertising money at those products and offer them at a discounted price.

Walthers controls or makes money of the HO items they offer in their sale flyers, the result being their cost of goods is less for a locomotive that they have made for themselves as opposed to one they're distributing for Atlas.

Let's take a locomotive that retails for $100.

For an Atlas distributed locomotive, the retail shop is probably getting a 40% discount, so the price out the door at Walthers is $60 (to the hobby shop itself).

So what is Walthers paying for that Atlas locomotive? Probably $45-$50.

That doesn't leave much margin in order to put the thing on sale.

Now compare that with their own RS2. Again, we have a retail price of $100, but the cost is going to be much less than what they were paying Atlas... Probably in the vicinity of $25-$30. In other words a lot more "room" to absorb a sale price.

And this example is happening with everything that they carry in N-scale. The bottom line is the products they make themselves or control are much less painful to mark down for a sale as opposed to those they get from other vendors.

That sale flyer is expensive to produce, print and distribute. I was in the catalog mail order business for a while as a marketing manager. I know the costs. Again, it's another reason why the sale flyer is stocked with their own brands of HO goods as opposed to a few pages of N scale.

 

It's not relevant because...

1) Walthers isn't the only game in town,
2) This thread is 10 years old
3) There are other companies releasing superior n scale products.
4) This thread is 10 years old
5) Obviously the "email campaign" hasn't made a difference.
6) This thread is 10 years old
7) Nothing apparently has changed with Walthers and this community, you think at 11 years they will start listening?

 

Michael and of course all tuned in here.

Sounds like we are almost using the same excuses. Naw, that wasn't what I meant to say or was it? Grin.

Yes, business works the way you described but there's no excuse for what Walthers is doing and has done for the last 10 years. Clearly it is business as usual.

Incidentally the profit margin is a bit better then you indicated. Don't forget the middle men, the vendors and the cut they get.

One thing The Big "W" told me, back when I and others harassed them..."We have the N Scale book you can purchase it today if you wish". Always out to make the sale. You have to appreciate that. Grin!

That's ok.

I usually order from The Big "W," as the last resort. When everyone else is out of a particular item... I can usually find it at Walther's. Oh, do I pay for it.

Good to have them on board with N scale. Just wish they'd give us a bit more attention...waaaahaa!