First Annual Lionel Warehouse Sale

So this warehouse, just outside of Charlotte, NC, is the main distribution warehouse for Lionel?

Jim

Ah, Geez . . . you had to to tell me about this.  Only two hours and 15 minutes away . . . .

WOW.....I had no idea Lionel had anything in NC. I lived within a few miles of there for many years. I may have to make a trip.........

Lee....where are you at??? Maybe I'll see ya there!!!!

Lionel sent out a message in June 2012 stating all their shipping and railroad club activities would be moving to concord nc. Has not bee there more then a year.   when I get trains from my dealer if they don't cross out the address completly I used to see an address in PA now I see the concord NC address. 

Seems like I'd be keeping this kinda quiet, the less of us that know, the greater chance of getting something! or somethings! ha!

Buy something with me in mind, because you can count me out... the 13 hour drive is a little too far, although I have driven over 5 for love (But thats a different heartbreak story).

Thanks,

Mario

If I were a LHS in NC, I wouldn't be too happy with L...

Yes... This strikes me as a somewhat strange move on L's part, since their "normal" MO would be to route excess warehouse inventory through large dealerships like Charlie Ro and such.

Nicks, scratches, and factory-refurb stuff is one thing for selling direct-to-the-public at bargain prices.  But circumventing established sales channels for regular inventory is never a healthy move -- especially when those sales channels are still carrying inventory purchased at higher cost than the general public can buy at a "factory warehouse sale".

In all likelihood, what Lionel plaNS to sell at this event may dot directly compete with identical products at LHS's.  Nonetheless, if I had a store within an hour or two's drive from Lionel's warehouse, I wouldn't be too thrilled to hear about this.  No business is without it's issues these days!!!

David

If it's Lionel's warehouse and their merchandise, why shouldn't they be allowed to sell what is not normally moving through the regular distribution network? Bring people in looking for a high end engine, and they might leave with that and a few low end sets to give away. 

When I worked in retail, that was the way you made room for newer merchandise.  It works for wholesale too.

Wonder what real deals are available?

Gunny

If it's Lionel's warehouse and their merchandise, why shouldn't they be allowed to sell what is not normally moving through the regular distribution network? Bring people in looking for a high end engine, and they might leave with that and a few low end sets to give away. 

Tim, because it really ticks off their distributors, especially if the manufacture blows out merchadise at a retail price lower than the LHS pay wholesale.  Its one thing for the retailers to be competing against one another for sales, and another to be undercut by the manufacturer. 

Jim

FWIW, Lionel has been doing things like this for years, "under-cutting" their dealer pricing to the general public. It just has, "1st Annual" this time around. We the hobbiests complain about our LHS prices. With comments like, "If our LHS would lower their prices I would buy". Think about it, in most cases if they lower their prices by much they would be selling well below their cost from Lionel. I've been active in this wonderful hobby well over sixty-five years. In the early years my grandpa took me with him to our LHS. I remember listening to the "horror" stories about Lionel's "dirty-deals" to their retailers....By the way, this was in the 1940's. Nothing new except for the wording.. Something else to think about. At the time of year when most retailers make 45% of their yearly income, Lionel does a stunt like this. Especially since they had to order and in most cases, confirmed non-negotiable prices for their holiday Lionel order upto eight-months in advance. Now then, who's getting the "dirty" end of the stick again? One thing for sure, it's not the consumer.

OK... so here's  an interesting turn of events...  Just after posting my comments above, I received a mass-marketing email blast from Charles Ro highlighting a bunch of Lionel Ready-To-Run O Gauge train sets for sale -- stuff that's prime for Christmas shoppers looking to get starter sets in the hands of young kids.

Here's two examples from the Charles Ro email: 

Thomas & Friends set:  $124.95

Pennsylvania Flyer:      $189.95

Now what does Lionel do in their brilliant move to have a one-day warehouse sale?

Thomas & Friends set:  $99

Pennsylvania Flyer:      $149

WAY TO GO, LIONEL.     Somebody, PLEASE tell me that the sets Lionel is selling at their upcoming warehouse sale are "factory seconds" or refurbs.  OTHERWISE, why would they undercut their own, touted to be "America's Largest Lionel Dealer"???  That's got to be the most stupid marketing blunder I've seen recently.  If it's true, then I'm now completely convinced nobody is minding the store -- figuratively and literally -- at Lionel.

What part of this picture am I missing???  Yes, I realize the warehouse sale will likely only draw folks within a certain travel radius.  So yeah... it's not gonna compete with the crowd who will typically buy from Charlie Ro.  But it pretty much goes without saying that they'll CERTAINLY be competing with the smaller mom-and-pop LHS's much more local to the Lionel warehouse in a VERY big way.    I wonder how quickly they'll want to order more Lionel stuff next year???

David

I look forward to this sale. As to our local dealers, I find nothing but high prices and poor service for the most part. Stopped shopping them long ago.

Its a scratch and dent sale for stuff the dealers don't want.  Example, you think any dealer wants a Thomas set with out the remote capability?  So guess what Thomas sets they'll be selling out the warehouse door.  Nothing nefarious here folks, move along.

the thomas set lionel is selling is not the same one that charles ro is selling.  lionel is selling the regular set.  charles ro is selling the remote set.  my comments are based on the list price from the flyer.

http://www.lionel.com/Products/Finder/ProductDetail.cfm?ProductNumber=6-30069&expandBranch=0&Keywords=thomas%20and%20friends&CategoryID=0&RailLineID=&CatalogId=

This might be what the meant to say, but its not what the copy says, "Save 50% and more on Ready to Run trains sets, open stock, track pieces, scratch and dent product PLUS discounted NASCAR DIE-CAST CARS!" 

Jim

As someone who works for a technology company that does both direct sales and partner/channel/dealer sales, to me it represents the ultimate enigma.  

Direct sales are largely (very) efficient.   There's not a lot of differentiation in the marketplace and the name of the game is mostly volume.   It allows you too keep prices low and margins reasonable.  You need a warehouse, some people to take orders, and a website.  There are some logistics, but it's a pretty clean operation.  It's not all upside though, as you do tend to lose touch with customers and some people are only willing to spend so much without being able to see/touch/test any product before buying.  QC can become a real issue, because if there's no one out there to service your product, you have to do it yourself.  Returns become a different logistical nightmare all their own (there are companies that literally handle ALL of this for many famous brands and make a lot of money doing it; we use one...).  

The idea of the reseller is that they are ultimately closer to the customer (physically and from a relationship standpoint) and can offer services that we are unable and or unwilling to provide at a competitive price.  These services, in theory, are where the reseller really makes money.  In my neck of the woods, the only real "service" the LHS is able to provide is repair; that's a big deal, but there are only one or two that are certified that I know of, and I was shocked when one of them told me that he gets nothing for a warranty repair but the parts!!!  No labor; nothing.  That just blew me away! When my car needs warranty work, the dealer gets the parts, and a set rate for the job.   (Would love for someone to confirm/deny this [MTH];  it just seems bizarre)

Basically I guess what I'm driving at here is that I don't see much of a reason WHY some of the LHS's stay around except for love of the hobby, and love doesn't pay the electric bill.  

(Note that in most cases, if we have a blow-out direct sales deal, we will offer equal inventives to any dealer/reseller carrying inventory - they can sell at the lower price point and not take a beating.  Not sure this happens in the hobby market... )

Does this remind anyone of the Williams fiasco from the 1980s?

Williams absolutely killed me with that sale.

I had just upped for several big articulated steamers and Williams sells them for half of what I paid one week later. The dealer thumbed his nose at me. I never forgot that.

Scrappy

Lionel does one train/blowout sale for the holidays and everybody flips out?  RMT did this with there  dealer network and no one seems to care,but when lionel hosts a little sale.......

Just relax its a little holiday train sale,and a chance to sell excess stock.  If they were blowing out all there high end locomotives i would be concerned.

I'll be at the TCA meet in Raleigh on Saturday. Though I wouldn't mind driving down to Concord to see what's there since I can't make the open house Lionel runs in Ohio durning the summer. 

I don't think the clearing out of items from a warehouse of items that cannot be moved through the normal distribution retail chain for once a year is either manipulative or a cause for hand wringing, or is intended to destroy their sellers.

When I posted this I had in mind, that this was an opportunity for some potential bargains. Nothing more, nothing less. I cannot attend as my wife just had knee surgery and although I have no interest in buying anything, it would have been fun just to browse around for odds and ends. Famous last words before the wallet comes out. 

I hope some folks that do attend post some reports..maybe some of us ( like me) can give it a shot next year.

RMT did this with there  dealer network and no one seems to care,but when lionel hosts a little sale.......

I did complain about this but people jumped all over me! Instead I just blew out the whole line. Companies (IMO) that sell direct.... well ask me in person and I will tell you.

Here's a video showing the sign to the Lionel warehouse. Even though it's a wrestling video and shows a beatdown in a parking lot,it should be of interest.

http://youtu.be/6_KCuwQrsmw

My neighbor has a very young grandchild and we were just now talking over the fence about him. I asked if he had any interest in trains. The reply was all kids love trains. I told him about the sale, and he was interested. If a unsalable starter set is to be had at a good price, like many of us, it could lead to a lifetime hobby and future purchases. All of this negativity poised toward Lionel as sour grapes by way of unsolicited advocacy on the behalf of hobby shops is not what would call constructive, rather a sort of Monday morning quarterbacking. I think is someone queried Lionel directly as to the nature of the items being discounted, all of this drama could be potentially avoided. You can please some of the people some of the time but you cant please all the people all the time.

I spoke with one of the tweleve dealers in the country that buy direct from Lionel and found out that the Thomas and Pennsylvania sets listed as samples in the Lionel ad are the same sets he has in his shop, not some unsalable inventory Lionel is trying to dump.  Lionel didn't let their retailers know they had this planned.  It looks as if in this instance Lionel is undercutting it's dealer network.  The LHS is becoming harder to find as it is without the manufacturers selling direct to the retail market at or below wholesale prices.

I don't imagine you are the only hobby shop owner who feels the same about this situation.

Joe...would you mind listing those twelve dealers that buy direct from Lionel?  If you'd rather not post them here, my email is in my profile.  Thanks.

I can see that LHS in the area might be ticked but I can't spend $100.00 on gas to save 50 bucks on a train set. Plus 6 hours (each way) in the car.   I was headed for the Timonium train show Saturday to buy 2 (two) ARTTISTA figures.  I ordered them online and got them for cost and $5.00 shipping.  I saved a one hour drive, admission fee, and gas money.  I guess I am just not getting the logic of folks dumping on the big L for selling stuff that probably can't be moved otherwise.

Great point!

Any body go?

I'd like to know too!!!! I am going down in a few weeks so a trip now was a NO........I'd think if anyone went and got any deals they'd tell about it here!!

People started lining up after 6am. By the time the doors opened at 8am there were 150 to 200 people waiting and the line wrapped around the building. There was a good mix of NASCAR collectors and train people but after the initial rush many more train people were coming. There was two long tables filled with old new stock merchandise some dating back to the MPC through a few years old. They said this had been found here and there as they cleaned out the Michigan facility. Prices for rolling stock ranged from $2 for starter set cars without boxes to $25 for unpowered B units and stationsound cars. I got a scale TCA Great Northern woodside reefer for $10, Die-cast NYC hopper for $25 and a BN TMCC Crane car still factory sealed for $25. Starter sets ranged from the old Thomas set for $99 to Harry Potter for $249. Polar Express and the The Three Rivers Fast Freight Set at $199 were the best deals IMHO. Other prices included The Scout Set for $125, Pennsy Flyer flyer for $149, NYC Flyer with Railsounds for $199 and some other sets for between $149 and $199

Thankyou for the update. I really wanted to go but we had made plans for something else several weeks ago. It sounds like it was quite a lot of fun.

Although only 20-miles away I did not go since I felt sure there would be nothing of interest for me.  But ran into a fellow local O-Gauger at the Local Train Shop just returning from there.  He picked up four Beatles box cars for $100.00.  He said place was packed with long lines at check out.  So many must have found deals and stuff they wanted.

I wonder if we collectively underestimate the power of the human psyche when it comes to the "blowout/factory direct/once in a lifetime" hyperbole that drives the types of sales events.  Ultimately, as someone already stated, it's usually merchandise that couldn't be moved for one reason or another.  Experience dictates that these types of sales attract a type of consumer that probably wouldn't have bought the item any other way.   Lots of people are just drawn to the "killer bargain" whether or not they really had a need/want for the item.  Would most of these deal hunters set foot in an actual LHS if it weren't for the sale?  I don't know, but I tend to doubt it.  Regardless, if it helps create a few unintended train geeks, then there is some benefit in the end.  

We haven't even scratched the surface of the question pertaining to what Lionel or the lHS is supposed to do with merchandise that no one wants.  I have a couple of LHS's in my area that have some very old stock on the shelves;  at some point either you have to blow it out one way or another if for no other reason than to make room for new inventory.  Either that or you sit on it indefinitely, which has its own implications.   

I only brought 4 item 2 where for my Dad's Christmas present.

I got my self an operating BNSF Refrigerator car and a scale Southern Crescent Limited pullman to add to my Crescent Limited set. Both cars where $15. I got my Dad a Santa Fe tool car  for $15 and a American Flyer Baldwin switcher for $25.

As for my Dad he pick up 12 pieces of long straight fast track 4 for a $1.00.

7 American Flyer cars for $5.00 each. a Scale Santa Fe Alco PB-1 for $25 a FEC Stationsound aluminum dinner car for $25. A open box PWC Mercury Capsule Launching car for $5.00 and he got my son a Lionel Jr Train Set for $35 and an Engineer Hat for $2.00. Over all it was well worth the trip. I'm also glad to hear that they will be doing the sale again next year.

Wow, sounds like some great deals! I wonder how many of the sale items are now on ebay?