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Is there a list of Key Importers?  Why no dealers list on the Key website?

What is the secret? Sometimes I have a customer who is looking for a Key item and it would be nice to be able to give them a list of dealers so that they can contact them to see if they have what they are looking for.

Just curious,

Stephen

Original Post

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NW2124,

 

The brass business is based on you, the customer, making a deposit and reserving a model.  IMHO, pick one and stick with that dealer.  

 

I worked at Caboose Hobbies and Roger Lewis (Wasatch) was a member of the Denver Society of Model Railroaders, so i can recommend either of those 2 based on personal; dealings.  I have also purchased from Merlin at Caboose Stop and will only say positive things about him.

All that is going on here is that I am trying to make a list of all the Key Importers so that Key customers can contact other dealers to find in stock items. Nothing more and nothing less. I am doing this to help people that are having trouble finding Key items as the website does not provide this info. I do this with other importers by directing customers to other dealers. This is what we call customer service. I will not reply to inept comments. Stephen

The problem with hobbyist- dealers (and I have been one) is that they typically enter an agreement so they can get dealer net for their own models, then sell a few to friends for not much markup.  So it is in the importer's interest to not publicize these folks, and simply sell retail to those without a friend with a dealer agreement.  As pointed out, the difference is not much, percentage- wise.  The product is often shipped directly to the end customer, and the dealer makes his hundred bucks or whatever from a telephone call or two.  It is not a good business model if you want to make a living at it.

 

I used my "dealership" to do product reviews - something I found entertaining.  Not terribly profitable.  I don't do it any more - I do product reviews when asked.

 

Opinion.

Originally Posted by bob2:

The problem with hobbyist- dealers (and I have been one) is that they typically enter an agreement so they can get dealer net for their own models, then sell a few to friends for not much markup.  So it is in the importer's interest to not publicize these folks, and simply sell retail to those without a friend with a dealer agreement.  As pointed out, the difference is not much, percentage- wise.  The product is often shipped directly to the end customer, and the dealer makes his hundred bucks or whatever from a telephone call or two.  It is not a good business model if you want to make a living at it.

 

I used my "dealership" to do product reviews - something I found entertaining.  Not terribly profitable.  I don't do it any more - I do product reviews when asked.

 

Opinion.

If the Importer makes the same amount from a sale regardless of what price the Dealer sells for, seems to me it would be to his (the Importer) benefit to have all dealers known. The more sales, the more the Importer makes. (read on please)

 

I understand that if the Importer sells directly to the customer at retail, (which I assume to be a markup over dealer price) then the Importer would make the extra profit usually taken by the dealer.

 

The flaw in that scenario in this particular case is that Key Model Imports does NOT do direct sales.......or am I mistaken? Do some select modelers enjoy the privilege of buying direct?

 

Based on what is stated above, seems like it would be to the benefit of the Importer to have all dealer outlets known, because the more he sells the more he makes (assuming he is NOT selling direct to the consumer or below cost).

 

Opinion

 

Simon

Well, my customers had the choice of ordering through me, or through the importer.  The price difference was only about ten percent.  If I did not charge what the dealer said was retail, then I would be damaging the livelihood of other dealers.  But don't forget - I could get my own models at a discount.

 

I have no idea what Key does, and I am not a Key dealer.  I admire their models, but cannot justify them for my hobby.

In high end brass, it is not a massive discount.  It is around ten percent, or even less, and not worth the hassle.  Normal markup is closer to double - perhaps that is the MTH and Lionel markup.  If you can get a nice model for $1100, and some local guy gets it for you for a grand plus 8% local tax, what's the difference?  It may be wiser just to order direct. Opinion.

The brass market and small dealer discount has always been this way, at least by my experience since the early 90's; although a lot has changed in the past 20+ years. A 10% mark-up or commision on the sale of a $1000 to $4000 locomotive isn't a lot of money when you consider the (dealer) is on the line if his customer (who ordered) isn't able to purchase when the model arrives. The dealer still has to purchase from the importer and resell the model to another buyer. Plus you have to be on the line for the shipping costs to you, tax if applicable and fight the shipper for any damage that might occur in transit. So, I don't begrudge the mark-up the dealer makes to sell me a new loco (when and if I buy one). There were a lot of small dealers back in the day that don't exist today.

 

The used brass market was a whole lot more lucrative than new brass until eBay arrived and might still be in some cases today. I used to buy and sell used brass in the 90's as it was the only way I could afford to get what I wanted. I'd buy a group of models or small collection and sell off what I didn't want so I was in a better position financially on a keeper or two.  Many times I'd buy a collection and let friends have what they wanted so we all got a better buy. It as all very transparent so there were no hard feelings. But, that was back in the pre-internet days. With the advent of eBay many models we thought were rare became common place and values tumbled. I got out of the used brass business in 1998 and only rarely buy anything these days. 

 

But, if anyone wants to become a dealer in brass trains these days the market is open to him.

 

Butch H.

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OGR Publishing, Inc., 1310 Eastside Centre Ct, Ste 6, Mountain Home, AR 72653
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