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This is a cut and paste from a posting on the Tinplate Trains Forum by Wurlitzer.  As it affects MTH S Scale, I thought it important to do so.

 

It appears your favorite LHS should still be able to get MTH S.  Hopefully, they won't hog-tie the stores with minimum orders.

 

Rusty:

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News from MTH...Good or bad news for us local hobby shops...it'll be interesting.

 


 

April 30, 2013 - As retail outlets for hobby products - including model trains - continue to decline in volume, M.T.H. Electric Trains will begin to incorporate direct marketing tactics for its tinplate and S Gauge lineups in 2013. This decision follows on the heels of the direct marketing initiative created for M.T.H.'s RailKing One Gauge lineup in 2011.

Unlike the earlier One Gauge initiative, the tinplate and S Gauge lineups will feature across-the-board MAP (minimum advertised price) pricing to engage and encourage retailers to continue accepting consumer orders and supporting these smaller but still vibrant product lines.

Beginning with the M.T.H. 2013 Lionel Corporation Tinplate catalog and the M.T.H. 2013 S Gauge catalog, M.T.H. will begin accepting pre-orders from individual consumers for items featured in either catalog. Preorder items will be promoted above the MAP price ensuring that retailers who are also promoting products featured in either catalog will be able to competitively meet or beat M.T.H.'s posted website price point.

Later this Spring, M.T.H. will publish our 2013/2014 RailKing One Gauge product line. Like the 2013 Lionel Corporation and M.T.H. S Gauge product lines, the new One Gauge product line will also feature MAP pricing and direct consumer ordering.

 

WHY THE NEED FOR A DIRECT MARKETING INITIATIVE?

With fully one third fewer hobby stores serving North America today than in the early 2000's, it is critical that M.T.H. remain capable of providing our customers with as many purchasing options as possible. With niche markets like tinplate, S Gauge and One Gauge, consumer options for seeing or purchasing products in these scales are fewer and fewer. There are simply not enough stores supporting these scales today to fully engage these market segments. Without direct marketing initiatives, the future of these markets could come under duress.


 

Believe it or not, this seems to be a spreading trend in the hobby supply industry.

 

I am sure I speak for all LHS owners hoping our valued customers continue to shop with their favorite dealer.  If for no other reason than for availability of under-produced product.

 
Original Post

This is just the first step. Eventually they will offer discounted prices direct to the consumers. Lionel already does this by having special sales like "Mother's day Sale" etc... The entire S lineup was available. I don't blame them. They are in the odd spot of wanting to support the dealer network, but needing to do what they need to do to remain in business with a decreasing amount of dealers.

 

One wonders what this hobby will look like in 10 years.

Post

OGR Publishing, Inc., 1310 Eastside Centre Ct, Ste 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

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