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When Lionel's Big Boy was announced as the 2014 Vision Line "featured product", it was interesting to watch the strategies as different dealers clamored for consumer pre-orders.  Some actively sought out orders here on the forum, while others marketed in more subtle, traditional ways.  Interestingly though, most dealers seemed to home in on the same price-point, give or take a few dollars.

 

Now that the Lionel 2015 Signature Catalog has been unveiled, we're starting to see different dealers announce their pre-order pricing lists.  What I find interesting is how DIFFERENT the price-points seem to be landing.  Much more of a range than I would have expected.  And Lionel's biggest dealer has yet to publish his pricing yet.  While it's not unusual to see the Mom-and-Pop LHS's have higher price-points than the large mail-order houses, I can't recall seeing the range we're seeing right now even among just the large national dealers.

 

We know the MSRP's are absolutely meaningless.  But it should be VERY interesting to see how all the dust settles -- especially for those products like the ES44's that have been around for a couple of catalogs now with no consistent street-price trend.  One year priced at $X... then the next year noticeably lower than $X... and now this year significantly higher than $X by most early indications. 

 

Are you waiting until all the large national dealers weigh in with their price lists before placing your pre-orders?  And are you as surprised as I am at the variation in some of the price-points announced thus far -- especially for the exact same BTO product? 

 

David

 

 

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>>>Are you waiting until all the large national dealers weigh in with their price lists before placing your pre-orders?  <<

 

Pretty easy to figure out. With the possible exception of a Legacy full featured Blue Goose, I have zero interest in buying streamlined steam.  Across the board price increases seem to be the only real eye opener in it, so for me this catalog is one big goose egg.

Joe

Last edited by JC642
Originally Posted by Rocky Mountaineer:

. . . . 

 

Now that the Lionel 2015 Signature Catalog has been unveiled, we're starting to see different dealers announce their pre-order pricing lists.  What I find interesting is how DIFFERENT the price-points seem to be landing.   . . . .

 

David

 

 

Very interesting observation, and I agree: it is what I have seen, too.

 

I think retailers are struggling somewhat with Lionel's new pricing policy.  This is the second year of what seems to be a shift to a more "Bachmann like" pricing policy - set the list high and wholesale them with a big margin so most vendors can discount them heavily.

 

As I see it, retailers are learning from their first year of experience with Lionel's pricing like this.  Many - most, competing on price with the VlBB that first go-round.  Many probably realized they made little money selling on low price with free shipping and that it is just not worth it and have decided to change their tactics.  Some have not.  It is going to be interesting.  

 

Buyers like me are learning, too, and have to adjust.  I used to expect only 5-7% off Lionel, now its more like 15% or more in some cases.  

 

So I continue with what has been my newly-modified buying procedure since my local LHS went out of business; I have a four step process:

- I always check the big-river site first: if they have it for a good price I buy it there:- easy convenient fast.

- If it is commodity or standard (styrene supplies, small rolling stock, stuff recently released under $500) and big river doesn't have it (which is common with O-gauge) I check M. B. Klein next: been buying from them for over 25 years.  Good prices and fastest shipping I know of (if I order by 10AM and I often get it the next day by 6PM, even with just normal shipping).  

- If Klein doesn't have it, or its over $500, or pre-order, I call or e-mail Patricks trains.  Not always the lowest price, but I don't buy on lowest price as long as the price is reasonable.  So far it has been and the service is superb.

- If Patricks trains can't get it for me, I shop around, but usually I can't find it anywhere else, either.

 

All I can remember is the panic and frustration toward Ro for not having the VL BB BTO price up the instant the digital catalog went online. Folks scrambled to get a preorder in at another dealer.

 

Ro posted his prices a week or two after Lionel posted the online catalog, and came in lower than everyone else. He offered the BTO prices for a month or two after the items were announced

Last edited by RickO

Tactically, however, Lionel has put itself in a more advantageous position with its built to order (BTO) paradigm.  Larger dealers will certainly order some BTO products for which they do not have a customer order. But no one knows what dealers are going to do this, for what products, or what quantity.   So if someone is interested in any BTO items, this Lionel paradigm makes it a lot harder for someone unhappy with the aggressive pricing to play the wait-and-see game (in terms of not pre-ordering due to the pricing and then waiting to see what items will see drastically reduced prices toward 2016).  

 

Peter 

The dust settled for me a long time ago. So much drama has been posted on this Forum about the retail pricing in the new Signature Catalog that to me is totally unnecessary and meaningless. Lionel Management has been challenged about their pricing strategy which again is their business, not ours. We have the right to exercise our opinions by either buying or not buying.

 

Now for the dust matter you raise. I found out a long time ago that if you deal with a reliable dealer, you don't have to worry about the best or greatest pricing, they will take care of you. Example, when the Gold Edition Berkshire and matching passenger cars were first catalogued a year ago last October, there was NO PRICING in the catalog. I called my dealer and was their first customer to order this set. I knew they would take care of me and in fact, they did with excellent pricing.

 

My advice, relax David, hopefully the world will not come to an end with meaningless retail pricing.

Originally Posted by Passenger Train Collector:

...

 

My advice, relax David, hopefully the world will not come to an end with meaningless retail pricing.

Oh I'm quite relaxed, PTC.  Just making market observations as they happen.

 

There's very little for me in Lionel's latest Signature catalog -- especially compared to my buying habits of years ago.  Actually more interested in goodies in the Holiday Memories catalog.  But it's still nonetheless interesting to watch the various machinations play out.   Even downright entertaining at times.  

 

And for the record, we're probably using the same "reliable dealer" in what's seemingly become America's snow belt this Winter season, so I have no worries on either the pricing nor product availability fronts for the select items of interest.  Life is good.

 

As for "challenging" Lionel's management regarding the recent trends to inflate MSRP's over the last couple of catalogs... I think they're more than up to the task of handling it well and receiving the consumer message.  And I'm sure it comes as no surprise to them either.  After all, they're big boys who know the game well, and that's why they get paid the big bucks to help the medicine go down.  

 

David

 

 

Originally Posted by jojofry:

All i know is i am not paying 565 Trainworlds preorder on es44acs.. You wont be selling to many at that price...

That's why I was so surprised at the range of prices for pre-order.

 

It's one thing if a dealer holds out for a higher price after products are shipped.  We've seen that in years past -- the philosophy being when the lower-priced sources sell out, the fella who wants something will have to pay whoever has supply remaining at their asking price.  But pre-order? 

 

David

Originally Posted by RickO:

All I can remember is the panic and frustration toward Ro for not having the VL BB BTO price up the instant the digital catalog went online. Folks scrambled to get a preorder in at another dealer.

 

Ro posted his prices a week or two after Lionel posted the online catalog, and came in lower than everyone else. He offered the BTO prices for a month or two after the items were announced

did you get an email with a special very early price on the big boy?

Maybe. On the other hand, the customer who is on the fence as to whether he wants to spend that kind of money still has the option to not order and take his chances whether the item later becomes available at a more reasonable price, either from a dealer or on the secondary market. I can tell you that Lionel's price increases have resulted in a large reduction in the amount of Lionel products that i buy, and I don't think I'm the only one. Right now I'm on the fence about the Milwaukee Road Heavy Mikado. I'm seeing pre-order prices $200 more than the in-stock prices for the same item (with different roadnames) from the last catalog. MSRP is the same but the pre-order price is way up. For a 200 buck difference I might just get one with a roadname I don't want and repaint. Lionel is throwing the dice with their BTO pricing strategy. 
 
Originally Posted by PJB:

Tactically, however, Lionel has put itself in a more advantageous position with its built to order (BTO) paradigm.  Larger dealers will certainly order some BTO products for which they do not have a customer order. But no one knows what dealers are going to do this, for what products, or what quantity.   So if someone is interested in any BTO items, this Lionel paradigm makes it a lot harder for someone unhappy with the aggressive pricing to play the wait-and-see game (in terms of not pre-ordering due to the pricing and then waiting to see what items will see drastically reduced prices toward 2016).  

 

Peter 

 

"It's unfortunate, but this disappointing experience was really unsettling and has me thinking it might be a good idea to locate another big dealer that offers good discounts and excellent customer care. Any suggestions"

 

Charlie's son Chuck is the one to speak to. I have dealt with Charles Ro for many, many years and they are an outstanding dealer in every respect. The last thing I would do is to look for another dealer if I were you.

"Charlie's son Chuck is the one to speak to. I have dealt with Charles Ro for many, many years and they are an outstanding dealer in every respect. The last thing I would do is to look for another dealer if I were you."

       


I will speak to Charlie. Tried to at the Springfield show but timing wasn't right. In any event, don't know why you advise not to even consider other dealers. I don't think it hurts to have options.

NB. Tried to edit initial post that basically said (a) I have bought all my new products from Ro for entire time we've been in hobby; (b) great customer care from Charlie (jr) but ran into a really bad situation with Charles (sr) re: material defects with VLBB (that Lionel resolved); and (c) that experience left me disappointed with my favorite dealer and I want to explore options/looking for recommendations on other large dealers that offer top customer care and good discounts.  Somehow I ended up deleting that post.
Last edited by PJB
Originally Posted by Southwest Hiawatha:
... I can tell you that Lionel's price increases have resulted in a large reduction in the amount of Lionel products that i buy, and I don't think I'm the only one. ...

 

No... Without a doubt, you are not alone in your decision to scale back purchases.  With the kind of price increases we're seeing in 2015, you'd think folks have been starving for product for years now... when in fact most folks already have more toy trains than they'll ever be able to run or display... and there are TONS of great deals on the secondary market -- now more than ever.  

 

Combine all that with the fact that this audience isn't exactly expanding by leaps and bounds, and it appears that the timing couldn't be any worse for these kinds of price increases.   

 

David

Part of my job is to consult around inventory management and purchasing/pricing strategies for manufacturing and distribution in a variety of industries.  

 

I've been casually watching the O gauge market since I got back into the hobby five years ago and (for what it's worth) I often find the logic hard to follow.  It's no wonder pricing sometimes leaves folks frustrated or confused.  A lot is in flux--new pricing strategies are being floated AND many new products are being unveiled.  Hard for the consumer to process all that simultaneously.

 

I'm inclined to agree with the guidance others have offered... find a place you like to buy from and place your order.  Don't worry about trying to shop around for that extra 5% off, as it won't be worth your time or energy.

Originally Posted by Ed dt&i:
Originally Posted by J Daddy:  Can you share the name of your local LHS?

Nope- I will march down to my local LHS and place my order there. With 20-30 percent off the catalog price, an additional 10% repeat customer savings and 3 month layaway plan. I cannot go wrong.

 

Sure will Ed-

Email me.

 

Originally Posted by J Daddy:  I checked profile didn't see email address.  Sorry.  Help?  Is it the photobucket address/
Originally Posted by Ed dt&i:
Originally Posted by J Daddy:  Can you share the name of your local LHS?

Nope- I will march down to my local LHS and place my order there. With 20-30 percent off the catalog price, an additional 10% repeat customer savings and 3 month layaway plan. I cannot go wrong.

 

Sure will Ed-

Email me.

 

 

This is the Kool Aid Lionel wants you to drink.  Getting closed out of an item is VERY rare.  And even if you do, they'll eventually show up on the Secondary Market.  Personally, I find the BTO concept utter lunacy.
 
Someone like 3rd Rail has a strong enough reputation to be able to "get away" with a BTO like concept.  I think Lionel has a long way to go in this department....for a number of reasons.
 
I will gladly buy Lionel's product...and hold a lot of them in high regard....but I insist on seeing and hearing it FIRST.  I will BTO absolutely nothing from Lionel.  I will part with my money only after they have demonstrated how good their product is to me.  They should bear the financial risk of such transactions, not me.
 
Originally Posted by PJB:

Tactically, however, Lionel has put itself in a more advantageous position with its built to order (BTO) paradigm.  Larger dealers will certainly order some BTO products for which they do not have a customer order. But no one knows what dealers are going to do this, for what products, or what quantity.   So if someone is interested in any BTO items, this Lionel paradigm makes it a lot harder for someone unhappy with the aggressive pricing to play the wait-and-see game (in terms of not pre-ordering due to the pricing and then waiting to see what items will see drastically reduced prices toward 2016).  

 

Peter 

 

Just curious.  In reading a few business articles, it appears that the Chinese and other places in the Far East may be getting to the point of having moved past the point of being low in costs.  They may going the way of Japan.  Is this affecting the costs for Lionel and MTH where they have to raise prices like they have?

 

Where is the next low cost area?  Can India do it?  I think the Middle East and Africa are still unstable enough that it would be too risky to move into these areas?  Maybe some of the manufacturing can come back to the US if it can be highly automated to not require many people in the factory.

 

I was interested in the NS ES44 but the price is too high right now.  Even if the price was lower, I will wait until they hit the market and see what deals can be found.  This is what I did with the CSX ES44.

Just received the hard copies via LCCA yesterday.  Much easier to peruse them in that format.  Based on previous catalogs, these seem to be, at least to me, as ' which way is the wind blowing?' catalogs.  There is very little new, so we 'old timers' that have a ton of this stuff already won't be spending too much.  What I find interesting is the number of LionChief RTR sets versus only two RTR transformer sets versus no LionChief Plus sets. You would think that the six 'Service Station' sets would come with a LionChief Plus engine? I think after all the smoke settles, the bean counters will tally up what sold and what did not sell.  Maybe less RTR 'G' sets, maybe more.  Maybe RTR transformer sets go the way of the dodo replaced by some higher end LionChiefPlus sets.  Don't know what you can come up with that is 'new' regarding accessories other than more plug and play.  I for one would consider buying a  LionChiefPlus set if it had some cars or accessories unique to the set.

Originally Posted by SWANKO:

Just received the hard copies via LCCA yesterday.  Much easier to peruse them in that format.  Based on previous catalogs, these seem to be, at least to me, as ' which way is the wind blowing?' catalogs.  There is very little new, so we 'old timers' that have a ton of this stuff already won't be spending too much.  What I find interesting is the number of LionChief RTR sets versus only two RTR transformer sets versus no LionChief Plus sets.  I think after all the smoke settles, the bean counters will tally up what sold and what did not sell.  Maybe less RTR 'G' sets, maybe more.  Maybe RTR transformer sets go the way of the dodo replaced by some higher end LionChiefPlus sets.  Don't know what you can come up with that is 'new' regarding accessories other than more plug and play.  I for one would consider buying a  LionChiefPlus set if it had some cars or accessories unique to the set.

Maybe I'm missing something big here or the catalog is unclear about Lionchief plus features but what I find interesting is the price discrepancy between very similar engines.
The GP-7's are priced $110 less then the RS-3 but the GP-20's are $40 less then that same engine.    
Last edited by JC642

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