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Originally Posted by jd-train:

Never heard in these times of a LHS wanting full payment up front on a pre-order.

 

Personally, I think its nuts to prepay a $1200 - $1500 locomotive.  Stuff happens, what happens if the dealer closes after getting your money and before the engine gets delivered?

 

For the LHS who is afraid of getting stuck with pre-ordered merchandise, it would seem to me to be a much better idea to charge a partial deposit, say 10 - 20%.  Seems to me, customers would be happier leaving a smaller deposit, and if the buyer backs out of the pre-order, the dealer could sell the engine at a discount.

 

Jim

My LHS is one that does, only for some people, especially if you are new to them or have re-ordered before and then cancelled the order. I would imagine there are other small train stores that do the same.

 

As for the train store closing before the item is delivered, yes, that could be a very big problem. That would definitely have to be a well thought out judgment call by the purchaser. I considered that myself when I had to pay for my first pre-order (which I no longer have to do). I was a more than a bit nervous about it as well. All has turned out very well and I continue to pre-order from the same store.

 

However, I do think you are correct about the deposit instead of the full payment. I think some of the forum sponsors also require this now. Possibly just on the larger ticket items as it seems like some were requiring a deposit on the VL BB's? As you say a 20% deposit would sure give them some wiggle room at time of sale to help move the item if they got stuck with it.

 

I really do think at least a deposit will become more common with the manufacturers going to BTO and wanting pre-orders before even making an item. Maybe not the full pre-pay, but I definitely think the deposits will become more of a standard practice. I can't blame the dealers, I actually would agree with the practice. Some of these items are really getting up there in price and getting stuck with a few might be difficult for even a larger dealer. Probably something we need to start getting used to. 

I pre-order all the time - well, I still do it, but "all the time" a bit overstates my purchasing nowadays, but I have done it many, many times over the last 20 years. Only two orders got missed, and one of them I was happy about. Unless you just want to wait on the secondary market - and I do that mostly - I see no reason NOT to pre-order from reputable dealers.

 

If it is a truly important item to me, I would rather make sure, so far as that is possible,

that I get it. So they may - or may NOT - show up in 5 years $200 cheaper - I don't care.

 

====

 

BTO is what I would do if I were a large seller of expensive items. Makes people put their money where their mouths are. It's not a new idea.

 

Bad side: it tends to stifle the risky, I'd-like-to-offer-this products that surprise you. 

Last edited by D500

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