Regarding pricing, Williams by Bachmann gives dealers a lot more margin to work with than Lionel and MTH on both locomotives and freight cars.
As many are aware, it is illegal for a train manufacturer to set the retail price. That’s why the list price is called a manufacturer’s suggested retail price, or MRSP. It’s a baseline number from which the net price is determined, not a firm price.
The dealer discount can vary greatly, even between product lines from one manufacturer. For instance, MTH’s RailKing line of freight cars has a larger discount than the Premier line.
Bachmann offers a pretty large discount on locomotives. The new F59PHI lists for $529.99. Trainworld is selling it for $329.99. So the discount to Trainworld must be even deeper, and it’s possible Trainworld gets a better price for buying in volume.
Dealers are free to sell that model for whatever price they choose — $200, $300, $530 or $1,000 — but the market determines what the typical street value will be.
Discounts use to be larger across the board for model train products. The margins have shrunk over time. I am not at liberty to specify what the discounts to dealers are today, because I work at a hobby shop part time and that figure isn’t something I am authorized to share. But I can tell you that the days of 45 to 50 percent discounts are long gone for local hobby shops as it pertains to trains, based on my earlier exposure to the numbers at another hobby shop where I worked a quarter century ago.
Bachmann comes closest to offering deep discounts, though some would say it’s on artificial discount given how much the MRSP has ballooned in comparison to other manufacturers’ products.