Walthers selling Exactrail with a mark up....

[CBQ Fan]

So Walthers is now selling Exactrail but they are selling it with a markup.  So retailers who order direct from them can sell them much cheaper than Walthers can.  This is absurd in my opinion.

[Denver Road Doug]

Just to be clear...are you commenting about Walthers or Exactrail?

[CBQ Fan]

Just to be clear...are you commenting about Walthers or Exactrail?

I just find the whole thing wierd!  But I guess that is what you get when you are a distributer and a manufacturer.  I guess it is more a comment on Walthers cause if that is what they are willing to pay Exactrail than more power to Erail. The one thing I am not sure if this added mark up is on all orders or just current stock.  Hobby shops can sell at a normal discount on all pre orders but if the minimum is not met and you go to Walthers you get a signigicant mark up.  At least that is how I understand it  I also figured someone out here might have more information that would elighten me on the topic.  I have been given the impression that Walthers may be higher priced than MSRP but I can't get a clear answer.

[asarge]

Mark up off of what Brian. Just looking on Walthers site and comparing to prices on Exactrails site. The N scale cars are the same price on each site.

[unittrain]

It looks like Walthers may be having an effect on EXR! spreading their HO bias!

[Blazeman]

Some of the store owners here may be able to clarify, but I've learned manufacturers are offering pretty good discounts to distributors and stores if the bill is paid up front or in a very short period.

[Brakie]

Some of the store owners here may be able to clarify, but I've learned manufacturers are offering pretty good discounts to distributors and stores if the bill is paid up front or in a very short period.

That's nothing new..Distributors and manufacturers prefer cash on delivery and has always given better cash discount..Same applies to case lot orders.

Years ago when I worked part time in a hobby shop my boss would order by the case lots and pay COD even though he had a five star credit rating..Everything was sold at 15% discount and he still made money.

If something didn't sell fast enough he would sell at cost to his list of train show dealers.

His philosophy was to keep a fast turnover by any means available..I bought several cars and locomotives at costs while working there.

[MichaelWinicki]

I'm still puzzled about this tread and what it actually means.

[Mark5]

I too am puzzled by this thread. I don't see Walthers marking anything up.

Exact Rail price $24.95
http://www.exactrail.com/ps-2cd-4000-covered-hopper-sou

Walthers price $24.95
http://www.walthers.com/exec/productinfo/253-EN506111

Not sure how we should know what they are charging hobby shops ...

 :?Mark

[Denver Road Doug]

Well, from reading some of the Freight Car lists, Exactrail sells out many runs in hours, and if you aren't sitting on the trigger you will probably miss out.   This includes hobby shops apparently.  I'm guessing they all order from the same system but not sure about pricing.  So...I don't really know the issues, but I know it gets pretty animated and hostile-like.  I don't think the phenomenon exists--or is as bad, anyway--with their n-scale line.   

Maybe the dealers pressured Walthers to just buy out EXR when the time comes?  (to keep e-Bay sharks...ahem...at bay?)   This is of course all speculation.   

[CBQ Fan]

I was told this is an upcoming change in policy.  Maybe it is just a ploy to get more pre orders, or maybe Walthers is selling off future excess inventory that if a hobby shop orders they won't get normal discounting.  I am hoping someone will clarify for us.  Sorry for causing more confusion.

[asarge]

Well, on the website and on Walthers Express that we dealers order off of the MSRP is the same. The dealer discount is short though so I doubt many dealers are gonna drop ordering direct from EXR and move to Walthers.

I seriously doubt they will start selling at higher than MSRP. That just doesn't make sense.

[SkipGear]

I was told this is an upcoming change in policy.  Maybe it is just a ploy to get more pre orders, or maybe Walthers is selling off future excess inventory that if a hobby shop orders they won't get normal discounting.  I am hoping someone will clarify for us.  Sorry for causing more confusion.

It's no different than their dealer pricing on Micro-Trains, Red Caboose and other manufacturers that also sell direct to dealer. There are many lines they carry that are there mainly for retail customers, not specifically for dealers. It apears that Exactrail is another one of those, not  a big deal. At least there is another outlet for them if you get desprate for a car, they may have it.