Hari-kiri or Seppuku?

[3rdrail]

It would appear one of the Oriental manufacturers desires to commit suicide, according to George Canham of Wig-Wag. I have no reason to doubt his information.

We have been advised that M.A.P. (Minimum Advertised Pricing) is coming to N-Scale.  One of the Oriental companies is upset by what they percieve to be a degradation in the value of their product by it being discounted by dealers.  They will begin forcing dealers to post false advertised price structures.  They will force distributors to enforce this upon the dealers by withholding product from the dealer if they advertise a lower price than that allowed.  Dealers can sell at any price they want but can't publicly advertise a price below the established M.A.P.  We also understand that they have been trying for several years to find some way to provide some sort of support to local shops that don't want to work and compete in the marketplace.

Is this the same crap PCM/BLI has tried?? If this is Kato, they'll lose a helluva lot of sales doing this.

[Ed Kapuscinski]

Oh yeah, I'd bet a few dollars this is Kato up to this crap. They've ALWAYS been up in people's business with regards to pricing.

In reality, all it's going to do is cause a bunch of headaches for dealers, but I bet real prices aren't going to change at all, and people are just gonna think that Kato are a bunch of assholes.

Of all the manufacturers, Kato has ALWAYS seemed the most "corporate". And that's not a compliment.

[sirenwerks]

Like the GP38-2, I wish Atlas would just go ahead and produce the F3 and F7, the SD45 and the SD40 and dash 2 version, and put Kato to rest. (Yes, I know I'm missing a few models in Kato's line, but those are the ones important to me. And yes, I know IM makes a line of Fs, but IMHO their high ride look doesn't suit my want for a prototype F).

What is the diff between hari-kiri and seppuku anyway? Isn't the latter the former, just ordered by your master? And Kato certainly doesn't think the consumer is their master. Not even their equal it seems.

[lock4244]

Weak...

[Kisatchie]

What is the diff between hari-kiri and seppuku anyway? Isn't the latter the former, just ordered by your master?...

Same thing:

http://www.bartleby.com/61/26/S0272600.html

[TiVoPrince]

So
the same pricing games like add to your cart to see the 'too low to advertise price' comes to model railroading.  Already a fact of life for Amazon, Circuit City and NewEgg...

[SquirrelHollow]

So
the same pricing games like add to your cart to see the 'too low to advertise price' comes to model railroading.  Already a fact of life for Amazon, Circuit City and NewEgg...

Thank google for that.  Advertisements on google, even when created by a user-defined search; added yet another dimension to this idiotic business practice.

If it is Kato, it makes even less sense than other companies.  Kato doesn't even sell direct!  Too many dealer complaints?  Too many cry babies?

I'd like to see how dealers feel about this.

[wcfn100]

If nothing else, maybe there will be a couple hobby shops that get some extra sales and won't have to close their doors this year.


Looks like some E-Bay sellers will have to start using the "Best Offer" instead of "Buy it Now" as well.


Jason

[GonzoCRFan]

Looks like some E-Bay sellers will have to start using the "Best Offer" instead of "Buy it Now" as well.

I would think that Kato would have a hard time tracking down and enforcing this policy on dedicated Ebay sellers, as opposed to actual storefronts.

I guess they don't have the concepts of supply & demand and allowing the market to set the actual fair price over in Japan. It just seems to me as time goes on, Kato is making dumber and dumber business decisions in the American market. First they start with the whole "when we announce something, the container is already on the ship" crap, and now they're trying to make life more problematic for the dealers who are PROVIDING their profits by SELLING their products? Seriously, is Kato trying to throw the game?

[RS-27]

If you haven't been there:
www.sketchup.com

A Google program that will shake your modeling world.

Bob in IDaho

[nscalesteve]

get over it Schnitzki, we all know you hate Kato, so what... !

dealer can still sell to absolute lowest margins if they like but guys like the complaining one in 3rd rails post have to stop with their obvious shilling, that's all...

[nscalesteve]

If this is Kato, they'll lose a helluva lot of sales doing this.

and why ? if you like to buy very high quality N scale model trains you have to buy Kato. if you are into modern diesel stuff you have to buy Kato (except the C40-8(W) from Atlas). if you are into good quality steam you have to buy Kato. why would you stop buying Kato just because they try to get rid off all the shilling and price dumping ?

[wm3798]

Maybe dealers wouldn't have to deep discount if Kato would provide more than two road names...  Spreading the love around would make for more demand, ipso facto supporting higher price points.

I think they've saturated the western road market, causing a surplus of inventory, hence depressing prices.

And Steve, you're right on some of your points, but I have yet to experience where Atlas is soooo inferior to Kato.  My fleet is made up of 80% Atlas, with the other 20% divided equally among Life Like, Intermountain and Kato.  I have a couple of maintenance issues on the Lifelikes (grinding flanges down, etc) and I've had one Atlas mechanism fail in 10 years.  This was due more to heavy use than a mechanical or design problem.

In terms of shell detail and a high degree of prototype fidelity, you can't beat Atlas.  Nor in terms of variety.

If they try to force a higher price, they're going to see a lower net return.  The same thing happens when the idiots in government raise taxes thinking they'll get more revenue.

Lee

[lock4244]

And Steve, you're right on some of your points, but I have yet to experience where Atlas is soooo inferior to Kato.

WM never owned an SD50 or SD60, so you've likely never had the pleasure. They are not terrible, but not great either. Kato SD's run circles around them. These are the reason I fear an Atlas SD40-2... though one does get sick of seemingly endless BNSF releases from Kato.

[3rdrail]

For the record, it's no skin off my nose. The last time I bought a Kato locomotive was when the Mikados first came out and I got one for less than $100. from BLW.

Most people are somewhat subject to price stimuli, and a reduced price will clear inventory. Unsaleable inventory greatly increases opportunity cost and this will cause friction with the dealers, not all of which have "shopping carts".

But, if Kato has started a trend... boo, hiss!