Bachmann N GG-1s w/sound on sale at Trainworld

[peteski]

As widely predicted by modelers when Bachmann brought this models out with the mind-boggling $399.00 MSRP, they are now available for $149.99 (over 50% off the MSRP).  Yes, $150!

See https://email-trainworld.com/64GN-FMWZ-DE87732C536B3FB24LO5BAC502273B53AD2A7A/cr.aspx

[Chris333]

When the Bachmann On30 Heisler came out the MSRP was ~$415. Trainworld had them forever at $149. And right now you can barely find one for sale, they are all gone.

[peteski]

When the Bachmann On30 Heisler came out the MSRP was ~$415. Trainworld had them forever at $149. And right now you can barely find one for sale, they are all gone.

Once these models are realistically priced I'm not surprised they sell out fast.
I wonder about who (if anybody) is loosing money at such highly discounted price.  What was the "real" wholesale price Bachmann charged distributors or hobby shops for models with a $400 MSRP.

[Rossford Yard]

Years ago, a friend who was in the biz showed me some of the discounts to wholesalers and retailers sheets.  While most of the big boys sold to wholesalers at about 45-50% of retail, for whatever reason, BMan, LifeLike, etc. sold at 30% or so to wholesalers.  That allowed for a drastic markdown sale, if required, and LHS could offer Bachmann and Lifelike at 50% off, and still cover costs and make a few $$. 

It always seemed to me to build in the certainty of the eventual blowout sales, because who was going to buy an (at that time) inferior locomotive for more money than a Kato or Atlas?  And, I think we all knew to wait until the big sale came.

He also recalled that those mfgs actually started out at higher wholesale prices, but wholesalers who bought those vendors nice dinners, etc., and especially drinks, often got to see the secondary sheets with the "real deal" prices.  Those mfgs had the "green sheet" (normal prices), the yellow sheet (discount prices) after a few drinks, and a red sheet, the absolute lowest prices for those who plied them the most.

Actually, not much different than most industries, I guess.

[peteski]

Years ago, a friend who was in the biz showed me some of the discounts to wholesalers and retailers sheets.  While most of the big boys sold to wholesalers at about 45-50% of retail, for whatever reason, BMan, LifeLike, etc. sold at 30% or so to wholesalers.  That allowed for a drastic markdown sale, if required, and LHS could offer Bachmann and Lifelike at 50% off, and still cover costs and make a few $$. 

You stated that most manufacturers sold to whoesalers at 45-50% discount and Bachman at *ONLY* 30% discount off of MSRP?  That sounds backwards to me.  If that was the case, the wholesalers and retailers would have less leeway for offering fire-sale prices for Bachmann than for other brands.

[wcfn100]

You stated that most manufacturers sold to whoesalers at 45-50% discount and Bachman at *ONLY* 30% discount off MSRP? 

  While most of the big boys sold to wholesalers at about 45-50% of retail , for whatever reason, BMan, LifeLike, etc. sold at 30% or so to wholesalers.

Of, not off.


Jason

[Ed Kapuscinski]

Welcome to the world of retail, and why so many manufacturers want to go direct to consumer.

[johnb]

the K4's are heavily discounted too...
https://www.trainworld.com/model-train-specials/n-scale/bachmann-52851-prr-post-war-w-modern-pilot-k4-s-pacific-4-6-2-1361-w-dcc-sound-bachmann-52851.html

[wcfn100]

You stated that most manufacturers sold to whoesalers at 45-50% discount and Bachman at *ONLY* 30% discount off of MSRP?  That sounds backwards to me.  If that was the case, the wholesalers and retailers would have less leeway for offering fire-sale prices for Bachmann than for other brands.

30% of MSRP is $30 for a $100 item.

Jason

[Point353]

He also recalled that those mfgs actually started out at higher wholesale prices, but wholesalers who bought those vendors nice dinners, etc., and especially drinks, often got to see the secondary sheets with the "real deal" prices.  Those mfgs had the "green sheet" (normal prices), the yellow sheet (discount prices) after a few drinks, and a red sheet, the absolute lowest prices for those who plied them the most.

Actually, not much different than most industries, I guess.

In other industries, from what I've seen, it's the suppliers that wine and dine the customers, not vice-versa.

[peteski]

30% of MSRP is $30 for a $100 item.

Jason

I get it.

Maybe I totally missed the point.  I thought Rossford Yard was explaining how retailers are able to offer such a deep discount on Bachmann (but not on other brands), yet he cited that wholesale price of Bachmann was higher (only 30% of MSRP), while the other brands' wholesale prices were up to 45-50% of MSRP.  If that is the case, the retailers should be able to offer deeper discounts on the other brands than Bachmann. Yet, it is Bachmann that gets deeply discounted.

[davefoxx]

I get it.

Maybe I totally missed the point.  I thought Rossford Yard was explaining how retailers are able to offer such a deep discount on Bachmann (but not on other brands), yet he cited that wholesale price of Bachmann was higher (only 30% of MSRP), while the other brands' wholesale prices were up to 45-50% of MSRP.  If that is the case, the retailers should be able to offer deeper discounts on the other brands than Bachmann. Yet, it is Bachmann that gets deeply discounted.

Maybe I'm being dense, but, as I understood it, there's more profit in the Bachmann products when purchased at 30% of MSRP than the others' products purchased at 45-50% MSRP.  So, there's more profit margin to discount the Bachmann items.

Bachmann: $100.00 MSRP x 30% = $30.00 cost (up to $70.00 can be discounted before only breaking even)
Others: $100.00 MSRP x 50% = $50.00 cost (up to $50.00 can be discounted before only breaking even)

DFF

[daniel_leavitt2000]

Has anyone compared these to the Kato and Arnold side-by-side? I am really interested in how each tackled such a unique model.

[dem34]

Has anyone compared these to the Kato and Arnold side-by-side? I am really interested in how each tackled such a unique model.

~Still waking up sorry.~ 

[peteski]

Maybe I'm being dense, but, as I understood it, there's more profit in the Bachmann products when purchased at 30% of MSRP than the others' products purchased at 45-50% MSRP.  So, there's more profit margin to discount the Bachmann items.

Bachmann: $100.00 MSRP x 30% = $30.00 cost (up to $70.00 can be discounted before only breaking even)
Others: $100.00 MSRP x 50% = $50.00 cost (up to $50.00 can be discounted before only breaking even)

DFF

Oh, is that how that works?  I thought the percentage was taken of the MSRP price, not sold at the percentage price.
For others it was $100 - (100 x 50%) = $50
For Bachmann it was $100 - (100 x 30%) = $70

If it is done the way they way you presented it to me, that makes sense.  The "light-bulb" went on. Thanks! I guess my brain works differently than all of youz. Not sure I can even blame it on English being my 2nd language.