BLI Doing MAP Pricing? Ahahahaha You've got to be kidding me!

[Denver Road Doug]

MAP pricing is quite common in the computer industry. Kato hasn't had a lot of people following their lead. Is BLI selling off their overstock through FTD that much different than Walther's overstock sales, and Life-like's old practice of deeply discounting their locomotives after a certain time? Not fun for dealers/distributors, but what is the supplier supposed to do with stock that doesn't sell?

I think the key phrase there is after a certain time.  BLI went into dump mode in a HURRY.  I think the French put up more of a fight than that.   "Halt! Or we'll drop our weapons!!!"

[SkipGear]

I think they are too comfortable to having their HO stuff sell out in the first week or two. Of 14 Paragon 2 items on the HO pages at FDT, only 3 show in stock and available and the PRR I-1 just came out. They have no Blueline product available and one of the Hybrids. When the N doesn't do the same, they panic. The HO stuff rarely makes it to the Firesale, although more and more show up recently.

[sizemore]

Well, at least in the case of Walther's it IS much different.  Walther's still maintains profit margin for dealers when they put an item on sale.

\

DING DING DING. When the price goes down, Walthers will discount and sell to the LHS/WHS who in turn sells it for a sale price as well. Life Like did that as well, remember all those FA's you could get for $40 bucks a pop?

The S.

[sizemore]

MAP pricing is quite common in the computer industry. Kato hasn't had a lot of people following their lead. Is BLI selling off their overstock through FTD that much different than Walther's overstock sales, and Life-like's old practice of deeply discounting their locomotives after a certain time? Not fun for dealers/distributors, but what is the supplier supposed to do with stock that doesn't sell?

Frank

The difference I see (and I could be wrong) between Kato and BLI is that Kato doesnt have a "discount" storefront that directly competes with an LHS/WHS. Their shop is full retail, and they even link to promote purchase at other shops. What I did hear through the grapevine (the validity of that is uncertain) was MAP pricing was introduced because of the large discounts the LHS/WHS were cutting on their products.

The S.

[Bob Bufkin]

I've got mixed feelings about BLI.  I've got some of there E and PA units and about 1/3 never worked worth a crap without tinkering to get them running.  I do think they are the best looking E's produced (I know some of you have doubts about this but that's my opinion).  When this was first posted I actually got a catalog in the mail from them (full color with lots of info) which kind of surprised me.  They have to be making some money to print and distribute the catalog.  MAP pricing doesn't bother me much as I know that most equipment will eventually be sold as a cheaper price somewhere down the line.  Unless it's something I just have to have right now and I can wait for the price to drop.  

[asarge]

Yes, BLI has had an MAP plan in placre for over two years. When they actually release product. I didn't think it apoplied to Factory Direct but lately I've noticed their prices on new product in line. Different on the reconditioned stuff they had been selling.

We dealers are shorted on most "Paragon" line discounts of which the Precision Craft N scale has been part of, Blue Line is more like the standard pricing we get. Discounting 20% still leaves a good margin for the dealers.

As far as the dealers are concerned. BLI/PCT has a long ways to go to make up for past sins. But they do seem to be trying to do a better job. The big issue is dealers.....and distributors don't want to place large orders unless they have them sold. Those are low magin-high inventory product to just have laying around waiting for someone. Plus, they do ahve a higherr than normal rate of defective product, mostly in the decoder/souns systems.