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NEWS AND UPDATES
06/20/21
HAPPY FATHERS DAY
Where's The Product That I Ordered
Some of you have been asking
about your back orders and advance reservations so I
decided to give an update as to the biggest offenders
for taking a long time getting the products you have
ordered to you. Covid aside, here is the list
manufacturers with long long wait times.
Con-Cor (we are no longer taking orders for this
manufacturer)
Atlas
Bowser
Intermountain Railway
Lionel
NJ International
Merten
Accurail
Peco is trying to
catch up and we do not have much on back order right now
however the UK has again extended the Covid shutdown
another 30 days.
Please be patient!
Price Increases Starting To Show Up
As I stated in recent News and Updates, model
railroading prices (along with everything else in the
world today) are going to go up. Case in point, Woodland
Scenics is having a price increase effective 7/1/21. Not
all items are changing, the attached list is just the
items going up in price - most are significant. If you
want to beat the price increase place an order now.
Woodland is not back ordering at the current price so
orders will be fill and kill. Price list is attached
showing both the old and new price as well as the
percentage increase.
Also on Thursday Atlas’ recent notice advising a
temporary shipping container surcharge on
Dealer/Distributor invoicing has been rescinded.
In light of recent Atlas supplier price increases caused
by rising raw material costs, labor, and exchange rates,
as well as the increase in shipping container costs, the
following pricing policy is being established for N, HO
and O track and accessories.
Atlas will increase All Scales Track & Accessory prices
an average of 10%, effective July 2021.
Atlas stated that they will be canceling all distributor
and dealer back orders on track and accessories and
giving only one opportunity to order at current prices
for in-stock products. Atlas reserves the right to
adjust or cancel order quantities based on availability.
All orders must be received by 12:00 noon on Friday,
July 2nd, no exceptions.
Atlas will begin shipping orders as soon as possible.
Once shipments are completed in July, any open track and
accessory orders will be cancelled and new
dealer/distributor orders will need to be placed and
confirmed by Atlas.
BRH has contacted our wholesalers about this Atlas
update and BRH is awaiting a response as to how the
track and accessory cancellations will be handeled. As
of this update Atlas rolling stock, locomotives and
vehicles are not affected to our knowledge.
We are getting price increase notices from many
suppliers, we'll due our best to keep you updated.
Milwaukee Warehouse Power Outage
It seems that over
night Thursday some bad storms rumbled through Milwaukee
that knocked out the power and internet at the warehouse
around 4am according to our sales rep there.
With date, the normal 6am order from BRH customer orders
from 6am Tuesday through 6am Friday could not be
transmitted.
BLI MAP Policy
Update
BRH had several customers email us regarding
the new BLI MAP policy.
Here is what they had to say:
I read your latest newsletter about the MAP and I
agree, BLI is being obstinate and doesn't seem to care.
The sad thing about this is that BLI gets the same
amount regardless of what you sell the product at.
Higher selling prices will simply mean reduced volume
and less money for BLI. That's basic econ 101. As for
wanting to maintain the image of high quality by high
prices, that doesn't work either as you mentioned in
your newsletter.
MAP pricing kills distributors / shops. I see it all the
time with landscaping equipment. Hold your ground and
drop em if need be. Keep up the good work!
Owners and enthusiasts like you, especially with your
great communication on shipping issues and what's going
on in the industry, are what keeps this hobby personal,
and out of the hands of Amazon type retailers.
Thanks to all for the kind comments
Upcoming
Order Deadlines
Preorders due this week - don't miss out!
June 23: Atlas Preorders
June 24: Broadway Limited Preorders
July 15: Broadway Limited Preorders
On Going BRH Sales
Click on the sale logo to access
06/13/21
MAP Pricing
Did you know that some manufacturers are requiring on
line retailers and advertisers to sell their products at
a Minimum Advertised Price or MAP.
BRH has been fighting against this policy as it costs
you, the model railroad products consumer, to pay more
for an item. BRH does not agree.
BRH wants you to get the lowest possible price we can
give you and still make a profit. So we push back at
every turn when this becomes and issue.
Case in point.
Two weeks ago BRH was left a very short voice mail from
Ken Silvestri of Broadway Limited Imports that BRH was
not complying with their new, as of March 2021, MAP
Policy which states "MAP will be set at 80% except for
Brass-Hybrid products at 85% of the suggested retail
price and will be in effect from the time of the
announcement through 90 days beyond the first ship date
of the product to retailers and consumers".
The false reasoning behind an MAP policy is that lower
than the set MAP pricing dilutes the brand. Not sure
where that comes from as the brands quality perception
comes from the actual quality of the products and that
companies customer service. A lower than MAP price point
or just the lowest price a business can sell an item for
has nothing to do with that.
BRH for example, can sell a lower price point
do to our very very low overhead and operating cost.
Thus, you the consumer get the lowest possible price.
The manufacturer still is sell the product at the
same cost to the dealers and wholesalers so they are
making the same money regardless of what price BRH sells
the products for.
Back in 2008 Ken and I had this exact same
conversation and that MAP policy would be an enforcement
nightmare. Back then there where many many more hobby
stores and online retailers. Today there are fewer and
fewer hobby stores which I guess makes MAP
enforcement easier now and unfortunately cost you, our
customers, more money.
This past Wednesday BRH contacted BLI and Ken
Silvestri as follows:
Ken,
MAP is not a benefit to all of us! It stops sales to
those of us with a lower operating cost that can afford
to sell any companies product at a lower price. What is
does is reduces sales and hurts the end consumer, our
mutual customers!
As we discussed back in 2007 when you and I discussed
this very topic.
After your call two weeks ago I am still finding product
listed by other online retailers being sold at less than
MAP! There is no level playing field. When will these
dealers be removed from receiving BLI products to the
benefit of all of us.
I predict that BRH will be selling less, if any BLI
products with the BLI policy which means, without sales,
we will drop BLI after 17 years!
Your thoughts for my weekly News and Updates for my
customers?
---------------------------------------------------------------
His response:
Frank,
Your opinion is wrong. Research it.
Ken
---------------------------------------------------------------
My response:
Ken,
Your opinion is wrong! I have researched it! You are not
backing up the reasoning for the BLI MAP policy.
The perception by the consumer, looking for the best
price, does not perceive the value of the product (MSRP)
as being a cheaply made or inferior product, as some
manufacturers seem to mistakenly believe, the consumer
just looking for the lowest rate.
BLI has a loyal customer base so that is not the issue.
Why would the end consumer want to pay more for the same
identical product if the lower price is available! I
know I would not.
Take Amazon for example, there price points are very low
on most products. And they break the supposed MAP policy
on Lionel products for example, all the time. I have
reported this to Lionel but nothing has changed. They
have Amazon as a high volume buyer while BRH can not
increase to that level of purchasing power. While the mom
and pop hobby shops can not compete as they are forced
to follow the MAP. It is easier and more sales related
effective to cut off the small volume mom and pop and
stay with high volume Amazon.
As of yesterday there are several on line retailers not
following the MAP. If have been checking semi daily
since your call.
Also, when you announce products the MAP policy is not
listed as you stated in your voice mail and the
wholesalers do not list the MAP prices or dates of the
MAP effective dates. BRH downloads our database from
each wholesaler directly and apply our standard
discounts to those prices. We have done this for 17
years.
Discounting as low as a retailer can go does not
misrepresent its true worth of that product. It
represents to the end consumer value. BLI makes the same
money regardless unless the consumer buys direct from
BLI at full non discounted prices.
With BRH and others pricing as low they can go does not
hurt authorized resellers (dealers) of the BLI product
and does not damage the manufacturer-retailer-consumer
relationship. The result is that the consumer will buy
less BLI product!
If you are worried about brand identity, just keep
creating a superior product and BLI will continue to
have sales no matter what the price point a dealer can
sale the BLI product at.
The bottom line is that you have to look at both sides.
Stating in your MAP policy web page "properly positioned
in all types of advertising in order to protect
innovation, quality, and brand value" means what?
Properly positioned? What does that mean?
The last BLI product announcement 6 New Announcements
from BLI! Including the World's Best UP FEF in DIE CAST
does not mention MAP Policy as you stated in your
voicemail.
Please respond with details so I can explain the price
increase to my / our customers.
---------------------------------------------------------------
As of this News And
Updates, I have not received a response back.
So, BLI has a great product but for now we will have
to raise the prices to the MAP level which will effect every BLI customer, no matter where they buy the product from,
and cost them more money. I love the their product line
and it has been a great seller and the recent
announcement then release quickly sells a good amount of
product with virtually no wait times like in many years
past. No one benefits from MAP policies!
Positive
Google Reviews
Last week I shared a very negative review that was
posted. Well two BRH customers have stepped up and gave
BRH 5 stars out of 5.
These reviews can be found in full on Google.com just search
for Blue Ridge Hobbies Reviews for the full reviews
Thanks to Ian Kinney and Allison Dendy.
Ian states: I've
ordered and pre-ordered several items from Blue Ridge
and the service has been spot on every time. Make sure
you read their policies page and you won't have any
trouble. Keep it up guys!
Allison states:
I've placed 14 orders through Blue Ridge
Hobbies over the past six months. Overall, I've been
very pleased with their service. When I am dissatisfied,
it's the result of the current business climate where
product is scarce and in high demand, not because of any
fault with Blue Ridge Hobbies. I find their prices
better than anyone else's on just about everything I've
ever checked. When I order from someone else, and I do,
frequently, it's only because someone else had product
in hand that BRH can't get when I want it.
I have one recommendation for customers considering
doing business with Blue Ridge Hobbies and that is that
people should pay attention.
Add your review of
BRH, good or bad to the Google review page!
Lionel Price Increase
From Lionel: Due to an
increase in material costs, some Power & Control items
will incur a price increase effective immediately.
Look for more and more manufacturers to raise prices!
On Going BRH Sales
Click on the sale logo to access
Upcoming
Order Deadlines
Preorders due this week - don't miss out!
June 15: Rapido Trains Preorders
June 16: AtlasO Preorders
June 17: Broadway Limited Preorders
Order deadlines approaching soon:
June 23: Atlas Preorders
June 24: Broadway Limited Preorders
July 15: Broadway Limited Preorders
Rapido Trains Makes Surprise HO Model Announcements
Hot on the heels of its announcements last month, Rapido
Trains has announced two new HO Scale model projects
which are available
now. Rapido has released a handful of additional road
numbers on its extremely popular GE B36-7. These units
are available only
with sound and DCC and come decorated for ATSF (merger
scheme), SP and CR (two schemes each). The surprise
freight car
announcement is the 53' Husky-Stack Well Car. This
popular intermodal car is available in six road numbers
per scheme plus a
single TTX breast cancer awareness car. Quantities of
all of these models are extremely limited run - order
now!
CLICK HERE TO ORDER THE GE B36-7
Big News for
N Scalers: Broadway Limited GE AC6000s Now Shipping
N Scale modelers love big diesels and new AC6000s fit
the bill. This model is based on the 6,000-horsepower
diesels introduced in
the 2000s. It features full Paragon3 sound and DCC for
realistic sound and motor control. The Paragon3 sound
system works with all
Broadway Limited Rolling Thunder(TM) advanced sound
systems. You will love these diesels, so get them
rolling on your
railroads now! MAP Pricing is now in effect.
CLICK HERE TO VIEW THE AC6000's
New Faller HO and N Arrivals Include a Variety of
Structures
Modelers love the detail and ease of assembly of
structure kits from Faller. New arrivals include many
great structures easily
adapted to North American layouts by simply changing the
signs, and in many cases sign changes aren't even
necessary. Kits
include great brick freight houses, train stations,
modern gas stations, ancient townhouses and more.
Check them out and order now!
CLICK HERE TO VIEW ALL FALLER
PRODUCTS
It's Time for Cartoons: New Signs Arrive from Miller
Engineering
Miller Engineering Light Works USA line of animated neon
signs and billboards are very popular with modelers who
want to add
action and animation to their layout scenes. New
arrivals include a variety of billboards and window
signs featuring Looney Tunes
cartoon characters as well as popular automotive icons
Michelin and Napa Auto Parts. Most signs are available
in sizes suitable
for HO, N and O Scales. Each includes a battery pack,
electronics circuit and complete instructions. Get them
on your
roadsides and rooftops now!
CLICK HERE TO VIEW ALL THE MILLER
ENGINEERING PRODUCTS
THANKS FOR THE
SUPPORT! |
