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A word about pricing...(You expect your buddy to support you, to be honest
and to be trustworthy. We want to be your buddy...can you handle it?)
Train Buddy general strategy:
The Train Buddy's motto is "Sharing the Joy of Model
Railroading." We have extended this motto to include the price.
Whatever we make is "shared" (or halved if you prefer) with you. In math
terms, a typical boxcar cost the Train Buddy $6. The manufacturer's
suggested retail price (MSRP) is $10. The Train Buddy sells to the
Internet and general public at $8. You get $2 we get $2...sharing! (I pray
that you had the opportunity to grasp this concept at an early age.) We
show this as a 20% discount. There are over 150 thousand products at this
writing on our web site. The computer does the work of generating the
prices so: it is what it is. There are mistakes...admittedly, but there is
no individual effort to attempt to get a bigger slice of the pie (read this as
NOT sharing).
Retail stores:
If we had a retail store in a very conspicuous place (expensive rent), we may be
inclined to "keystone" or double the cost, as some do. This would mean
that some large display retail stores show the price as $12. ($6 times 2 is
$12). In this case the Train Buddy is saving you $4! (keep up
now:$12-$8=$4). Oh, and here is the kicker, if a large retail shop offers
you a 20% discount on $12 it is
(12*.2=2.40) or $9.60 which is STILL $1.60 higher than the Train Buddy!
Discount houses/Internet sites:
Just like your local grocery store, some Internet sites and large "discount
houses" have "loss leaders". This is an advertised price for an item to
get you "in the store" or to buy from them. They know that once you are
there then you will buy other stuff to meet the minimums to pay for the shipping
and handling charges (see below). Sometimes they are "out". Just
like at the grocery store. Sometimes they have quantity limitations,
credit limitations or other excuses why you can't have the product at their
published price. Sometimes they NEVER had it! Well, under the
fair-trade act they are required to have had at least one and sold it at the
published price. The Train Buddy says, "We will always give it to you
at their price any day that we DON'T have it. But when we have it, it is at the
Train Buddy price."
Just plain crooks:
There are "unscrupulous" dealers out there (...no, really?...) and they will
sell you an older model product or a lower cost substitute in a brand-name box.
We are aware of ways to do this and have elected to not do this for the sake of
reputation and longevity of customer base. We are aware that this has
happened from other dealers. We see it in advertised products from other
discount or Internet dealers. We know that they can't get it and sell it
and make any profit for the price they are advertising it for. The old
adage "If it looks too good to be true then it probably isn't." holds court here.
There is a reason for their price and it ain't pretty.
Shipping and handling:
Another way to make up the difference between the advertised and "real" cost is
to jack up the shipping and handling fees. Today, most things under a
pound are shippable by USPS at around $4.50. Now, admittedly, to pack and
ship is a chore that is not fun nor is it zero time. We expect a couple of
bucks to do this and we try to defray our costs based on the prices that we
charge. We also have a maximum charge unless it is a bulky or oversize
item. But seriously, some Internet vendors are gougers when it comes to
shipping charges.
Minimum advertised price (MAP):
Recently, several manufacturers have asked dealers to sign a "MAP"
(minimum advertised price) consent. It basically says that we won't
advertise a price on a product below what the manufacturer says. Now for
some manufacturers, believe it or not, this is the MSRP. Others realize
that the Internet exists and so say it is about 20% (depending on the
manufacturer) below MSRP. (Amazing...this is the price the Train Buddy has
been listing all along!) Why do they do this? Because they realize
that pricing DOES make a difference when it comes to the perception, not
reality, of the VALUE of their product in the market place. They realize
that if a discount house starts to advertise their product as a loss leader then
the consumer will say, "I'll just wait until it goes on sale at xxxx discount
house" rather than buy it from their local dealer at a fair price. This
stifles total sales and is not obviously good for the manufacturer. Here
the discount house is not the customer's friend (they never were!)
Support:
We are asked for help, especially when it comes to complex electrical or DCC
issues. While we have tried to answer many of the common questions on this
site, we can't anticipate all the detailed questions. Now, if you are a
customer of ours, then we will be more than happy to answer or research any
question you may have. In many local instances we have visited the layout and
have even helped build it. If you don't buy from us then you might
understand if we are less than enthusiastic about giving out "free" support.
By the way, this is why you want to buy from us anyway. If you bought from
another dealer, then ask them about their support on the product. We have
an electrical engineer on staff to answer all of your electrical and DCC
questions. We also provide installation and repair services on all scales
and makes of equipment.
Bottom line..."You get what you pay for." At the Train Buddy you get
GREAT pricing, GREAT support and NO tricks.
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