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Good news for MTL-----Bad news for consumers

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  • loren snyder
    I don t think any other dealers have mentioned this before, and forgive me if they have, but I ll go ahead and share this with you all. On August 29th, Eric
    Message 1 of 4 , Sep 6, 2006
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      I don't think any other dealers have mentioned this before, and
      forgive me if they have, but I'll go ahead and share this with you all.

      On August 29th, Eric Smith sent a letter to all dealers announcing a
      price increase effective October 1st.

      MTL is proud of the fact that they have not increased prices on their
      N, Nn3, and Z scale, model train trucks, Magne-Matic Couplers,and
      other model train accessories for more than two years.

      Unfortunately, inflation and other factores have finally caught up
      with MTL.

      The increase will only affect new merchandise manufactured after
      October 1, 2006. There will be a few exceptions, but I'm not told
      what they will be.

      Eric states that any merchandise manufactured prior to October 1st
      will not be affected by the price increase.

      So, looks like we'll all have to cut back on our soda purchases or
      whatever in order to save for that 5% increase.

      The dealers will notice the price increase reflected in the regular
      quarterly updated price list, dated October 1st. 2006.

      If any of you were thinking of ordering anything from your dealer that
      they may not currently have on the shelf, now is the time to do it as
      it will cost you 5% more in October.

      Just when you thought it was safe to go back into the water,

      Loren
    • Allan Miller
      Well, I m not really complaining since I buy items on a fairly selective basis, shop around for what I feel is the best price (combined with the best and most
      Message 2 of 4 , Sep 7, 2006
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        Well, I'm not really complaining since I buy items on a fairly
        selective basis, shop around for what I feel is the best price
        (combined with the best and most reliable service), and will sometimes
        settle for just one item instead of buying two, but it seems to me
        that MTL's pricing hasn't been exactly static in any event.

        The GP35s, for example, seem to have been priced a bit higher with
        each successive issue, and I suppose others have seen some creeping
        price inflation with other items and from other manufacturers, as well.

        An across-the-board price increase is a horse of a different color, of
        course, but these manufacturers will do what they feel they have to do
        (or what they feel the market will bear). In the end, the market
        itself pretty much determines what it is willing to absorb, and that
        is reflected by actual sales, or the lack thereof.

        Allan

        --- In z_scale@yahoogroups.com, "loren snyder" <ljsnyder@...> wrote:
        >
        > On August 29th, Eric Smith sent a letter to all dealers announcing a
        > price increase effective October 1st.
        >
      • Randall Smidt
        I m honestly surprised we haven t seen this sooner. MTL has done a great job in keeping prices down and their pricing seems to reflect actual manufacturing
        Message 3 of 4 , Sep 7, 2006
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          I'm honestly surprised we haven't seen this sooner. MTL has done a great job in keeping prices down and their pricing seems to reflect actual manufacturing costs not just what they can get for a product. If you look at recent releases like the GP35's for example, much of the pricing is based on how complex the paint schemes are. More colors higher cost, but on the less complex schemes they don't level off the price at the same price as the schemes that are more expensive to produce but rather pass the lower cost on to the customer. Not all manufacturers do this.

          5% is nothing compared to the 17% or 19% increase we saw in the already high priced Marklin product line last year. That did impact my buying. This MTL increase most likely won't. In the end, I will spend just as much, I just might get a little bit less because of it.

          Randy Smidt

          loren snyder <ljsnyder@...> wrote:
          I don't think any other dealers have mentioned this before, and
          forgive me if they have, but I'll go ahead and share this with you all.

          On August 29th, Eric Smith sent a letter to all dealers announcing a
          price increase effective October 1st.

          MTL is proud of the fact that they have not increased prices on their
          N, Nn3, and Z scale, model train trucks, Magne-Matic Couplers,and
          other model train accessories for more than two years.

          Unfortunately, inflation and other factores have finally caught up
          with MTL.

          The increase will only affect new merchandise manufactured after
          October 1, 2006. There will be a few exceptions, but I'm not told
          what they will be.

          Eric states that any merchandise manufactured prior to October 1st
          will not be affected by the price increase.

          So, looks like we'll all have to cut back on our soda purchases or
          whatever in order to save for that 5% increase.

          The dealers will notice the price increase reflected in the regular
          quarterly updated price list, dated October 1st. 2006.

          If any of you were thinking of ordering anything from your dealer that
          they may not currently have on the shelf, now is the time to do it as
          it will cost you 5% more in October.

          Just when you thought it was safe to go back into the water,

          Loren






          [Non-text portions of this message have been removed]
        • Malcolm Cleaveland
          The MTL prices must be looked at in context. They are somewhat expensive compared to some of the other manufacturers in N. My LHS owner says that many of his
          Message 4 of 4 , Sep 7, 2006
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            The MTL prices must be looked at in context. They are somewhat
            expensive compared to some of the other manufacturers in N. My LHS owner
            says that many of his customers won't buy the MTL N scale releases because
            they're "too expensive". Note that the LHS owner gives a discount on all
            sales. In Z we're used to paying high prices and the MTL quality is tops.
            I have no problem paying for a quality product, just cannot get as much as
            I would like. An example, the flex track is very expensive and
            ridiculously short, but the only N. American tie spacing available. If
            Peco would wake up and smell the coffee, they could make a lot of money
            competing for the N. American market.

            Question for Joe: Why Union Pacific locos, but the only UP rolling
            stock recently was the ridiculous (retired after one year) "Campbell Soup"
            paint scheme? I would hope that a modern UP boxcar is coming down the
            road sometime soon.

            CheerZ,
            -- Malcolm Z
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