Hurrah for local model shops

Jan 03, 2007 82 Replies

"usenet" wrote

Peco used to supply through the wholesale division of W & H (Models) Ltd of New Cavendish Street, London, until they went bust some few years ago. They always used this as one excuse why they wouldn't supply more than one retailer in any given area.

I believe so, they do not offer wholesale terms to anyone. In the past this has given some wholesale/retail conglomerates a financial advantage over pure retailers and allowed them to easily under-cut the latter.

I believe Peco charge the same trade price to all retailers irrespective of their size, unlike some of the other model railway manufacturers who favour some of their larger accounts with additional discounts.

John.

On 05/01/2007 13:34, usenet said,

That's Peco for you! Don't forget, it isn't that long since they admitted to the existence of this new-fangled interweb malarkey, and allowed advertisers to show a web address.

Strange company indeed :-)

I don't think their status is relevant.

Yes but AB Gee would be free to refuse to sell to anyone by their own criteria, just not under the instructions of PECO.

I believe so, and they are also distributors for a number of other product lines in the PPP catalogue. (Don't you just love that name - so

19th century, a bit like PECO by some accounts)

MBQ

Hmm!

I guess that accounts for the lack of difference in prices for their products.

But at least it puts the smaller boys on the same level as the bigger ones. That at least is a good thing!

Thanks John

PPP = Pritchard Patent Products, IIRC.

rep 3012

I remember Modern Models adding the .COM bit to their company name to get around this ludicrous ruling!

I know when we lived in Seaton, my wife applied for a job with them and got a typewritten reply indicating that she was just too qualified to work for them in any capacity!

She only had perfectly standard office skills such as WP and being able to do shorthand etc!

I did ask Michael Pritchard once if they would ever move production to the far East and he was pretty much against that. I think he was concerned about the effect that would have on the local economy. PECO is a major employer in east Devon. I did have respect for him on that point even if the firm is a bit fuddy duddy in many respects.

Pritchard Patent Product Company.

Just "product" in the name I think - and it was their coupling they licensed to Hornby and Trix. The (small but a lot of) royalties from this paid for the development of the company and its other products.

timeThis situation has come up before.

Yes. Just as it's legal for a retail business to refuse to sell to you or I.

There is EU legislation on restraint of trade. There are other exemptions besides franchise, such as exclusive distribution agreements.

The five basic elements are:

- Resale price maintenance: A supplier is not allowed to fix the price at which distributors can resell his products.

Not entirely accurate. An importer based oustside the EU (which would include Bachmann and Hornby) can insist that goods are not *advertised* below a certain minimum price or "MAP" as it is known. A dealer may sell for whatever they like but they may not advertise the fact. If they do they risk having their supply of imports cut offf.

(kim)

Suppose not, just seems a bit cosy!

True, I dare say they place enough hoops in the way for potential stockists.

Very much so, I've had first hand experience of that, see another post in this thread!

"usenet" wrote

I'm not sure that I made my point clearly. It was the fact that any retailer could get an account with W&H so there was no need for Peco to supply more than one shop in an area.

John.

"usenet" wrote

I'm also told that Peco buy postage stamps in bulk from their local Post Office rather than using a franking machine. In this way they hope to extend the life of their local P.O..

Admirable attitude in my opinion.

John.

wrote

If all model railway manufacturers had the same level of morality & integrity and were as easy to deal with as Peco then I suspect there would be more model shops thriving around the country. That has always been Peco's objective for sure.

John.

"John Turner" wrote in news:459e995e$0$4871$ snipped-for-privacy@free.teranews.com:

I couldn't agree more and based on what you've posted I'm glad I purchase their products - remembering of course that Wills and Ratio are part of thier empire.

One can only wonder though at how long the government along with the EU will allow them to remain in business. If it's not UK taxes (on everything - often several times), employment laws designed to hold employers to "workers" ransom we have EU regulation adding costs to almost everything.

Remember Dapol last year (I think it was) over a £1000 in lab tests to establish that a grain of wheat bulb in an engine wouldn't blind all and sundry.

A 100 years ago this lot would have been strung up by now.

Well, that is good to hear John. Maybe I shouldn't get too upset about their little foibles in future!

;-)

That does put a different slant on it!

Thanks for the clarification.

No, it doesn't. They can't refuse to supply a retailer specifically because said retailer is planning to undercut their existing retailers on price, as that would be anti-competitive practice. But they can refuse to supply on pretty much any other basis, and the concept of "one account per region" is perfectly valid.

If that is the case, then the existing account-holder could well lose their account if sales drop off enough.

Mark

I tried something like that. It didn't help. The decision to close had already been taken and no amount of appeals, protests, hearings or petitions made any difference. The same will be true for the rural post offices.

(kim)

When I send off my Railway Modeller magazines each year to Peco for binding they always let me know they have arrived and - particularly if there is any delay in returning the bound volume - let me know when it is likely to leave their premises. Also, on the odd occasions I have written to them if a full answer can't be given quickly they will send a "holding" reply anyway. Maybe it seems a bit "olde worlde" to behave in this manner, but - in my opinion - it is a polite gesture and another plus point for Peco.

David Costigan

We had something similar happen here when our tiny sub post office had the National Lottery ticket and scratch card sales facility removed because it was not taking sufficient money. When we complained to the National Lottery people they said that the nearest Lottery sales point was only 12 miles away. When we pointed out that getting there involved a two hour trip on the ferry and a six hour wait for the return trip (another two hours) there was a deafening silence. We are still waiting to hear whether our local sub post office has escaped the recently announced round of closures.

So with the ferry dependent on the weather I suppose its a bit of a lottery if you can play the Lottery !

Would you like me to get the tickets for you - you could send me money every week, I'll buy the tickets and send you any profit. Best if I choose your numbers though.

Cheers, Simon

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