What are Hornby up to ?

Heard a rumour that they are only interested in the top 20 dealers, rest can
have a few crumbs but thats it. If it is true that am very dissapointed in
them, the smaller shops - especially general toy ones - can bring people
into the hobby. Grandad and granma go into toy shop wondering what to get
little johnny (or janet), see a trainset, thats 3 generations suddenly
exposed to trains. If one of them gets hooked then that can be a hundred
locos over the next few years.
So are Hornby going for short term profits and ignore the future ?
Cheers,
Simon
Reply to
simon
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"Shipping and handling", and other overhead, which costs far more than people outside retail realise. I'm a small shop, shipping costs anywhere from 5 to 15% of retail price. In addition to his own S&H, the manufacturer/distributor must also figure in cost of warehousing/inventory tracking/billing/advertising/etc, all included in the net price I pay. You'd also be surprised how much packaging can cost. Fact is, by the time an item ends up on the shop shelf, the ex-factory price will make up 30% or less of what you pay.
HTH Wolf K.
Reply to
Wolf K
In order to have a trade account with Hornby directly, you need to have a certain minimum volume of sales. Any retailer with sales volumes below that has to buy from a wholesaler instead.
That's not particularly unusual; a lot of manufacturers have similar policies. The difference is that Hornby is the only model railway manufacturer big enough to be in a position to make that distinction. Hornby's UK turnover is an order of magnitude bigger than all their rivals put together, and their distribution model is correspondingly different. But that doesn't mean it's harder for small retailers to get Hornby products, because the fact that Hornby uses the wholesale channel (which the other manufacturers mostly don't) means that there are several competing wholesale suppliers that retailer can use.
If anything, the fact that Hornby uses wholesale distribution helps, not hinders, them in the toy shop market, because toy retailers can get Hornby products from the same wholesaler as their other products. Bachmann and Dapol don't sell via wholesale, which means that a retailer which does want to stock their products has to open an account directly, something which a lot of smaller toy retailers - especially the ones that don't sell a lot of model railway products - tend not to do.
Mark
Reply to
Mark Goodge
Does that actually happen, given the cost of a trainset? Surely if they were spending that much they'd at least check if it was wanted and the right thing.
Reply to
Arthur Figgis
When my late father retired after 40 years on the railway, I gave him a "high end" Graham Farish set and the only time it came out to play was when my niece was there.
Reply to
Christopher A. Lee
Not really suprised, often internet box shifters can sell for less than small shops can buy. But the point am making is do we want only box shifters as suppliers, doesnt that lead to reduction in mainstream buying in the future. Tis like BR closing local stations as uneconomic cos ignore the 'feeder' quota ?
Cheers, Simon
Reply to
simon
Not as much as should, hence there are boxed trainsets in every toy cupboard and loft :-) Toys are expensive nowadays, just look at a computer game - GBP40 average when first released, which is when children need it. Not a big package under the xmas tree on its own.
Cheers, Simon
Reply to
simon
Yep, a chance for one of them to get hooked, not a bite every time :-)
Reply to
simon
If you leave out all but top 20 thats some big sellers.
Cheers, Simon
Reply to
simon
Especially considering that 40 years earlier my family all bought different bits of Hornby clockwork for me one Christmas, much of it pre-war second hand cos you got more that way.
He and my uncle very kindly set it up for me, laying the track on the floor, and very kindly played with it for me.
Reply to
Christopher A. Lee
My father did similar, one xmas he built a layout for me, wasn't allowed to see it till xmas day when it was complete. Few months later it was dismantled and only allowed track+locos out on birthdays and high holidays. Determined not to make that mistake, have laid track and done electrics under supervision of tot, but refuse to do any more untill we both get a paintbush out for track and ballast. Only been 6 months now.
Cheers, Simon
Reply to
simon
When I was going to set up an internet Model shop a few years ago, I was stonewalled when I wanted to set up a wholesale account with Hornby. To get a wholesale account you had to have a physical shop. Have things changed now?
Rob.
Reply to
news.plus.net
No, in real terms toys are /cheap/ nowadays. 40 quid would get a lot more than it used to. In ye good old days a computer game would cost the equivalent of millions, and rather than shooting up aliens you could only use it to read German government communications...
Reply to
Arthur Figgis
Depends what you mean by "dealers". Small traders will buy through distributors or wholesalers. When I looked at a local independent toyshop that was for sale they bought most stuff through a group buying scheme. A bit like wholesale but you had to be a member of the scheme and collect from the warehouse yourself.
The "top 20" probably accounts for quite a proportion of Hornby's sales.
It's usual in many industries to have some direct accounts and some "channel" accounts.
MBQ
Reply to
manatbandq
Hatton's has a physical shop.
Reply to
MartinS
Amazon doesn't.
Mark
Reply to
Mark Goodge
Perhaps, but then are we talking about apples or pears :-)
Cheers, Simon
Reply to
simon
You sure about that - could be an 'accountancy' one :-)
Cheers, Simon
Reply to
simon
Depends what you mean by "dealers". Small traders will buy through distributors or wholesalers. When I looked at a local independent toyshop that was for sale they bought most stuff through a group buying scheme. A bit like wholesale but you had to be a member of the scheme and collect from the warehouse yourself.
The "top 20" probably accounts for quite a proportion of Hornby's sales.
It's usual in many industries to have some direct accounts and some "channel" accounts.
MBQ
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Well Hornby list 850 stockists on their site for UK and ROI ....
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But am not talking about volume, its visibility. Think of it as a type of advertising. Go to toy shop to buy present, not decided what present, see trainset .......
Cheers, Simon
Reply to
simon
I wouldn't know. Amazon.ca doesn't sell models.
Reply to
MartinS

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