Sale of the Century from Hattons

[Robin Brasher]

I always associate Christmas Day with playing with a new train set and this Christmas my new train set was an N gauge Midland Pullman from Hattons' Sale of the Century. Although there are now only three sets left the Pullman has not sold very quickly as there were about eight left when the sale started but it is an attractive model. The pictures show a sequence of opening the box, to running in for 1/2 hour in each direction and finally running the set.

[Steamport Southport]

Very nice. I love that menu.

 

I also bought a train set from Hatton's this year.  

 

Mainly because the price was good in that 12 days of Christmas thing. The Midland Marvel set with a MR 3F 0-6-0, two PO wagons and an LMS brake van for about £95. I was mainly after the engine and brake van so anything else is a bonus.

 

 

Jason

[The Stationmaster]

What's happened to the steak sandwiches on the High Tea menu?  I always had those when travelling up from Cardiff on Friday afternoons back in the late 1960s.

[Ian Hargrave]

What's happened to the steak sandwiches on the High Tea menu?  I always had those when travelling up from Cardiff on Friday afternoons back in the late 1960s.

A meal on one of the WR’s Blue Pullmans was affordable,though you were probably better off with a sandwich,being in the hand as it were,than full silver service as the ride could occasionally be lively.Oh how I miss those meal at seat days.Progress ?

[forest2807]

There is a particular item that I have been considering purchasing for a while now, and at the start of December the item appeared in the Hattons ‘Sale of the Century’ at a discounted price. I have kept a close eye on the stock levels for this item, and similar items, and none have sold particularly quickly, even in the sale. I had expected them to be more sought after, and I wonder if Hattons also hoped to shift them more quickly at the sale price.

I now find myself wondering if I do not make the purchase during the sale period, will the item be further reduced after the sale ends in order to clear the stock which is not selling as quickly as perhaps Hattons hoped? Or will it return to pre-sale prices? Any retail experts out there with some insight into retailers tactics?

[davefromacrossthepond]

There is a particular item that I have been considering purchasing for a while now, and at the start of December the item appeared in the Hattons ‘Sale of the Century’ at a discounted price. I have kept a close eye on the stock levels for this item, and similar items, and none have sold particularly quickly, even in the sale. I had expected them to be more sought after, and I wonder if Hattons also hoped to shift them more quickly at the sale price.

I now find myself wondering if I do not make the purchase during the sale period, will the item be further reduced after the sale ends in order to clear the stock which is not selling as quickly as perhaps Hattons hoped? Or will it return to pre-sale prices? Any retail experts out there with some insight into retailers tactics?

I've been buying retail for over 40 years.  In my experience, if there is something that I want and it is on sale - if I don't buy it, the price will go up  If I do buy it, the price will go down.  My mom used to tell me . . .  if an item has a price that you feel is worth paying then buy it.  And don't look at the price again for about a year.  Smart woman was my mom. 

[Andy Hayter]

There is a particular item that I have been considering purchasing for a while now, and at the start of December the item appeared in the Hattons ‘Sale of the Century’ at a discounted price. I have kept a close eye on the stock levels for this item, and similar items, and none have sold particularly quickly, even in the sale. I had expected them to be more sought after, and I wonder if Hattons also hoped to shift them more quickly at the sale price.

I now find myself wondering if I do not make the purchase during the sale period, will the item be further reduced after the sale ends in order to clear the stock which is not selling as quickly as perhaps Hattons hoped? Or will it return to pre-sale prices? Any retail experts out there with some insight into retailers tactics?

 

Sales may be held for a number of reasons.

 

In a physical store, having sales items encourages people to enter the shop (footfall) and then maybe buy other goods as well.  Sales items could be seen as loss-leaders (although not always sold at a loss.)

 

In the case of what is essentially an internet driven sale, then footfall does not really come into it.  The purpose is simply a way of generating cash.  A Sale of the Century suggests a "need" to generate an awful lot of cash - especially when it includes relatively recently released items, that in truth might be seen as rather early to be being declared as "redundant" stock.

 

So where does that leave the question of whether the price will stay the same after the sale, go up, or go down further?  That will depend at least in part on whether the cash generation objectives have been reached or not.   Hattons have always been shrewd players in the market.  I would not expect them to further significantly discount immediately after this sale, because this would damage trust in further sales.  If the price does come back lower still, expect it to be some months further down the track.   However by then whatever the urgency for cash that is current, may well have passed - so don't hold your breath for an even better price.

[Steamport Southport]

This is just getting rid of old stock that doesn't sell for various reasons. I think people really are reading far too much into it.

 

Just look at what's on sale. Rails and Kernow are selling off the same items or have already done so.

 

I know, as I've already bought half the stuff which is in Hatton's sale from Rails (Heljan diesels and Bachmann RODs for example) and Kernow (cheap carriages and wagons) for similar prices.

 

 

 

Jason

['CHARD]

This is just getting rid of old stock that doesn't sell for various reasons. I think people really are reading far too much into it.

 

Just look at what's on sale. Rails and Kernow are selling off the same items or have already done so.

 

I know, as I've already bought half the stuff which is in Hatton's sale from Rails (Heljan diesels and Bachmann RODs for example) and Kernow (cheap carriages and wagons) for similar prices.

 

 

And Hattons presumably had larger stock of many of these items, making it 'Scale of the Century.'

[forest2807]

This is just getting rid of old stock that doesn't sell for various reasons. I think people really are reading far too much into it.

 Jason

If this is the case then it doesn’t appear to be working. The item I am interested in (and others like it) are still showing as having 10+ in stock. Could it be that the lower prices are not attracting purchasers as the ‘old stock’ is not shifting?

 

Thanks for all the detailed replies to my initial query btw, some interesting insights.

[Robin Brasher]

Hattons has still got over 10 of my favourite locomotives: three versions of the 700 and six versions of the Adams Radial.

 

I think everyone who wanted one has already got one so any further reductions in price will not make any difference.

[Andy Hayter]

This is just getting rid of old stock that doesn't sell for various reasons. I think people really are reading far too much into it.

 

 

 

 

Jason

 

Getting rid of old stock.  I agree - although some of the old stock is quite new.  

I can only think of 3 reasons to do so however.

1.  You bought it on tick and the interest payments are too high.   I doubt Hattons buy on tick.

2.  Your warehousing costs are crippling.  While warehousing may be a factor, I doubt that even for Hattons it would be crippling

3.  To generate cash.  And if you don't "need the cash", then why sell at a reduced price when you can get your full price next week, next month, next year.

 

I do agree they are getting rid of excess stock, but of the 3 options above only number 3 makes sense wrt Hattons - unless you feel they are an altruistic operation out to serve the better interests of the railway modeller only.

 

As for reading too much: that may be you.  I very carefully put need for cash in inverted commas, since I have absolutely no reason to think that they are cash strapped to run their current business.  They may however need cash in volume to meet their future aspirations and it was in this context that I used "need" - for the safeguarding of their future strategy.  

[adb968008]

If you like reading into things, then read companies house, rather than the sales page.

https://beta.companieshouse.gov.uk/company/05131251/filing-history

That said it doesnt list any specific bargains in there.

Edited December 27, 2018 by adb968008

[Andrew1974]

There could of course many many reasons why Hattons have decided to try and off load some stock, in reality it is probably a mix of a number of reasons.

 

My experience in business is that getting the balance of the right amount of stock is tricky, not enough and you end up not being able to satisfy demand, too much and it ties up cash, costs money to store and just gets in the way of doing business.

 

Hattons most recent accounts are as at June 2017, so are now 18 months old so not necesssrily helpful for understanding what is happening at the end of 2018, but show stock of £3.2m after a provision of £1.0m, giving stock with an original cost of £4.2m.

 

The accounts also state that he costs of stock sold in the year is £9.1m so they stock holding equates to approximately 5 and a half months worth of stock, for a retail business that seems quite high.

 

If I was running that business I might be tempted to try to get rid of some of my overstocked items as well, even if I was OK for cash.

[Robin Brasher]

Hornby R3311 Westminster and R3332 King Edward Vlll have probably been in their warehouse for a lot longer than five and a half months but they are now sold out due to the Sale of the Century.

 

More than 10 left of a lot more sale items and only three days left. I think we will see some more Hattons sales next year.

[298]

Hattons has still got over 10 of my favourite locomotives: three versions of the 700 and six versions of the Adams Radial.I think everyone who wanted one has already got one so any further reductions in price will not make any difference.

The same could be said for Heljan Met electrics, with several including Sarah Siddons at £64/£69 with more than 10 still in stock.

 

Is £64 a bargain price? Yes.

 

Has everyone who wants one brought them at £64? Yes.

 

Have they been devalued after the LT Museum had Sarahs recently on sale for £35 (And probably all snapped up by speculators)..? Yes.

 

Is anyone going to be able to sell one for more than these prices now the market has been saturated...?

[The Stationmaster]

There could of course many many reasons why Hattons have decided to try and off load some stock, in reality it is probably a mix of a number of reasons.

 

My experience in business is that getting the balance of the right amount of stock is tricky, not enough and you end up not being able to satisfy demand, too much and it ties up cash, costs money to store and just gets in the way of doing business.

 

Hattons most recent accounts are as at June 2017, so are now 18 months old so not necesssrily helpful for understanding what is happening at the end of 2018, but show stock of £3.2m after a provision of £1.0m, giving stock with an original cost of £4.2m.

 

The accounts also state that he costs of stock sold in the year is £9.1m so they stock holding equates to approximately 5 and a half months worth of stock, for a retail business that seems quite high.

 

If I was running that business I might be tempted to try to get rid of some of my overstocked items as well, even if I was OK for cash.

 

Plus there have been a number of other changes together with a shift in business emphasis at the company.  Control would now seem to have passed from the Hattons family (although the name remains).  there is obviously considerable expense involved in tooling for various 'own label' models such as the upcoming gauge 0 range, and conditions of trading by the 'big two' must undoubtedly have an impact on a concern which for a long time operated on very small margins but with a high rate of turnover thus potentially impacting on their market and financial model.  Overall Hattons appear to be changing apart from any need to divest themselves of slower moving stock holdings.

[Jonboy]

Getting rid of old stock. I agree - although some of the old stock is quite new.

I can only think of 3 reasons to do so however.

1. You bought it on tick and the interest payments are too high. I doubt Hattons buy on tick.

2. Your warehousing costs are crippling. While warehousing may be a factor, I doubt that even for Hattons it would be crippling

3. To generate cash. And if you don't "need the cash", then why sell at a reduced price when you can get your full price next week, next month, next year.

 

I do agree they are getting rid of excess stock, but of the 3 options above only number 3 makes sense wrt Hattons - unless you feel they are an altruistic operation out to serve the better interests of the railway modeller only.

 

As for reading too much: that may be you. I very carefully put need for cash in inverted commas, since I have absolutely no reason to think that they are cash strapped to run their current business. They may however need cash in volume to meet their future aspirations and it was in this context that I used "need" - for the safeguarding of their future strategy.

 

The one you may have missed is physically needing more space in the warehouse, if you assume you need a shelf front space for each item so your pickers can find it you would need(educated guess as someone involved in a very similar mail order type business) as much space for one loco as 10, but may need 2 spaces for 11 to 20, and 3 for 21 to 30 locos of the same item. When it gets close to filling up do you rent a second warehouse( with a stepped cost) or clear excess stock... Edited December 28, 2018 by Jonboy

[woodenhead]

The one you may have missed is physically needing more space in the warehouse, if you assume you need a shelf front space for each item so your pickers can find it you would need(educated guess as someone involved in a very similar mail order type business) as much space for one loco as 10, but may need 2 spaces for 11 to 20, and 3 for 21 to 30 locos of the same item. When it gets close to filling up do you rent a second warehouse( with a stepped cost) or clear excess stock...

With a lot of own product i.e. the class 66 expected which will need space in the warehouse - plus the O gauge locos and coaches that are coming,.

[JSpencer]

One question I did not see asked above was, does the sale promote the company? Yes.

 

Are customers likely to buy little sidelines at the same time? Yes.

 

We did the same time to time at the Signalbox in the 90s. Preferably before the following years range was announced. No sign of difficulties, just good business practice to promote and expand the company.

[Steamport Southport]

If this is the case then it doesn’t appear to be working. The item I am interested in (and others like it) are still showing as having 10+ in stock. Could it be that the lower prices are not attracting purchasers as the ‘old stock’ is not shifting?

 

Thanks for all the detailed replies to my initial query btw, some interesting insights.

 

It all depends on how many they had in the first place. I'm guessing some items would be in their hundreds, if not thousands.

 

 

 

Jason

[Robin Brasher]

The same could be said for Heljan Met electrics, with several including Sarah Siddons at £64/£69 with more than 10 still in stock.

 

Is £64 a bargain price? Yes.

 

Has everyone who wants one brought them at £64? Yes.

 

Have they been devalued after the LT Museum had Sarahs recently on sale for £35 (And probably all snapped up by speculators)..? Yes.

 

Is anyone going to be able to sell one for more than these prices now the market has been saturated...?

I did buy a Heljan 9008 'Sarah Siddons' fairly early in the sale. I did not buy it when it came out because of the price, there are no Metropolitan coaches to go with it and I have not seen any reports of it running on the Swanage Railway that I am modelling. I have not taken it out of the box yet but I am interested in the locomotive and I am glad I bought it. When Hornby made their version in the 1930s they also produced some carriages to go with it and I enjoy watching it at the Hornby Railway Collectors Association meetings. I thought it was well suited to 0 gauge track and some people have fitted light emitting diodes to imitate the electric flashes. I think the Hornby version also had a headlamp.

[Steamport Southport]

I did buy a Heljan 9008 'Sarah Siddons' fairly early in the sale. I did not buy it when it came out because of the price, there are no Metropolitan coaches to go with it and I have not seen any reports of it running on the Swanage Railway that I am modelling. I have not taken it out of the box yet but I am interested in the locomotive and I am glad I bought it. When Hornby made their version in the 1930s they also produced some carriages to go with it and I enjoy watching it at the Hornby Railway Collectors Association meetings. I thought it was well suited to 0 gauge track and some people have fitted light emitting diodes to imitate the electric flashes. I think the Hornby version also had a headlamp.

 

If you're looking for an excuse to run Sarah Siddons on the Southern Region...

 

http://www.disused-stations.org.uk/d/dover_western_docks/index3.shtml

 

 

 

Jason

[Robin Brasher]

If you're looking for an excuse to run Sarah Siddons on the Southern Region...

 

http://www.disused-stations.org.uk/d/dover_western_docks/index3.shtml

 

 

 

Jason

& I can run it with my rake of blue and grey Mk1s.

[spikey]

Very nice. I love that menu.

 

Me too.  Anybody know what year that was?