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Hornby model shop Tiers system


Phil Parker
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1 minute ago, Steamport Southport said:

 

Yep. That was kind of my point.  :)

 

If you send it all to the large retailers then you don't need loads of people picking at full rates of pay. Picking is very labour intensive and time consuming. It's also a skilled job (contrary to what those who have never done it would think). The large warehouses have a high rate of staff turnover as it's such a difficult job and stressful. 

 

100 boxes of J15s to Hattons. 100 boxes of J15s to Kernow. etc. Easy.

1 pack of track pins. 1 pack of scatter material.  Then another hundred similar orders. Difficult.

 

 

Jason

I'm not sure how stressful picking is by comparison with other occupations. As with most things, I suspect that may depend on the style of management rather than being inherent to the work.

 

I know several younger people (30-ish) who, laid off from various bits of the "hospitality" sector, found new jobs picking for supermarket home delivery services.

 

All are very happy in their new roles and the employers have been tailoring hours to individual needs in ways they definitely weren't used to.

 

Their workload so far hasn't diminished as lockdown comes to an end, and not one has expressed any desire to return to their previous trade now that is re-opening. 

 

John   

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23 minutes ago, phil-b259 said:

I can easily see Hornbys accountants or bankers saying 'ditch the small retailers who only order stuff in dribs and drabs - that takes up a disproportionate am mount of time. make sure the people you order put in big orders across our portfilo of brands' yet being unwilling to say that in public. Instead they direct Hornby to come up with a strategy which does the same but sounds better (i.e. neat and tidy premises, etc)

 

 

Completely agree, exactly the same in my industry.

 

Though instead of ditching the sticks and stones, we outsource it to a wholesale reseller who’s more geared towards that and buys in volume from us.

 

 

 

 

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58 minutes ago, Trains4U said:

I'm pleased that Hornby have released this.  It takes a degree of pressure off in terms of having to explain things (or not) to customers.

But I would like to head off any "The retailers should have known" responses...

Hornby did issue a statement about Tier systems back in late January (After the previews) - However, this was very much geared towards the level of support that Hornby will provide (such as frequency of rep visits, access to point of sale materials, inclusion in advertising etc).  There was no mention at all of ordering restrictions, and whilst it seemed it would have an impact on some retailers, particularly the smallest or online only in terms of manufacturer support, it didn't represent a significant change (to us at least).

The information on page 1 of this thread is entirely new and is exactly how we retailers received it at the beginning of May.   It is a significant addendum to the tiering system described in January and came as a bit of a shock.  

This communication was received well after (And probably in response to) the order amendments, cancellations and subsequent furore that erupted over the early may bank holiday.

None of us were aware of this detail, the rationale behind it or the full implications before the 4th May.

Thank you for putting it in perspective as that makes a lot of difference.  Clearly then it neither applied in 2020 nor originally to models ordered in January 2020 and any reduction/cancellation of the supply of those will have been dealt with differently from the Tier system?  In fact it almost sounds as if the May communication was seen by Hornby as a way to sort out some of a mess situation that it had got itself into due to not having any such system and not having the stock which retailers had ordered ?

 

It also seems that the most recent communication appeared after the company had given its shareholders positive information about the supply chain only a few weeks previously.  So does it take us straight back to Hornby over-selling in the first place then finding it is unable to deliver everything it had sold or were models originally ordered by retailers diverted for sale through other routes (or a combination thereof)?  Simple question - what has happened to the models that retailers have pre-ordered?

 

Retailers have my deepest sympathy over this business and must once again make some of them very wary about bothering to place orders with Hornby.  i shall continue to buy from my 'local' model shops (both of whom would appear to fit the Tier 1 criteria so I'm luckier than many other end customers in that respect).  Although, equally, Hornby was already unlikely to see very much in the way of purchases frm me this year and the one I definitely had in mind was in the 'nice to' category so I won't now be bothering with it.

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1 hour ago, andyman7 said:

For £150+ superdetail models for the dedicated enthusiast maybe - but none of these ahow any desire to cover the majority of Horby's customer base. They are in a different business. 

 

Have you done a price comparison across all manufacturers ranges lately, Hornby aren't exactly bargain basement in all areas.

 

Mike.

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1 hour ago, newbryford said:

 

They have shown that they can repurpose that production at relatively short notice.

For the very worthwhile cause that was Capt Tom Moore................

Wasn't that just a paint/printing variant?  If so, it's a vastly different kettle of fish from producing more of one model and less of another.

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50 minutes ago, Wilkins said:

At this point, I shall note that I do not see read protests from the vast majority of the much-cherished local model shops I often read about. I can see one statement from an online trader who I have never heard of, but that is the sum of it. I appreciate that it seems Hatton’s are sadly missing out and I feel for them, but I refer to my earlier point. Class 66, Genesis Coaches, small industrial steam shunter. Apologies if I have missed anything here, but I do not read posts of concern from a long list of actual model shop owners. They seem to be well “represented/supported” by their consumers here on this forum. There certainly is some smoke but I cannot see a multitude of fires burning at this stage.

 

Given that Hornby are seemingly quite willing to cast adrift their two largest single customers - who are arguably the two biggest names in the hobby outwith the major manufacturers - my own supposition would be that perhaps the lack of any real public protest from the trader/shop fraternity has perhaps more to do with ensuring their own self-preservation than any lack of aggrieved status.

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1 minute ago, Widnes Model Centre said:

l know many on here have visited our shop. Do you think we are Tier 2 shop?

 

Having never visited you, a tad tricky from Spain!, as far as I'm concerned you are a model shop selling Hornby (amongst others) products.

My beef with this tier system is that you, and others like you, are being penalised for being a small business. If it bothered you about not being a "superior" tier 1 shop and you wanted to be one, buying all the peripheral products which Hornby expect you to would lead to bankruptcy and the loss of another model shop.

I can't see what Hornby hope to gain from this exercise, perhaps it's "design clever"

 

Mike.

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1 hour ago, adb968008 said:

 

Though instead of ditching the sticks and stones, we outsource it to a wholesale reseller who’s more geared towards that and buys in volume from us.

 

Isn't that what Hornby used to do, but then took it back in house? Seems to get can't make their minds up.

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I have always disliked the duplication of products by multiple manufacturers. I now suspect it could be open season for other producers to introduce items that Hornby refuse to supply to a increasing number of retailers/sellers. The next 12 months or so are going to be interesting and perhaps a turning point in model railway manufacturing.

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35 minutes ago, Widnes Model Centre said:

 

 

Having not read all the posts, we are willing to state our position.

 

We are in Tier 2. 

 

We only stock Model Railways, Airfix, Scalextric, Humbrol and Corgi of the Hornby brands.

 

You will be very disappointed if you visit as we have no heritage or museum items on display. If Dan at Derails and ourselves compared ages, Dan would say... ‘you’re the museum pieces’. You have to laugh or we would end up in Tiers.

 

l know many on here have visited our shop. Do you think we are Tier 2 shop?

You guys are one of the best examples of a high street bricks and mortar model shop I can possibly think of... your everything they are espoused to be trying to protect.

 

seriously ? Thats crazy.

 

perhaps you can share a few pictures of what a tier 2 model shop looks like... !

 

Maybe they are worried your going to become a showroom for that tier 3 racket up the road.


 

Edited by adb968008
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Just now, adb968008 said:

You guys are one of the best examples of a high street bricks and mortar model shop I can possibly think of... your everything they are espoused to be trying to protect.

 

seriously ? Thats crazy.

 

Maybe they are worried your going to become a showroom for that tier 3 racket up the road.


 


Which neatly exposes the flaws in the system.Was the “appraiser “ suffering from a hangover ? What banal nonsense.

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31 minutes ago, Widnes Model Centre said:

We are in Tier 2. 

 

We only stock Model Railways, Airfix, Scalextric, Humbrol and Corgi of the Hornby brands.

 

You will be very disappointed if you visit as we have no heritage or museum items on display. If Dan at Derails and ourselves compared ages, Dan would say... ‘you’re the museum pieces’. You have to laugh or we would end up in Tiers.

 

l know many on here have visited our shop. Do you think we are Tier 2 shop?

 

I'm going to stick my neck out here and try to suggest a reason why you might be Tier 2. I suspect that it has nothing to do with your shop (which from the videos on your Facebook page looks great) but I suspect that Hornby consider your website to not be effective. I would expect an effective website to allow purchases as a minimum. I do understand that this involves a lot of extra expense, time and effort and I recognise that not everyone wants to go down this route (everyone needs to make their own choices about it). 

Looking at the criteria from Hornby (below) it is only this area that you appear to fall down on. (Can't comment on the mail order side as I don't know if you do this). 

 

Quote

Tier 1 relates to those retailers that amongst other things maintain a clean and well laid out store and who promote several if not all of the Hornby Hobbies ranges, which includes as well as Hornby railways, Scalextric, Airfix, Humbrol and Corgi. These retailers invariably have an effective website and mail order service but more importantly they would also be able to provide help and guidance to their customers.

 

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34 minutes ago, Widnes Model Centre said:

 

Many thanks for your kind words.

 

Shop looks a bit different from the photo and when you last visited. We now have even more stock and a different layout, not to mention lots of Covid screens.

Tier2.jpg

Thats a fantastic array of Hornby down the left hand side, and a strong range of humbrol on the right... Didn't you have a whole bunch of scalectrix down the back too ?

The picture doesn't portray the depth of the store either... there is simply loads here !.. my daughter wanted to buy half the place.

 

 

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5 hours ago, APOLLO said:

Non stop tears - Buy from Gostude on ebay !!!!!!!!!!!!!!!!!!!!!  (Yes I did buy from him once and really did get a bargain - a rare one off !!)

I bought a couple of discontinued wagons from him a while ago. At the time I got them at the best price on the web.

 

Personally most new stuff these days comes from your Tier 2 route. For a trip to my nearest model shops I need to take a flask and sandwiches.

 

My old local shop would definitely not fit into Tier 1 but was a goldmine if you were looking for discontinued items or second hand donors for projects and the owner was a modeller who knew what he was talking about. As far as I recall he had problems with Hornby several years ago, I think they were insisting on minimum order quantities that were unrealistic for a small local retailer. He ended up getting his stock through a wholesale warehouse but I understand that Hornby no longer deals with them.

 

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1 hour ago, Wilkins said:

Hello all

 

I have been reading this forum for many many years, but now feel compelled to make my first post. For better for worse, probably my last.

 

I have been following this thread with much interest and thought I would share a few observations and thoughts.

Several pages of this forum are dedicated to the financial performance of Hornby over a great many years, and one can clearly see the considerable troubles they have suffered for a prolonged period. I would suggest that if this was any other company, it would have disappeared into extinction many years ago. But it hasn't has it. Largely due to the personal association and affection many people in the UK and around the world have for it. The support it has enjoyed from many places and factions is unprecedented in my experience. Even today, I cannot see anyway that it will ever pay its debts back, but it still carries on trying to reimburse those bodies or persons who have kept the faith.

 

Throughout these pages of financial debate, it is clear the passion and affection we all have for the brand, and it is nice to read so many posts wishing Hornby well in the run up to and immediate period and after a financial statement is made from Margate. While not everyone extends their encouragement, I would say that the majority of people on the forum wish them well and come up with all sorts of ideas to try and help them reach good financial health.

 

I shall note here, that while many wish Hornby their best wishes, they also cheer the endless march of new entrants to the market, none of whom have the same cost base, railways may not be there main business or source of income. They can pick off a few items here and there while perhaps only incorporating two margins ( factory and themselves) into the final price. Hornby, and to some extent Farish, Peco and Bachmann are charged with funding a complete system for the newcomer and the enthusiast, they have at least 4 margins in their product, factory, themselves, an overseas distributor, and a store. ….. always seems to be overlooked when discussing price. The large manufacturers with their sales reps, their service departments, their consumer services help lines, their sponsorship of major industry events, their marketing teams who keep the hobby in the public psyche are never compared fairly in my own very humble opinion.

 

Many in the industry felt the great benefit of Great Model Railway challenge program, some thought that model railways on primetime TV was a bad thing. But who helped make that happen? The established manufacturers including Hornby and Gaugemaster I recall from the end credits.

 

One must surely appreciate that the industry has changed around Hornby these last 20 or so years, with the endless march of the internet, the loss of high street stores such as Woolworths, TRU, Beatties, and various department stores. Worse than that, Hornby also finds itself in competition with its own customers, who have built up a good business selling Hornby items over many years and are now using the fruit of those labours against and in competition to Hornby. Put yourself in their shoes just for one moment. Should Hornby just roll over and quietly slip away under palliative care, or should they act to protect themselves?

 

So, Hornby have made a change to their loss-making broken business model left over from at least 20 years ago. This has been decided at the highest levels, almost certainly at board level of their largest stakeholder, Phoenix (essentially their owner I guess) . Hornby have made this change to try and ensure their long-term survival, something as I say that is supported and welcomed on the appropriate pages on this forum. History will decide if it is the right or wrong thing to do, but at least Hornby are having a go. They are trying to ensure that Hornby is around for the next 100 years as well….. and now we castigate them for it.

 

At this point, I shall note that I do not see read protests from the vast majority of the much-cherished local model shops I often read about. I can see one statement from an online trader who I have never heard of, but that is the sum of it. I appreciate that it seems Hatton’s are sadly missing out and I feel for them, but I refer to my earlier point. Class 66, Genesis Coaches, small industrial steam shunter. Apologies if I have missed anything here, but I do not read posts of concern from a long list of actual model shop owners. They seem to be well “represented/supported” by their consumers here on this forum. There certainly is some smoke but I cannot see a multitude of fires burning at this stage.

 

Hornby felt they had to change, or they knew they could disappear. Ok, I have seen the new directors of Hornby renumeration in their accounts and the share options. But apart from that, I can see no hanky panky going on. All directors usually have an exit strategy to enjoy a long and luxurious retirement. All companies will adapt to change in the best way they see fit. Underlying the many pages on this thread is a company trying to do just that. We may not like it, and vote with our feet, but we should at least recognise the necessity and mind set.

 

What a funny lot we are. Many of the complainants here state they have cancelled all their orders and will never buy a model direct from Hornby but will announce on a joyous post they have ordered or brought direct, even paying up front, sometimes years in advance, for a Deltic or such like. Thank goodness for the safety net of Credit Card companies for those who poured money into APT’s or other crowd funding projects from whoever was being hailed as the “messiah of model railways” that particular year.

 

There you are, my first post, hope some like it and some hate it.


Excellent refreshing post. However,please reflect on your comments on protests from model shops by reading the current post from Widnes Model Centre and attached comment which may help clarify your mind .If the online who posted here you profess no knowledge of is Trains4U then the loss is sadly yours. Gareth is one of the best retailers in the UK and has a well stocked and immaculately displayed retail premises in Peterborough and well worth a visit. Yes he also has an online presence too.I’m assuming,rightly or wrongly,that this is the one you refer to. BTW don’t expect all retailers to post on here.A few do and others choose not to so the lack of collective response may not necessarily indicate that all is well or otherwise.You can’t read anything into a silence. 
 

   Thought provoking. Please keep posting.

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4 minutes ago, Kris said:

 

I'm going to stick my neck out here and try to suggest a reason why you might be Tier 2. I suspect that it has nothing to do with your shop (which from the videos on your Facebook page looks great) but I suspect that Hornby consider your website to not be effective. I would expect an effective website to allow purchases as a minimum. I do understand that this involves a lot of extra expense, time and effort and I recognise that not everyone wants to go down this route (everyone needs to make their own choices about it). 

Looking at the criteria from Hornby (below) it is only this area that you appear to fall down on. (Can't comment on the mail order side as I don't know if you do this). 

 

 

 

I very much get your point. We do have a very effective Mail Order and local delivery service which we introduced at the beginning of the pandemic. Thank you for the Bold Lettering, it has helped. Key word repeated here; invariably

These retailers invariably have an effective website

 

As I don't have permission from Hornby to quote and or reproduce any communication from them. Our email is worded differently.

 

 

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15 minutes ago, Widnes Model Centre said:

 

Many thanks for your kind words.

 

Shop looks a bit different from the photo and when you last visited. We now have even more stock and a different layout, not to mention lots of Covid screens.

Tier2.jpg


Clearly the Hornby mystery shopper visited and found a spec of dust somewhere . 
 

To me this just shows the absurdity of the Tier system which is surely breaking down in front of our eyes .

 

Again thanks to Trains4U for clearly explaining the position re position on preorders only becoming clear over May bank holiday . To me this clears Hattons of any blame . In fact they seem to have reacted very quickly to the information . As to Widnes Model Centre I think I’d be inviting your Hornby rep for a wee visit to explain himself . Wish I had a model shop like yours locally . 

 

 

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2 hours ago, Wilkins said:

 

At this point, I shall note that I do not see read protests from the vast majority of the much-cherished local model shops I often read about. I can see one statement from an online trader who I have never heard of, but that is the sum of it. 

A very thoughtful post and a lot of it is pertinent, but I thought I might add some colour around this piece....

 

I know a number of shops, Ive been on the edge of the industry ( I mentioned above my father was a sales rep for over 400 shops for one manufacturer for 30 years). Ive grown up around the hobby, but mostly as a customer like anyone else, but Ive seen a lot of shops and met a lot of folks running them.

 

The reason i’d wager you've not heard the volume of complaints is quite simply, this is their livelihoods.. their mortgages, their families.

 

If they spoke up freely, if they said something read by their rep, a researcher, a marketing guy, even some senior execs  (yes they do), from any of those manufacturers all of whom read this forum, some known to us, some unknown.....

 

it just takes 1 wrong comment, and suddenly they may risk supplies being hard to get..their business at risk.

 

If Widnes is Tier 2, then a lot of shops must be having some worries right now.

 

if you invested your whole life, your savings, your kids education into something, would you risk speaking truth to power on an online forum?

 

 

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1 hour ago, Widnes Model Centre said:

 

 

Having not read all the posts, we are willing to state our position.

 

We are in Tier 2. 

 

We only stock Model Railways, Airfix, Scalextric, Humbrol and Corgi of the Hornby brands.

 

You will be very disappointed if you visit as we have no heritage or museum items on display. If Dan at Derails and ourselves compared ages, Dan would say... ‘you’re the museum pieces’. You have to laugh or we would end up in Tiers.

 

l know many on here have visited our shop. Do you think we are Tier 2 shop?

You are marked down because you post on this forum.

I enjoy your inside comments so that puts me in the black book as well.

:D:o

Bernard

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8 minutes ago, Legend said:

Clearly the Hornby mystery shopper visited and found a spec of dust somewhere . 
 

To me this just shows the absurdity of the Tier system which is surely breaking down in front of our eyes .

 

Or maybe to quote from the original press release:

 

"These retailers invariably have an effective website and mail order service"

 

32 minutes ago, Kris said:

I'm going to stick my neck out here and try to suggest a reason why you might be Tier 2. I suspect that it has nothing to do with your shop (which from the videos on your Facebook page looks great) but I suspect that Hornby consider your website to not be effective.

 

Less "the absurdity of the Tier system which is surely breaking down in front of our eyes" and more that the grading is more complex than you think. I'd expect any discussion over the status of a shop to be in private between the owner and Hornby and based on more than a single photo on the web. Even if it is a single photo that makes me want to visit the shop very much!

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My local model shop was bought by a new owner when the previous owners retired. Hornby refused to supply the new owner with stock as they said he was a new shop. He had to be in business for two years before they would supply him. 

Since he had nothing to sell for two years he went out of business. That means there is no longer a local model shop. So now I have to order online I ordered from hattons now Hornby won't supply them either. 

All I want to do is give Hornby money why make it so difficult. 

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