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July 2021 Price Increases


Trains4U
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25 minutes ago, Trains4U said:

We have just had notification from Hornby that the prices across all their ranges, with the exception of Humbrol, are to be increased from July 31st

In summary, Hornby state that there have been massive availability problems with shipping capacity and raw materials which have resulted in a significant inflation of costs.   Whilst Hornby have absorbed these for the last 6 months, it is no longer sustainable and clearly not a short term issue.

They have therefore had to make the difficult decision to increase their prices to reflect these additional costs.

All items shipped to retailers  from 31st July will be subject to a price increase of approximately 10%. 


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As a retailer, a 10% increase is not something that we could afford to absorb, therefore all Hornby items delivered after 31st July will have their prices adjusted accordingly.   In addition to this,  maintaining existing pricing on pre-ordered items would breach our terms with regard to the minimum discounting period for new items.   

You may wish to contact your retailer directly to see if this impacts any pre-orders you may have with them.

New price lists have not yet been issued.  Hopefully the impact will be clearer once these arrive.

Thanks for the clarity, a shame but not unsurprising. So I’m guessing that all the 2021 stuff will now just be the full rrp of the original price at shops? 

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My problem is that I have pre-ordered two remaining LSWR 4 wheel coaches R40107 1st class and R40110 brake 3rd at a 10% discount from a well known retailer.  These are essential items for me as I am modelling the Swanage Railway on the LSWR and I have already got the other two coaches.

 

These two coaches have been in stock at Hornby since 1 July at the full price of £35.99 but are still not available at the retailers. If Hornby do not deliver them to the retailers before 31 July it looks like I will have to pay the full price anyway.  If Hornby sell out of them before they get to the retailers I might not get them at all.

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I wonder if this affects pre-orders with Hornby on their own online store 

 

Not good news Hornby are getting too expensive for me and I will have to cancel some of my orders and will not be able to buy much it the future 

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I am pretty sure that all prices on anything coming from outside UK will be affected by the cost of shipping gone from 2700 USD last year to approx 14000USD a container and this changes everyday. That then coupled with spiralling UK cost of fuel etc we can expect inflation soaring during the next FY 

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Posted (edited)
55 minutes ago, younGGuns7 said:

I am pretty sure that all prices on anything coming from outside UK will be affected by the cost of shipping gone from 2700 USD last year to approx 14000USD a container and this changes everyday. That then coupled with spiralling UK cost of fuel etc we can expect inflation soaring during the next FY 

I really don't think this is solely confined to the UK market.  It probably applies to exported goods worldwide unless I'm missing something?

And as for inflation, that too is prevalent in many economies other than our own domestic market !

Edited by Black 5 Bear
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3 hours ago, Class 158 productions said:

Thanks for the clarity, a shame but not unsurprising. So I’m guessing that all the 2021 stuff will now just be the full rrp of the original price at shops? 

Erm, it will be the equivalent of full RRP at the old (current) prices but should still be 10% off the new price if that's what the dealer was offering. Container shipping costs have shot up as Covid and other issues have played havoc with global supply chains. 

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I have quite a lot of stuff on order with Hornby but I really don't like buying something for a price and then it going up so tend to cancel on principle. If you can't commit to a price don't sell it. I know Hornby will say the dealers sold it not us (like when they had a reshuffle on allocations/tier system) but they can't claim to not know how it works.

 

I will have some of the things I have on order, simply because they are "must haves" but I will be cancelling the rest and wait for them to be discounted or do without. Unfortunately that will make no odds to Hornby, it will be the dealers that will lose out as it will be out of their margin not Hornbys but I only have so much money.

 

Note this is exactly what I did with the Bachmann 150, I might miss out but I will live but just saying it is not limited to Hornby.

 

Price rises, fair dos, but when you have already announced prices for stuff, especially things that have been persistently late like the LNER Azuma from the 2019 range I should have had on my layout 18+ months ago had they delivered it on time it just seems like a kick in the you know whats.

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Not surprised, supply chains still severely distressed, commodity prices way up, which is driving up components, shipping as per someone above is much more expensive than it was. For example, here's copper 3yr (from marketwatch):

image.png.37b3b9122220490d8ba0eb088b93d7db.png

Drops when the pandemic hits, then everyone tries to catch up, demand is up, prices over twice what they were pre-pandemic. 

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21 minutes ago, TomScrut said:

I have quite a lot of stuff on order with Hornby but I really don't like buying something for a price and then it going up so tend to cancel on principle. If you can't commit to a price don't sell it. I know Hornby will say the dealers sold it not us (like when they had a reshuffle on allocations/tier system) but they can't claim to not know how it works.

 

Err, with inflation pressing and a lot of price volatility it's not really practicable to insist on sticking to prices for something ordered 18 months ago. Unless, that is, you predicted the pandemic....

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Posted (edited)
5 minutes ago, andyman7 said:

Err, with inflation pressing and a lot of price volatility it's not really practicable to insist on sticking to prices for something ordered 18 months ago. Unless, that is, you predicted the pandemic....

 

Err, if stuff had turned up when it should have (i.e. when they originally said so, things announced in 2019 with supposed release dates before COVID) then COVID, let alone all this, would be irrelevant.

 

The thing is, if the runs stay the same it's just the dealers they are screwing (assuming the dealers buy it all) as they are the ones that may have to discount to get rid.

 

If we had all had 10% increases in disposable income in the last year then it wouldn't be disproportionate. As it stands I expect a lot of people will be reducing what they buy.

Edited by TomScrut
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3 minutes ago, TomScrut said:

 

Err, if stuff had turned up when it should have (i.e. when they originally said so, things announced in 2019 with supposed release dates before COVID) then COVID, let alone all this, would be irrelevant.

 

Life happens. Life ain't perfect. 

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Posted (edited)
8 minutes ago, AY Mod said:

 

Life happens. Life ain't perfect. 

 

Definitely not. I just wonder if the potential loss in sales is worth it.

 

I just don't see how me (assuming I am average and so others will do the same) cancelling £500 or more of stuff they are probably committed to making is going to do them a lot of favours.

Edited by TomScrut
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If you don't buy them someone else probably will and they'll hopefully make some profit instead of holding their price and selling them to you for a loss.

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Posted (edited)
1 minute ago, AY Mod said:

If you don't buy them someone else probably will and they'll hopefully make some profit instead of holding their price and selling them to you for a loss.

 

Let's hope they do. What will probably happen is dealers buy them and then have to discount them more than they'd like.

Edited by TomScrut
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2 minutes ago, TomScrut said:

 

Let's hope they do. What will probably happen is dealers buy them and then have to discount them more than they'd like.

 

You might want to read (or re-read) the first post which is from a dealer and explains what they will have to do.

 

Darius

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1 minute ago, TomScrut said:

 

Definitely not. I just wonder if the potential loss in sales is worth it.

 

I just don't see how me (assuming I am average and so others will do the same) cancelling £500 or more of stuff they are probably committed to making is going to do them a lot of favours.

Personally speaking, The only "Must Haves" for me are the two Hornby Dublo Merchant Navies which are limited editions. That is if I'm lucky enough to actually receive one or both of them.

The rest of my Pre-orders I can realistically do without and will probably cancel.

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1 minute ago, AY Mod said:

If you don't buy them someone else probably will and they'll hopefully make some profit instead of holding their price and selling them to you for a loss.

At the moment you are absolutely right, unfortunately long term it can have very negative effects. Many a firm has lost its market by excessively raising its prices. At the moment I can see that the cost of Shipping has increased ten fold, but on the other hand that should be factored in when deciding to put all your production in China. In the old days preordering an item fixed the price, in the 70's it didn't but then that changed when people started to cancel orders. 

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For those fortunate enough to have sufficient items for an operational layout, this news, although not totally unexpected, is most unwelcome.

For those contemplating their first start in a hobby which, by its very nature, can be initially quite expensive, consideration might be given to directing leisure finances elsewhere.

 

 

 

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3 minutes ago, Darius43 said:

 

You might want to read (or re-read) the first post which is from a dealer and explains what they will have to do.

 

Darius

 

Not sure what you mean. I wouldn't expect them to absorb the increase on a brand new release. In fact I aren't sure Hornby let them do more than 10% on release anyway.

 

The point is that IF people react the same way as I will then there will be stuff sat on somebody's shelves and so somebody will probably discount it sooner or later. Probably dealers.

 

3 minutes ago, Black 5 Bear said:

Personally speaking, The only "Must Haves" for me are the two Hornby Dublo Merchant Navies which are limited editions. That is if I'm lucky enough to actually receive one or both of them.

The rest of my Pre-orders I can realistically do without and will probably cancel.

 

2 Azumas are my only ones. Maybe a 60.

 

Probably cancelling a 6 coach 91/MK4 rake, 1/2 60s, 2MT and a P2.

 

I'll take my chances at getting some of that for what I want to pay for it.

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Just now, AY Mod said:

Oh boy, this is going to be hard work.

Anything involving a price rise generally gets people upset. Ten percent is quite a large rise so I can see why people get upset, on top of a lot of people not getting their preorders. Fortunately for Hornby there is little competition, but just look at our hobby, most of the people are 50 plus so if they are not careful they could kill it. Fortunately for me I am at the point where I just buy a loco when the price is right, which surprisingly happens quite a lot. Obviously those really desirable items get sold out quite quickly, but as Hornby has demonstrated so well, preordering them doesn't mean you will get it anyway.

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I think if I remember one of the advantages of preordering off Hornby was that they honored the original price. I don't know if they will stick to that, but if they do then the preorder price off Hornby will be the same as the discounted price off a Retailer.

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10 minutes ago, cbrooks122000 said:

Anything involving a price rise generally gets people upset. Ten percent is quite a large rise so I can see why people get upset, on top of a lot of people not getting their preorders. Fortunately for Hornby there is little competition, but just look at our hobby, most of the people are 50 plus so if they are not careful they could kill it. Fortunately for me I am at the point where I just buy a loco when the price is right, which surprisingly happens quite a lot. Obviously those really desirable items get sold out quite quickly, but as Hornby has demonstrated so well, preordering them doesn't mean you will get it anyway.

Hmmm, well if enough people cancel their pre-orders that should solve the other problem. The supply chain is tight and I suspect if you really want something and can afford it (granted not everyone is in that position) you'd be better off buying it than holding out and getting upset when ebay scalpers add another 10% (or 20%)

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