Market Forces

[Ian Hargrave]

Has anyone noticed the increased activities of the retail trade on e-bay recently ? Rails seem to be the main protagonist but there are others. Asking prices ,in most cases,are inflated.....way beyond the value of the stock when new.Yes,I know that e-bay charges have to be taken into account but there is surely a sensible limit to asking prices. We are only too aware that the retail trade is suffering both from the current economic climate and from the almost complete absence of new models onto the marketplace......witness the demise of Modelzone and Gareth's Trains 4U downsizing.....graphically explained on this forum. Turnover is vital in to any retailer and I ,for one ,can understand that. However,a cautionary note.....consider the word 'turnover' here. Ask.....who else MIGHT just be being 'turned over' ?

 

 Are we now,then ,in the absence of new stock ,being pushed into an 'Antiques Roadshow' situation ?  For example...the currently desirable Hornby Rebuilt Bulleid light pacifics ? We can appreciate the cost of rates,business tax, staffing costs etc.but is this seeming ambivalence between retail and online trading on the one hand and ,to put it crudely,'horse-trading' on the other,doing anybody any good ?

 

 We are now,it seems in the situation where used models are advertised at a higher cost than new stock.  Of course it is imperative that the retail trade flourishes...for all of us.... and survival tactics are necessary. I am not questioning that. Many of you will,of course quote the laws of supply and demand. 

 

 Is there ,perhaps, a better way? Would be interested in an airing of your views.

 

[Kenton]

If it is over priced and available at better value elsewhere then the buyer with any sense will buy it from elsewhere.

 

Ebay are certainly changing their business model to favour traders rather than individuals as that usually means less hassle and easier compliance and management.

 

As for Rails, I have bought a few items from them and not felt over charged and more than happy with the service. From a buyer's perspective there is still something more reassuring about a trader. More confidence that you are actually going to get the item purchased. But I still avoid BIN sales and the majority of those that start with a false reserve way over any realistic start price. I usually buy on the premise that another one will be on offer soon - and invariably it is.

 

As for internet vs retail, I am afraid I have long switched to ebay as a big supermarket available from my desk without the costs of travel and wasted time. My nearest model shop is over an hour away and although good I visit less and less these days. Ebay/amazon/etc are the supermarkets / shopping malls of the internet and it costs little/nothing to go and search through their stock rooms.

[Bernard Lamb]

Bought two items on ebay recently and looked at another today.

All from established bricks and mortar retailers and all items not currently available from the main hobby shops.

Prices a little higher than from the box shifters but certainly lower than from most retail outlets.

Of course you have to do your homework and find out the going rate but ebay seems to me to still offer good deals.

Bernard

[hayfield]

My interests lie in older stock either kit or kit built. Prices have increased I think all round even on bidding, but that may just be more people using this method.

 

Sadly most of my purchasing is on-line as I have no model train shops near by that are easy to get to, shows is where I can still buy items face to face and when I visit my daughter in Chelmsford.

 

Yes Ebay has a lot more retailers providing new stock and I think that's a good thing. Also as a buyer you get a little extra protection buying from Ebay 

[The Stationmaster]

I have two model shops which I regard as 'local' although they are not exactly in that category geographically and I buy from both sometimes using mail order from one and always personal visit at the other.  One of them has recently properly organised its secondhand dept allowing a much larger range of its stock to be excellently displayed and at least at weekends there always seems to be plenty of business there.  Both provide excellent, friendly service and advice so remain fully worth supporting even if it can mean sitting for a long time on funds I've set aside for pre-orders - I think it's worth it to help keep them in business.

 

The big problem many retailers face is one of cashflow when the r-t-r trade is flat due to poor delivery rates for new products - something I've highlighted numerous times previously.  So if a bit of buying of whatever helps them then I'm happy to do so if my personal funds allow and quite honestly money sitting in the bank is depreciating so it's not worth putting it there.

[robmcg]

Has anyone noticed the increased activities of the retail trade on e-bay recently ? Rails seem to be the main protagonist but there are others. Asking prices ,in most cases,are inflated.....way beyond the value of the stock when new.Yes,I know that e-bay charges have to be taken into account but there is surely a sensible limit to asking prices. We are only too aware that the retail trade is suffering both from the current economic climate and from the almost complete absence of new models onto the marketplace......witness the demise of Modelzone and Gareth's Trains 4U downsizing.....graphically explained on this forum. Turnover is vital in to any retailer and I ,for one ,can understand that. However,a cautionary note.....consider the word 'turnover' here. Ask.....who else MIGHT just be being 'turned over' ?

 

 Are we now,then ,in the absence of new stock ,being pushed into an 'Antiques Roadshow' situation ?  For example...the currently desirable Hornby Rebuilt Bulleid light pacifics ?

 

... abridged ...

 

 Is there ,perhaps, a better way? Would be interested in an airing of your views.

 

I keep an eye on Ebay and have seen a fair bit of Rails activity, but without looking closely thought much of it was second hand.

 

My feeling is that there is a fair bit of energy in the s/h market, presumably because of the dearth of new models and probably fewer retail outlets.

 

I also think that this is a natural effect of trading dynamics, web-driven sales overwhelming brick and mortar, as in most high streets.

 

Rob

[gwrrob]

Maybe slightly OT I see there was an ebay and Argos tie in announced in the press today.I think they are trying to rival Amazon.A click and collect service letting ebay purchasers pick up from their local Argos.I suppose it works if your'e not home to collect parcels.

[hayfield]

I have two model shops which I regard as 'local' although they are not exactly in that category geographically and I buy from both sometimes using mail order from one and always personal visit at the other.  One of them has recently properly organised its secondhand dept allowing a much larger range of its stock to be excellently displayed and at least at weekends there always seems to be plenty of business there.  Both provide excellent, friendly service and advice so remain fully worth supporting even if it can mean sitting for a long time on funds I've set aside for pre-orders - I think it's worth it to help keep them in business.

 

The big problem many retailers face is one of cashflow when the r-t-r trade is flat due to poor delivery rates for new products - something I've highlighted numerous times previously.  So if a bit of buying of whatever helps them then I'm happy to do so if my personal funds allow and quite honestly money sitting in the bank is depreciating so it's not worth putting it there.

 

 

Retailers had had to adapt over the years to changes in the retail trade, like it or not on-line is going to become even bigger in years to come. Ebay and Amazon both offer an easy to use and cost effective on-line facility to traders. This is the future of retailing, just look at the effort the supermarkets are putting it to build up their business.

[pH]

I'm looking at exactly the opposite situation to that described in the OP. Ian talked about high prices for secondhand items. I'm seeing low and falling prices for a new item I'm interested in, and wondering how low can they go, and at what point do I decide the price is low enough and buy.

 

If I'm sure I want an item, I'll pre-order from my local shop. However, the pre-production artwork on this one didn't look great, so I thought I'd waIt and see. It was released at the beginning of March. It actually looks really good, and it turned out to be to a higher spec than earlier models in the range. So I'd like one.

 

First one I saw on Ebay started at less than half the manufacturer's recommended price and went for $1 above that! There are now 'buy it nows' for less than that, and auctions starting at less than a third of MRP. I know, I should just buy one and be thankful but with what's happened so far, just how low could the price go?

[Stevelewis]

Unusually  for  me    have  bought  some  used  items  recently from  both  Rails  &  Hattons,  Items  which  are  currently  avaialable,  Those  from  RAILS  were offered on EBAY  as  Buy it now/Best offer items,  I made my offers  all  of  which were  accepted and  the items  cosst  me  around 40% less than current discount  prices.

 

Items  from HATTONS described  as  LIKE NEW  were  just  that!!   I saaved  £45 on a £125 item  and  £1.50  on a £6.00  item, both items appeared to be totally unused and not even removed from packaging

[hayfield]

Not necessarily with Ebay items, but if I see something I like at a good price,  can use it and have the funds in my modelling kitty I buy it. As often as not when I go back its gone.

 

There must be a rock bottom platform which items cannot be sold at if new and a 40% discount sounds very good, often these discount periods go as quickly as they come