ModelZone seeking Administration

[84A]

No, the stores which sell out their stock to a level for which it is uneconomic to retain staff, are the ones which go first.  The better salesmen hasten their own demise.

 

Surely that gives no incentive for the employees? On that basis - if I was employed there, i'd keep replacing the discount stickers every now and then in the hope that people would just assume the price was RRP and not bother buying. Sounds vindictive, but if theres a job there for an extra couple of weeks by simply retaining stock then why not?

[Obi-Jiff Kenobi]

By the sound of it, the employees know they have no incentive anyway, so it would probably make little difference.

[andyman7]

The SR 2BIL R3161 is still readily obtainable at a slight reduction on RRP (Kernow list it on their website)

By readily available I mean generally at retailers of Hornby stock - I know Kernow have SR 2-BILs but a majority of Hornby stockists don't. The original point was that, if, out of 50-odd stores, Hornby recover maybe 10 of an item, that hardly represents the amount you need for a big sell off. However, for products where maybe 500 examples are recovered, then maybe that item might be the subject of a bargain bulk purchase by a box shifter or similar.

[The Stationmaster]

An interesting report in today's 'Daily Telegraph'  -

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10208880/ModelZone-collapse-leaves-debts-of-11m.html

 

 

However either various previous reports are wrong (which I doubt) or the article is not well researched as Amerang has already been sold-off and there is a seemingly total denial of any interest in the retail arm of the business - I wonder if that is true?

 

Hornby's potential loss of course does not relate to model railways or Scalextric (unless the report is again inaccurate?) but to othetr items such the Humbrol range and Airfix kits etc.

[pete_mcfarlane]

Presumably Hornby's £200k is for (quite a lot of) stock that has been supplied on credit and not yet paid for?

[The Stationmaster]

Presumably Hornby's £200k is for (quite a lot of) stock that has been supplied on credit and not yet paid for?

Presumably - but clearly not for a vast amount of stuff in the total picture and obviously excluding model railways and Scalextric of course.  (Small beer when you consider then Hornby did £9.23 million's worth of concession outlet sales in the financial year just ended)

['CHARD]

The staff in the Birmingham store told me they will be one of the last to close and they think that they may have about three weeks left before it will close.

 

Another opportunity for a last hurrah.  Mind you I expect the stuff drifting in from ex-shops will be fairly thin pickings.

[The Stationmaster]

Another opportunity for a last hurrah.  Mind you I expect the stuff drifting in from ex-shops will be fairly thin pickings.

It depends - if you've got stuff from places where there aren't some many 'modellers' that might mean that stuff like plasticard (Modelzone style), Evergreen strip, and K&S metals could well be in reasonable quantities plus of course various lineside type kits from Ratio etc.

[Ravenser]

It does look as if the administrators are playing fairly hard-ball in rejecting offers for part of the chain - presumably they feel by doing this they can force an offer for the whole business, and therefore that the underlying business is - as companies in administration go - relatively viable??

 

Of course as time passes and the least viable stores are closed, the gap between an offer for the whole chain and an offer for part of the chain will narrow....

[andymac-2008]

Another opportunity for a last hurrah.  Mind you I expect the stuff drifting in from ex-shops will be fairly thin pickings.

You will be quite surprised I picked up a mini drill that has not been in stock for weeks. I found that if they don't have it today they may have it tomorrow so Its always worth a look if your passing.  

[jonhall]

I wonder if Hornby knew that MZ were in trouble, and proposed the 'concession' model so that they were sure to get their stock back???

 

Jon

[roundhouse]

Also I wonder where else Hornby are now going to be able to have such a large outlet to the general public for their products in future.

Ian

[andyman7]

Also I wonder where else Hornby are now going to be able to have such a large outlet to the general public for their products in future.

Ian

I think the concession model is their preferred solution - for example, in central London both Hamleys and Harrods are Hornby concessions ensuring that the range is present in those locations. It is more attractive to the retailer who doesn't have to tie up cash in high value (and relatively slow selling/seasonal) items.   

[Jonboy]

It would seem to me that John Lewis would be a good match for Hornby in terms of price point etc.

[meld]

I wonder if Hornby knew that MZ were in trouble, and proposed the 'concession' model so that they were sure to get their stock back???

 

Jon

 

The Hornby "Concession Stock" has been part of MZ for a good few years now and IIRC was introduced under David Mordicai's ownership anyway.

 

Hornby bargins of the past have always been after negotiation with Hornby and were the same Items that other retailers were able to access at the time.

 

The "Concession" concept is that MZ 'Charged' Hornby for the Agreed space in each store a 'Rent' and Hornby used the MZ Staff to sell the items rather than employing someone to do it themselves, ( as seen on the Beauty Products counters in large department stores ).

 

Mike

[petethemole]

"Never knowingly undersold". They would have to lower their prices in any location where there was a dealer selling Hornby at discount OR do what they appear to do with some product lines and only sell items or variants that were either exclusive to them, or exclusive to the concession dealers in general. Which appears to be where Hornby have been heading with some models.

 

Pete

[C&WR]

I think the concession model is their preferred solution - for example, in central London both Hamleys and Harrods are Hornby concessions ensuring that the range is present in those locations. It is more attractive to the retailer who doesn't have to tie up cash in high value (and relatively slow selling/seasonal) items.   

 

I dread to think what they would have charged for Hornby, then. Twice RRP?

 

The only downside to being engaged to an expat is that whenever her family come to visit they have to take the nippers to Hamleys & the grown ups to Horrids!

[MarkAustin]

Just popped into the New Oxford Street Branch. Much as reported above. Discounts on kits etc 20%; on tools, paints etc 50%. Well stocked on the former, but the latter getting a bit thin. A pile of boxes waiting to be opened on the floor, so this supports the idea they're either cascading stocks from closing shops or emptying the warehouse

[melmerby]

"Never knowingly undersold". They would have to lower their prices in any location where there was a dealer selling Hornby at discount OR do what they appear to do with some product lines and only sell items or variants that were either exclusive to them, or exclusive to the concession dealers in general. Which appears to be where Hornby have been heading with some models.

 

Pete

They do reduce prices where there is discounted stocks locally, often below what the others are charging.

Not just for "exclusives" either

 

I have had several items from JLP where they were well under the competition for identical items.

e.g. a Sony TV and a Vax cleaner, both available elsewhere at higher prices, the cleaner was £100 below Argos!

 

IMHO Hornby should have allowed MZ some leeway with prices. e.g.In Brum both MZ and Ian Allan have had the GWR 8 coupled tanks, MZ at full RRP, Ian Allan at a reasonable discount. Why buy from MZ? In my book that is lost sales for MZ.

 

All this unsold Hornby stuff is going nowhere, except back to Hornby. A discount could have got it moving.

 

Keith

[Miss Prism]

All this unsold Hornby stuff is going nowhere, except back to Hornby.

Quite so. And unless a new 'Modelzone' arises from the ashes on a few of the existing MZ locations, that is where most of it will remain, pending a Hornby review of its pricing strategies.

 

 

[andyman7]

I dread to think what they would have charged for Hornby, then. Twice RRP?

 

The only downside to being engaged to an expat is that whenever her family come to visit they have to take the nippers to Hamleys & the grown ups to Horrids!

Hamleys and Harrods charge list prices and normally have one or two markdown items, often at prices better than Hattons. If you go into Hamleys now, they are selling the Northern Pacer at £50 (£80 at Hattons). Very much as Keith above notes with concessions in general.

 

MZ had a price match policy so, for example, Brum would match the Ian Allan store on price.

 

I'm not saying that Hornby wouldn't benefit from a review of pricing for certain items, but I do find the assumption that because a particular person doesn't want an item at a certain price, no-one does, or that somehow the fact that Hornby stuff isn't being stripped from the shelves makes it unsellable. To my mind the issues are much more specific, i.e. 1st class coaches with no matching 3rds because they are sold out everywhere; or HST power cars without matching coaches. That frankly doesn't help anyone, whether its MZ or your local model shop. But when the Railroad Mk1s come out, they will be £15 plus £4 postage from Hattons, or £17.99 from Harrods, so why would it be so barmy to buy one from the latter?  

[orcadian]

Hamleys and Harrods charge list prices and normally have one or two markdown items, often at prices better than Hattons. If you go into Hamleys now, they are selling the Northern Pacer at £50 (£80 at Hattons). Very much as Keith above notes with concessions in general.

 

 But when the Railroad Mk1s come out, they will be £15 plus £4 postage from Hattons, or £17.99 from Harrods, so why would it be so barmy to buy one from the latter?  

Fine, if you want to buy them one at a time! But four from Hattons will be £64, from Hamleys £71.96 at these prices, with the gap only widening as the number being bought increases.  Also, I wonder how many (how few) orders from people who know of retailers like Hattons are for a single item?  Yes, I've made single-item purchases from Hattons, but in each case the item has been a loco, and so the saving has always easily exceeded the delivery charge!

 

Richard

[C&WR]

Sorry' just having a joke about Hamleys/Horrids.  However as I would have to take the train to get to London to get to either Hattons would indeed be cheaper.

 

That, however, is all academic.  Apart from being very profligate and buying a Class 220 on special from Hattons for £70, some Dapol FEA Spine Wagons & collecting the odd private owner wagon from my local area & brewery wagon where they had significance all my stock shopping these days is second hand.  That's a bit like when I first started out, except these days we have eBay rather than the "Under A Fiver" column in the local rag!

[andyman7]

Fine, if you want to buy them one at a time! But four from Hattons will be £64, from Hamleys £71.96 at these prices, with the gap only widening as the number being bought increases.  Also, I wonder how many (how few) orders from people who know of retailers like Hattons are for a single item?  Yes, I've made single-item purchases from Hattons, but in each case the item has been a loco, and so the saving has always easily exceeded the delivery charge!

 

Richard

I'm not suggesting that Hattons or wherever should be avoided, just that the alternatives shouldn't be dismissed, people's needs differ and one person might buy 10 coaches but times are hard and there are many that can only afford one or two at a time. I happen to live and work in London so using local outlets makes sense for me in the right circumstances - what you do depends on where you live and your circumstances - but I want to make people aware that sometimes opportunity exists where people assume it doesn't.

 

A continuous theme of this thread has been that MZ didn't succeed because they charged full price yet I have bought so many cheap items from them over the years - I'm just stating an honest point of view! Clearly their business model isn't/hasn't worked but I will miss them....

[C&WR]

A continuous theme of this thread has been that MZ didn't succeed because they charged full price yet I have bought so many cheap items from them over the years - I'm just stating an honest point of view! Clearly their business model isn't/hasn't worked but I will miss them....

 

My thoughts entirely.  I didn't spend a huge amount in ModelZone, partly because of restricted finances, but it was my go-to place for scenics & kits, & I almost always ended up with an impulse buy.  

 

I'm also saddened that just as life became stable enough to have a pop at model kit making (ans as the boy becomes old enough for his first steps) a good supplier of kits closes down.  Yes a lot of local toy shops have a basic range of Airfix stuff, but ModelZone had all the exciting Tamiya & Hasegawa stuff!