Pretty smart. Keeps you from putting it in the shopping cart to see the price and then cancelling. :tb-cool: Ben
Anyone else wondering what Kato's reason is for implementing this MAP business? I can't think of any other manufacturer that doesn't allow dealers to advertise discount prices. The Japanese retailers I frequent are still advertising their usual discounts on the latest Kato Japanese releases.
Manufacturers Advertised Price. Also known as Manufacturers Suggested Retail Price. Looks like BLW got around it.
Minimum Advertised Price Retailers can still sell their product at the usual discounts but won't be able to advertise those discounted prices. The are exceptions but that's what you'll see right now. That's all it is, no big deal. Other industries have had it for years. If you shop on-line you'll have to call for a price or the retailer will have to use a 'shopping cart' software that can show you the actual price. Another way it's done is via e-mail i.e. click on a item to request the price and it can be sent to you by e-mail. Everyone can still gorge themselves with more trains then they need at the cheapest possible price. If you actually have budget concerns, it's just a couple extra steps to afford your models, so no worries. No, they didn't. Jason
Not confused about MAP, just why Kato is suddenly doing it, and as far as I can determine, no other N scale 'manufacturers'.
I assure you 99% of manufacturers have a MAP policy. However most of the time, the MAP is probably too close to the dealers price, making it in-profitable to even think of advertising below it.
My very uniformed guess is that Pete at BLW has enough volume to ignore MAPs. Or simply had a longer lead time--yes, that's debatable in today's instant world. Or simply didn't notice, which is more likely. N-scale trains aren't quite like cameras, where MAPs have been enforced for more than four decades.
From what I understand, Kato doesn't like seeing it's product sold at a discount. It gives a discount image to the product. They would rather it be viewed as a premium product deserving of a premium price. In their mind, if it is good enough, it shouldn't need to be discounted. Discounting takes precieved value away from the product. RC manufactures have been doing MAP pricing for quite a while now. When the manufactures noticed shops quit ordering product because they were tired of online sources selling for such a low margin, they realized that they better do something to protect their primary outlet for the product. As a shop, there are still things we don't even bother carrying because the distributor sells it on their website for less than they charge us for the same item. Shops will support the items they can make a profit on. Seeing the recent pricing on the GG-1's, some of the online shops are making less than a 10% margin on the loco. A brick and mortar can't survive on that. No matter what some people think, without brick and mortar shops, the hobby will die a slow death. Most people are are introduced to the hobby at the hobbyshop, especially the ones that stay with it. Kato is making the first attempt to protect the LHS. I expect to see more from other companies soon. My guess would be Athearn will be next with MAP considering Horizon was the first to implement MAP pricing in the RC arena.
BLW has the click for price button that satisfies MAP requirements, by clicking you are formally requesting a price quote, just the same as if you called for a price or walked into a shop and looked at the price tag. Map only stops JoeRayEarl's Discount ExchangeSpot.... from publicly spashing a 99% off sale ads everywhere. It's very similar to a policy of a consumer electronics company I used to work for. they had protected sales territories (pre e-tailer days) for dealers, normally thirty mile radius or two dealers at least three miles apart per 25,000 of population for large cities. sale prices could be advertised as a percent off (30%sale) without the MSRP or an actual dollar amount ( down to the MAP price) but not both. the post E-tail world just makes it seem more complicated than it really is.
Manufacturers have tried for decades to control discounting but the volume distributors who are a huge portion of thier bread and butter have too much leverage. Free enterprise laws don't help matters much either. It seems the LHS breaks even on more expensive items like engines but makes up for it on nickle and dime items that aren't worth fussing with on the internet. When building kits or scenicing a layout, the nickle and dime stuff people routinely pick up at an LHS adds up fast and totals out to what engines cost if not more.