I am seriously considering building a new layout, and the cost is daunting. Even with discounted pricing at on line shops like MB Klein, it is expensive. I cannot help but wonder if there comes a point where a retailer will consider further discounts for “bulk purchases”. Of course, I can call or write to ask, and I eventually plan to do so, but have any of you had this experience and what is the result?
Rich
I tried to get a discount by buying 30 decoders at one time . Nope. All I got was ‘our prices are aldeady discounted’.
I’ve found, that on track, MB Klein has the best pricing, with HONEST freight charges, not padded compared to other online dealers. Unless you have a friend in the business, I don’t think it’s going to happen. Can’t hurt to ask. Worst case scenario, is they say no.
Good luck!
Neal
I haven’t done it with model railroading, but one way to get wholesale pricing is to start a small business in your field of interest. Just be sure to fully check out all the tax implications of doing so.
CG
It never hurts to ask, but having been in a different retail business, you are looking for the customer that is going to spend drop a chunk of change. Buying a bag of ballast, a bottle of paint or a boxcar doesn’t really pay for the lights.
Thanks for the replies so far, guys. All are appreciated.
Let me give you an example of what I define as “bulk”.
I am contemplating a large layout that would require just short of 100 turnouts. While the retail price of a Peco Code 83 Insulfrog is $36.99, it can be purchased from MB Klein for $25.99, a considerable discount from the MSRP. However, the total for 100 turnouts would be $2,600. On that basis, wouldn’t a retailer be interested in granting a further discount?
Rich
If you’re planning on dropping $2,600 on one order fo track i would think that a retailer would work with you on getting a better deal. Perhaps a LHS would do a special order and pass on the savings to help beat MBKlein.
Or, you can just take money out of the golf budget…
Let’s say the retailer did do that for a customer, who then informs his buddies that he got product X for considerably less than the buddies had to pay. That can breed resentment and cause the retailer to lose more that he gained by giving you a special deal.
Most retailers who will give discounts for quantity purchases say so in their advertising or on line pricing guides.
Some manufacturers will sell direct for for some types of quantity special orders. Bowser and Accurail come to mind in the case of custom road names.
You might also check with Crusader Rail Services. They have good prices and fair shipping rates, but don’t currently list Peco products. For that kind of order they may be willing to make a special purchase.
CG
As mentioned, you can always ask, but consider the following info:
The standard hobby discount to a LHS is 30-40% of MSRP. Large dealers or jobbers can get even bigger discounts for volume(like Trainworld or ModelTrainStuff). Usually you can get 25-30% off through Internet or Mail Order dealers).
I have spent the last 3-5 years building a ‘stock pile’ of track for a new layout(300 sticks of flex/65 turnouts/62 Tortoise on hand). Lots of money, but spread over time, and taking advantage train show & eBay sales…
Jim
Give the manufacturers a call, I would think that only a few retailers buy in those quantities.
Mel
Modeling the early to mid 1950s SP in HO scale since 1951
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Bakersfield, California
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Here is where a genuine LHS with an owner behind the counter has it over internet or 800 based sales. Few of those outfits would ever think of giving the person who answers the phone, or who reads the emails (assuming it is not a robot) the authority to negotiate separate deals. They might not even know who to ask since their supervisor likely also lacks the authority. Even at a LHS a person who is just a clerk would not have that authority - for good reason. But at most LHSs the owner is or was the “clerk” (and janitor and book keeper etc etc). If the deal sounds attractive to them they have the authority to say yes, or at least the authority to counter-offer.
Dave Nelson
That’s why I suggested contacting Crusader Rail. While they are an Internet dealer, it seems to be a family run operation. The owner answers the phone.
CG
To me an order of 100 turnouts also means 200 pieces plus of flex track and a lot of cork road bed. This is more than a lot or LHS sell in a quarter yearé or perhaps a year. Getting a dollar a piece profit on this many items should be of interest to a LHS, especially if you have known them a while. You may have to pay in advance.
Ask, the worst answer is no. If you do not ask, what is the answer.
Dave
I am awaiting Sheldon’s response, as he has had real retail experience. An out of state retailer or online store will save sales tax, which in MD is 6%. I know in the firearms world, Cabella’s or Bass Pro Shops (soon to be one in the same) can sell firearms cheaper than the local gun store can buy them from the distributor.
I have no idea if that is the case in MR.
These are all great responses, and I appreciate them all. I am hoping to hear from anyone who may have bought in bulk and was able to negotiate a further discount than the advertised price. Anyone?
Rich
OK, here I am.
First dealers like MB Klein are already buying direct from the manufacturer at the lowest possible price.
You may think your new layout represents a lot of turnouts and flex track, but the last time I was in the actual store at MB Klein, they had ATLAS flex track “stored” out in the sales area - Atlas flex track comes in boxes of 100 pieces that are aprox. 6" x 6" x 36" long. There were two “pallet like” stacks 3’ x 3’ x 5’ tall…or about 12,000 pieces of flex track - 600 scale miles…
I think they are already getting the lowest price from Atlas, and likely selling at the lowest profitable margin. At that level, a business gains nothing by giving away the profit to you because you want a lot at one time - they are still going to sell that whole stack in a reasonable turnaround time with or without your order…
Margins in this business have already been cut more than 10% compared to decades past - there is a bottom line price, places like Kliens and Trainworld are already there…
I usually buy it a box or two at a time and keep some on hand…
As for turnouts, I would not buy PECO, but that’s just me…
Sheldon
I was in the checkout line at Home Depot when the guy ahead had just completed his order. The amount was $23,000 or something. He seemed impressed and asked if he could get a discount on such a large order and the manager kinda chuckled and responded, “No. We get orders like this every day.”
Rich,
Back in the day when we had dozens of LHS in the Detroit area, I remember several which provided club discounts.
It sounds like this is a nice sized order. So, if you find a LHS online which offers club discounts, then start one up [;)].
As you know, clubs come and go…