I wouldn’t go as far as saying something doesn’t smell right. It is definitely a poor business model, though, as you have said.
It’s a judgment call, choosing to lose stock rather than raise prices. It’s bad judgment IMHO, because with a few exceptions, it’s like closing the doors on a retail establishment or extended silence on a radio station. You lose customers that never come back. Once forced to find an alternative, there is often little motivation to re-visit the older choice.
As for electronics parts shortages, it’s not COVID and it’s not new. As a mfr, the choice is what you do about it. Parts obsolesce in a matter of a few years and happen all the time. When’s the last time you could easily buy a TO-3 transistor? For that matter, try finding non-power type TO-220 or TO-92 transistors - or the same through-hole parts of any kind that were readily available 10 years ago.
It could be that the real choice is whether to re-design and they either don’t want to do that or can’t.
NCE’s model is when they get parts, the manufacture the product and ship. They keep little if any inventory of finished product.
NCE is a small fish in a very large pond. The small fish get the leftovers. When the interview was recorded, the “normal” price for common parts meant they would proably be delivered this year. At that time you paid a premium because you and your suppliers were competing with everyone else for a limited supply. There still would be the issue of timely delivery.
I doubt you would be willing to pay 35 - 40% more for a product due to supply issues.
Despite some of the comments here, NCE decoders AND their new PH-Pro system is out in the market at dealers. The new system was mentioned on another forum.
NCE has a great customer service department, both on the phone and for repairs.
Like many manufacturers, parts and more happen to be in short supply. When was the last time you walked into the supermarket and saw a sticker on the shelf in an empty spot stating ‘unavailable due to manufacturer supply issues’? I’ve seen this many times, so let’s put this all into perspective. NCE is not a Walthers or Athearn, they’re a small successful company doing what they do best and that is make DCC systems and components.
Neal
Disclaimer: I have NO AFFILIATION with NCE. Just a very satisfied customer.
I’m not buying this argument that NCE is waiting patiently for its suppliers to catch up on production of parts so that NCE can market its products at more reasonable prices. That may never happen. I get the argument that NCE cannot market its product if parts are unavailable, a supply problem. But, if parts are available but the suppliers are demanding higher prices, if NCE wants to stay in business, it better acquire the parts, albeit at higher prices. Of course, that means charging its customers higher prices, but so be it. Fish or cut bait.
100% Rich. You charge what you have to and hopefully, stay in business and lower your prices as your costs come down. How long can you stay in business selling nothing?
PH Pro only became available last week. The Powercab a few weeks before that. That is MONTHS of this stuff being out of stock. Far as I can tell, some people (not just 1) have been waiting over a year!
There are no separate Pro Cabs, no cables, no separate boosters, no smart boosters, no USB interfaces for things like JRMI, no auto switches, no individual command stations, no switch 8’s, no fused breakers.
I’m not sure who’s shopping where, but this thread made me curious. I had no problem finding NCE products for sale at various online model rr retailers. Decoders to throttles to full systems. [:^)] Maybe it’s just me.
Yep, I love NCE. I have owned my NCE 5 amp PH-Pro wireless system for over 20 years. If the time comes to replace it, I will buy another NCE system, assuming any are available, regardless of price.
No, Mike, it’s not just you. It is true that NCE stuff is out there. But, Don’s original point was that NCE seems to be out of stock on so many items, and that is true as well.
I checked trainworld, whiterose, and tonystrains. Tonystrains is one of the biggest suppliers of NCE and a big proponent of them. As of yesterday the PH Pro was available along with powercab. 3 weeks ago, just the powercab. They don’t even have interface panels or cables.
As of right now TrainWorld has 7 of the regulars and 16 of the radio equipped.
19 of the twelve foot cab buses, 3 fourty foot cab buses, 9 throttle coil cords, enough of the utp panel seven foot cables to not bother listing an amount
11 five amp boosters, 8 ten amp boosters
24 of those
These they appear out of.
Given the volume of NCE products that are in stock combined with other retailers stating the items are expected any day, I wonder if there are multiple issues going on, with supply chain problems being one of them. Maybe things are finally starting to arrive in big enough numbers to make a difference.
I’ll admit I haven’t shopped for their products until today, but I did recently speak with them about a repair need to my system. They got it fixed promptly and throughout the process never made any comment or motion to make me think they are anything but still perfectly viable.
Maybe that’s more of a business model thing of them trying to support their distributors like Tony’s, Trainworld, etc.? Especially if quantities are limited currently.
It’s easier for a manufacturer to sell things to their dealers and let them ship one order at a time than to do it them selves. Some companies like that model; others don’t.
I don’t see how that fits into this conversation. Who said anything about doing it better. We are hobbyists, not competitors.
First, we are told that NCE is reluctant to pay the higher prices that suppliers are demanding. Now, we are being told that NCE has plenty of supply but is shipping all of its product to dealers. Which is it?
Traditionally, NCE has had all of its products in stock and has invited purchases directly from the consumer. If it’s current business model is to sell it products only to its dealers, then why show stuff as out of stock on its website? Just show the product line and tell the shoppers to see their local dealer.
NCE is a buisness, if properly done they will do what is right for the buisness. People on here always want to put their values on other peoples way of doing buisness. As long as they don’t break any laws, it is their buisness, sure if the tik off enough people, it will affect said buisness.
It fits in just fine since there are so many people here complaining about NCE and what is out on their site and what is available at the dealers.
People are ASSUMING that NCE is reluctant to pay higher prices and only shipping to dealers. Which is it? Why does it matter? This is the path NCE chose to do.
If the consumer chooses to ONLY buy direct, then they will have to wait. However, the savvy consumer will look online or check their LHS to see what is available.
This holds true not only in our hobby, but elsewhere in retail.
Maybe you should contact NCE and let them know your thoughts and how they should run their business. Let me know how that works out for you…
I’ve noticed that its very hard to find a RB02, their little wireless box thing. Other things like throttles and systems seem to be on retailers shelves just fine.
Perhaps NCE is sitting on a new wifi based product and is letting the older technology languish.
You know, not unlike the car companies that have this “chip issue” that keeps them from producing gas powered cars while they invest billions in EVs to force the market to go to new technology.