Pricing Rant...........

[HiString]

Price gouging (kind of)......but it's not illegal

 

 

After the settling in period with our Scalie V8 set, I decided that over time as spare dollars allowed, I would purchase 2 or 3 cars from certain “categoriesâ€. One of these is the GT40 and whilst I could buy 3 individual cars cheaper, the Scalie ’66 Le mans 3 car set had caught my eye as there is a set at the store where I purchased our Mountain Mayhem.

 

A few months ago I made a tentative enquiry and was quoted approx., $230……....at this time, one or two other retailers still had them listed (online) at approx., $210……….but knowing the pricing habits of both local Scalie retailers the difference wasn’t surprising. Last week, with dollars now available, I returned to the store with the intention of buying the GT40 set. Without thinking of mentioning his previous “quote†I asked for a price and casually mentioned having seen the sets on the www listed in the low(ish) $200 range…..after some mumblings about how they were virtually unobtainable and having gone out the back and apparently called Armchair, the guy returned and said that he would have to ask at least $300 for the set . I attempted to politely leave the store before I said something I may have regretted .

 

Subsequent inquiries revealed that the importers don’t attempt to regulate the retail prices, leaving that up to the stores themselves. There are no Gov’t requirements saying that importer/distributors have to suggest either a RRP or a maximum retail price, it is totally arbitory………..so, while the local guy may be legally entitled to ask whatever he wants, it was suggested by one Gov’t dept., that his actions are ethically and/or morally questionable. One thing I do know is, that the only time I’m likely to walk through his doors in the future will be to tell him that I purchased the set elsewhere………for $210……….a couple of phone calls today confirmed price and availability.

 

Apologies for the waffle but I've been somewhat pissed orf about this.

 

[slittlehales]

Hi There!

 

I can understand where you are coming from with this, but... I have to side with the retailer. If they happen to have a "Limited Edition" (I use the term loosely) available that is unavailable elsewhere then it sort becomes a sellers market, to my point just look at what cars (even those still readily available) are going for on Ebay. Its my belief that the buyer has all of the responsibility here, I mean we (consumers) generally screw the price down on virtually anything, I don't really have a problem with retailers making money where they can, otherwise they would not be around.. I for one am generally happy paying a little over the odds at a local store and try to limit my Ebay purchases to things that are not available near me (or are to cheap to pass up, can't help myself!) or are older out of stock/production. But that being said I can sympathise with you! And I hope you enjoy your GT40 set, they are lovely!

 

Cheers,

 

Steve

[dangermouse]

- a little odd that he doesn't put a price on things - I usually don't bother with things with out a price sticker - I figure I can't afford them - I guess he can put whatever price he wants and if no body buys he goes out of business - not nice that

 

It is a hard set to come by - I am kicking myself as I missed one at Christmas on eBay that went for $130 - I have seen them selling OS for $165 - $180 + postage - and did see them somewhere for $210 here in OZ - but by that stage I already had all 3 cars in the set - the GT40s have become quite collectable - I have seen single cars (#3 #2 #6 etc) going from $60 to $230

(myself I am a little at odds with slot cars being collectables - I wonder if scalextric re-released all there GT40s again would they sell out again...I think they would...) I also figure that in a few years there will be a whole heap of new slot car enthusiasts who would like to buy the cars - so to me it makes sense to keep making them - after all scalextric gets nothing if one sells on eBay for $200 :(

 

cheers

DM

[HiString]

I have no problem with a retailer making a (fair) profit, but when you consider that 2 years ago, these sets were listed on AR's site at $169 (and even if that was a "special" price they definitely wouldn't have been selling at a loss), one has to wonder at what point making a (fair) profit becomes blatant profiteering (ie: price gouging). I had been quite prepared to pay in the low $200's but having in the past heard this retailer's attempts to justify his overall higher prices, his decision to up the price to $300 and the (ill-informed) drivel he spouted as justification was the last straw. At the end of the day, I want cars to "race", consequently I've decided not to pursue the Le Mans GT40 set, I'll leave them for those who have more money to burn than me.

 

[Badbilly]

I have had very similar dealings with a certain shop next to westfields myself i will assume its the same place. Sorry if im wrong...

The shop in hunter street has price matched shops in sydney in the past and have rung up to verify the price and availability in front of me and with no dramas.. though i not bought a slot car off them for over a year.

Although i too dont mind people making a profit there is NO need for the bull and contempt this place seems to have for sloters.

[dangermouse]

with a bit of luck and persistence you will be able to pick up GT40 on that online auction site....for around $70 each you may have to look to the UK though - if you want a nice looking GT40 for racing checkout slotcity in the UK they have a ltd edition one....that looks good - it is a MK1

Edited August 12, 2008 by dangermouse

[HiString]

Badbilly,

 

Yes mate, that's the shop :(. I'm torn between 1) dropping in to tell him why he's lost any future business from me and 2) just leaving him alone to wallow in his ignorance. I drop into FLH when I'm in town occasionally but between the way half the cars are just dumped on top of each other in the display case and the apparent lack of product knowledge from the guys there (if you're not asking about RC cars they seem disinterested), I've limited my purchases to track sections. In the last couple of days I've spoken to retailers in Sydney, Brisbane and Melbourne and the advice and friendly manner of these guys has left the local people for dead.

 

DM,

 

Thanks for the tip about Slotcity, I'll look them up and I am watching the auctions .

 

[kalbfellp]

These sets did not sell when they were released,some retailers broke the sets up to try and sell the stock, I picked my 3 car set up for under $100.00, and after 2 years have made a nice profit. The retailer have probably had them is stock for longer,!

 

Phil

[Badbilly]

HiString,

 

I doubt he would even care, FWIW i wouldnt bother... but gee it can feel good sticking it up them after ya have spent heaps eleswhere

 

Yeah the boys at FLH dont care about slotcars... but sometimes handy if they have a car in stock that is on special in sydney and cant be bothered driving down there to get it.

 

slot car shops are the best to deal with and most of the ones that have there own track will give u a bit of track time when u buy a new car off them (if you ask nicely) so that makes it worth while to make the trip for me :(

Edited August 12, 2008 by Badbilly

[SlotsNZ]

I know it feels unfair when a retailer charges above original retail for something he has sat - [if indeed he did have it in stock, which seems unclear from yuor post] - on that has become collectable, and he CAN probably get more for it from someone prepared to pay more.......but.....would you personally offer to pay him full retail for the old stock he sat of for 2 year that he is specialling off to recover the lost money and opportunity cost of having it there....?

 

"Hi, that car you have reduced from $69 to $45, I'll take it at $69 thanks, I really want it....."

 

or would that just be "tough on you mr retailer" it breaks both ways......

 

It's quite hard being in a specialised business especially with the raft of pricing information we have, net buying etc., and running a business in such a way as to keep everyone happy as well as making a profit. Street front retailers have to serve their local public, deal with all the service and quality issues, AND compete with EBay, overseas traders etc.

 

I have seen a lot of "retailer burnout" - dealers in various industries, who through the years of dealing with often difficult customers, customers who say they will take items when they come availale and don't, people who do lay-buys then cancel, etc etc, who have become hard - and sometimes cynical - sadly -

 

so in a situation like this, maybe he didn't handle it as well as he could....but hey, you hadn't ordered it, and how long do you expect a price indication to be held for you personally as a firm quote.....a few months, ......a few years......

 

Your post reads like maybe he didn't have it in stock....why did he ring Armchair to get a price? was it to buy/bring one across from them because there are no longer any available at Southern Models? Would you expect him to do that for no profit?????

 

just a few thoughts after watching this thread for a bit.

Edited August 12, 2008 by SlotsNZ

[GlovemanP510]

Its an interesting dilema when the local store is dearer than other big stores. But im afraid i have to go with the support local. My local hobby store is usually about 3 - 5 dollars dearer on the average scaley car to give you an idea, but unless im planning on a big purchase its simply not worth the time and petrol to drive all the way over to the other side of town and the same applies to postage on small amounts. So while its easy to bag the small retailer remember they are offering a service and its up to you to decide if you want to use it or not. Most retailers are honest people trying to make an honest living and they spend a lot of their time being screwed. Just the other day while i was in there they were dealing with shoplifters who had tried to steal about 200 dollars worth of model cars.

I only mention it because the owner said to me that now that the boxes are damaged he will be lucky if he can sell them at a loss and that the profit from the entire case of cars has now vanished - he rarely gets compensated even if they do get caught'

 

 

Now that i have built a positive relationship with them he will almost always offer to match a price from somewhere else but most of the time i dont even ask.

 

i guess the retailer in question has been a little questionable in his trading methods and certainly i agree with declining the purchase but at the end of the day dont sweat the little things. Id just be happy to have the 200 bucks to spend in the first place and in the end you got a bargain by the sounds of it

 

As the consumer we actually have all the power. we can choose not to buy it if we are not happy with anything

[HiString]

I know it feels unfair when a retailer charges above original retail for something he has sat - [if indeed he did have it in stock, which seems unclear from yuor post] -...........

 

While I didn't specifically say it was in stock, I thought I'd made it obvious that it was...............sorry, my bad.

 

...........would you personally offer to pay him full retail for the old stock he sat of for 2 year that he is specialling off to recover the lost money and opportunity cost of having it there....?

 

Any retailer worth their salt allows for numerous factors in their pricing, one being the cost of holding items in stock, any decision to reduce prices to move older stock is purely a business decision on their part.........they have the choice whether or not they can afford to hold items indefinitely. To ask whether I or anyone else would offer to pay the original selling price is just ludicrous and irrelevant.

 

It's quite hard being in a specialised business especially with the raft of pricing information we have, net buying etc., and running a business in such a way as to keep everyone happy as well as making a profit. Street front retailers have to serve their local public, deal with all the service and quality issues, AND compete with EBay, overseas traders etc.

 

I have seen a lot of "retailer burnout" - dealers in various industries, who through the years of dealing with often difficult customers, customers who say they will take items when they come availale and don't, people who do lay-buys then cancel, etc etc, who have become hard - and sometimes cynical - sadly -

 

I absolutely agree.

 

......so in a situation like this, maybe he didn't handle it as well as he could....but hey, you hadn't ordered it, and how long do you expect a price indication to be held for you personally as a firm quote.....a few months, ......a few years.....

 

Your post reads like maybe he didn't have it in stock....why did he ring Armchair to get a price? was it to buy/bring one across from them because there are no longer any available at Southern Models?

 

What I expected was some consistency in pricing on the exact same item I enquired about a few months earlier, not to be told he had decided to increase the price by approx., 23% after he realised he didn't (as he originally thought) have additional stock in the storeroom and after he had for some unknown reason called Armchair.

 

 

......Would you expect him to do that for no profit?????

 

I suggest you go back and re-read my second post and also take notice of Blackbilly's comments regarding this particular retailer.

 

[rick1776]

Its called a free market. The seller can sell at whatever he thinks is a reasonable price and the buy can buy at whatever he thinks is a reasonable price. The saying buyer beware also comes to mind. Do your homework and then purchase. I just picked up the Lauda Hunt box set for $70 which I thought was a steal. Thats $35 per car. Will I be pissed of it it gets reduced to $59.95, probably but thats what you get with supply and demand situations.

 

cheers

rick1776

[PhilR]

The best bet is to only shop with specialist slotcar shops..

Phil

[Terry]

the auto model shop near westfield has a reputation for being inflexible,somehow it seems that being in newcastle gives him the attitude.

 

 

Terry

[chilla]

Some people don't deserve to stay in business but the fact is that nobody is forcing anyone to shop with anyone else. If a shopkeeper offends you, just stay away. The more people they offend the quicker they go broke and you might just pick up some bargains at the clearance sale

 

My local cafe was sold recently and the new owners are mildly irritating and use lower quality ingredients so we didn't go there as often as we did... until they put a political poster in the window. Clever move, they sucessfully aleniated half of an already dwindling patronage (and no, we don't go there at all any more).

[first corner crash]

I am kind of with the retailer on this one. If the set is no longer available and in demand why not charge a little more? Its no different to reducing the price on a slow seller. The guy has got to make a living. Its your decision on whether to buy or not. Theres an old saying in sales that says the seller determines the price and the buyer determines the sale. I recently bought two "race" edition cars at full retail on release only to see them put on special as a duo 6 weeks later. Such is life. If you have a good relationsip with the seller maybe you are a regular or a club member etc then perhaps the loyalty thing works both ways but as a walk in or one time buyer i think its fair enough for market forces to dictate the terms.

[lavenlaar]

CAVEAT EMPTOR comes to mind....

 

If you don't like it - shop elsewhere. I. too am a small specialised retailer, and hate it when prospective consumers say "i can get that elsewhere for $x cheaper" ... then why the hell did you come here? If you support me over time, i'll do my darndest to help you out.

The retailer in question - let alone being in Westfields where Lowy decides to rip off the smaller guys and take a %age of his/her sale.

I will ALWAYS support the smaller local businesses. but what the business in question has done is not illegal - just immoral, he gave you a price more than likely on the proviso that you'd be in within a time frame ... not months down the track. If he could get more for it - good for him, but are/were you willing to part with that amount? No? then shop elsewhere... you may have been able to get it cheaper if you bought some other items.

 

Anyway - Caveat Emptor or Buyer Beware ....

[HiString]

Lav,

 

The store in question is not in a Westfield complex, just nearby.

 

What probably got up my nose more than anything else was the manner in which he attempted to justify the price with what could only be described as a load of b/s#!t...................anyways, it's now past history, I've learnt a thing or two and any future slot purchases will be done through retailers outside of N'cle.

 

[slots]

THE END