New Store Ready and Open for Business

Finally the new Store is ready for Business. It took a lot more than we wanted but we are hanging on and almost all our stock is on display and available directly from the Store (and of course on the Internet)

We invite you to visit the link to our new store http://www.rocousa.com/hobbystore.htm for you to browse the facility and maybe even see something you need.

We have still work to do but now is under control. At least, now we know where are the things that are not on display yet so we can get them in just one minute.

In other news, we are happy to see the good response that our Customers had for having the prices set in Euros for Marklin, Trix and some other imports for pre-orders in 2010 as then price of Euro has gone down in more than 20% this year and our Customers are taking now advantage on this low cost of Euro translated in a lower price in US Dollars.

Those other we know, that complained about not having some items prices in US Dollars and went to our Competitors because they had a price in US Dollars, now we invite them to compare the BIG difference it made to place the order there instead than here with us. Well, you can not win all then games but we still are receiving pre-orders and calculating the price in Dollars at release time of the new items.

Due the new space we have, we have increased our stock and product lines in more than $ 300.000.00 at cost so the volume of items and Brands is highly larger than before.

We are converting slowly in a true Hobby Store and not only a Model Train Store, however, we are still the LARGEST Marklin/Trix Dealer in USA and maybe the Largest in Faller/Vollmer/Preiser/Viessmann and other European Brands.

There is no doubt about our volume in Tamiya, Kyosho, Traxxas, HPI, CEN. Revell, Forces of Valor, Helimax and others we carry for the General Hobby.

I think that is well worth to visit us if you have then time.

Marklin announces price hike

We have received an e-mail from Walters signed by Tim Wickerham that reads as follows:

"Price Adjustment on February 1, 2010
Märklin Germany has announced a price adjustment will take effect February 1, 2010 on Märklin, Trix and LGB products. Prices have been held stable since October 1, 2008 despite rising costs of raw materials. At this time we have not been informed of the percentage of the increase. We are giving you advance notice so you will have the opportunity to review your present inventory and place fill-in orders prior to the February 1st date. "

This is a joke. Prices held since 2008? Where? Not at Walthers as they increased substantially the prices in February 2009 and not at Marklin GmbH. Do they think Dealers do not keep price lists from one year to an other or what?

But what is a reality is that prices will go higher AGAIN and with an Euro rising daily, this will bring very high values to products from Marklin, Trix/Minitrix and LGB.

While other Manufacturers are struggling to keep prices down to fight against the drop on sales they had, Marklin is doing all what they can to once for all remove the Brand from the face of the Earth because their extreme high prices.

It is clear that Marklin (and all their Brands) have converted in elite only products. There is no more "kids" that can afford these prices nor parents willing to pay for their kid's toys enormous amounts of money required to buy Marklin products.

The new "set of..... (how many?)" is now a common policy from Marklin that make sets of 10, 20 and up to 40 cars. Who the hell can have 40 cars pulled by one locomotive? What has to be the size of that layout?. Oh yes, some of them say "can be sold separately" so everyone wants the car # 1 and # 3 but nobody wants the car # 2 for example, so Dealers will lose a bunch by being stuck with products they can't sell. Why Marklin does not allow Dealers also to but the cars they want from that particular set?

The average Marklin Customer is well over 55 years old, so what is Marklin doing? waiting a few more years to see all Collectors die and then close the Company for lack of Sales?

Widows do not buy Marklin, they sell the wonderful collections their late husbands had for pennies on eBay or given for sale as states to Lawyers that have no idea what they have on hand and also trow away for nothing (other than their fees) immense collections.

If Marklin does not start producing GOOD QUALITY cheap models as entry level where kids and parents can afford to buy them, the future of the Brand is very dark.

If Marklin also does not see that has to eliminate all sources of extra expenses such as subsidiaries that have nothing to do or Distributors that only make a lot more expensive and complicated to provide products from them, then also this will be a problem down the road to recovery and again, future is not bright at all.

It is clear, from the results, that only those Countries where Marklin has sold direct at a global unique price scheme had success during 2009 while all others, went down substantially including USA.

So let's see what the new Nuremberg Fair brings to us but I'm not too confident that will be good news.

In fact, all those not released items from 2009 have new prices as each year they rise prices for non released items.

344 items arrived in one large shipments

344 items arrived in this last shipment from Marklin, Trix, Faller and Vollmer.
We can say now, that we are well prepared to face the season 2009 and that our Inventory in Faller and Vollmer is almost 98% of the products on the program of each of these Manufacturers including a very large selection of discontinued items that we still have stock. If you have the time, we invite you to browse each of these Manufacturers in our web site www.rocousa.com/faller.asp

and www.rocousa.com/vollmer.asp and take advantage of our very low prices nobody can bit us in USA.

Do not forget to review Preiser at www.rocousa.com/preiser.asp We offer the lowest guaranteed price in the Continent and our stock is more than 97% total production in HO, N and Z gauge.
In 1 gauge and G gauge we are not well stocked due low demand on those gauges, but we are able to bring any item you need in our next regular montly shipment.

Also, now for Marklin, we offer upgrades from conventional or Delta units to Digital at cost of decoders plus locomotive, no labor charges. If you see any locomotive in our database you like and need it Digital, we will install the decoder for you at cost of decoder and no charge for labor.

Marklin MHI exclusive 3/09 and Trix MHI exclusive 2/09 published

Marklin MHI (exclusive program) 3/09 has been published in our web site.

Go to our web site and search for the links to new items 2009, then click either on Marklin or Trix new 2009 items and you will find the pictures and links to order these new exclusive one time run products.

Quantities are very limited so order soon. Once the allocation is sold, it is very hard to get more and most of the times, just impossible.

Survey running in our web site

As many of you have noticed already, we are inviting some web surfers to enter in our web site survey.
This is a survey very easy to answer and will take you less than 2 minutes, just a few clicks.
Please note that all answer are anonymous, so we can not know who wrote or punched what.

We have received some comments requesting all sort of stuff such as the cost of shipping a product.

The survey does not indicate name or e-mail of user, so there is no way for us to answer any question you may have.
If you have any questions, please use e-mail to us at rocousa@rocousa.com and we will be happy to answer your questions or deal with your concerns.

If you need more info in a particular item, e-mail us, do not request that on comments on the survey as we will not be able to know who you are.

And please, say what you really think without any restriction. (any way, we do not know who you are). This will help us a lot to improve or make the changes our Customers and viewers want.

Thank you for participate.

PD: Not all visitors are invited to the survey. This is not in any way a discrimination, it is just the way the people of the survey work. They say in this way is more realistic that having the opinion of each visitor.

Any way, you can refuse the survey without problems or restrictions to enter our site.

FALLER filled for BANKRUPTCY

Again, as we set and predicted, Faller has filled for Bankruptcy due to insolvency.
You may read the report on the link given (click on title above and then on translate to read in English).

All these Manufacturers that have enforced the use of Distributors are on the same path. Faller was not an exception.

The prices set by Walthers in USA to Dealers of Faller was more than a 30% higher than prices Dealers can get in Germany and many times, even higher than those we sell to our end users.

We have been buying Faller for over 15 years direct in Germany and we always told them to deal direct with their Dealers instead to go trough distributors, that only make things to go wrong, prices higher, slower service and always in not enough quantity.

The recent bankruptcies of Marklin, Roco, Fleischmann, Jouef, Lima, Rivarossi, and many others must be a clear sign that Manufacturers are doing something wrong.

What are they doing wrong? Not hearing what Dealers say and not taking care of the needs of Dealers and end users.

Having conditions of sale that are not equal to each Dealer is also part of the problem. If a Company does not have an equally and fair price for ALL its Dealers, is directly going to hell, because Dealers form alliances using the one with best conditions to get what they need, but normally this will be less purchases than if they go direct to the Factory and all have the same price.

The export department Manager at Faller has been for many years a blind non sense incompetent person that never saw that Markets like ours (America) was open for millions of Customers if only we cut have direct supply of goods at good price without having to use any Distributor to make more affordable their products to end users and also, produce items that are more American look alike as those made by Cornerstone.

This last Faller notice concern us very much, as we saw for some time now, that they were discontinuing a bunch of stuff and the new items were very few and not interesting at all.

At this pace, soon the European Train Market will be over and I believe that the hobby will have tough times to model in good quality using products from German Manufacturers.

Hope Faller can come out soon of this mess they (and their Export Incompetent Manager) have created.

We still have VOLLMER that we believe is even better in quality for buildings even when they do not have the large selection that Faller had, but the Company seems to be held in a more open view of how business are done in the 21st. Century open global markets.

Walther's sells at more than 40% higher than us

For all those that are receiving the WALTHERS FLYER on the Mail, due the incorrect and unauthorized violating privacy use of the Marklin Club mailing list, to try to take advantage offering all sort of products including all those that we and many of the Marklin Dealers also carry, it is a good idea to compare the prices they have against ours.

In a review of the "SPECIAL PRICE" they show on the last Flyer April 2009 (sale ends 05-31-09 they say) we have found that ALL the products we also carry such as:
Faller, Vollmer, Preiser, Wiking, Bush, Noch are priced way above 40% from our listed price in our web site www.rocousa.com

Marklin and Trix are also offered DIRECTLY to end users, so now we have a new competitor.

But we can rest easy because their prices are way above 20 to 30% higher than ours.
For example a 37187 set for $ 559.99 when our price is just $ 397.23 what about that ah?
A 43614 for $ 149.99 when our price is $ 110.27
A 46329 for $ 144.99 when our price is $ 117.39

So this is just a confirmation of what I have being saying for many years: Walthers does not care for Dealers and much less for users. They want the pealed potato and that's it.

They always fought against Dealers trying to buy direct with the argument that we had advantage over Distributors, well, they are doing the same selling direct to end users, and unfortunately, every day it is a new idiot on the street that believes Walthers is the God of the Trains and will buy from them instead of searching where to buy the same item for a lot less.

Oh well, an other day

Big jump of Euro against Dollar

Today we had a big jump of the Euro against the US Dollar.
These are not good news and those who say they know about currencies, are saying that Euro will be even more stronger, what will have as a result, new higher prices for all those items imported from Europe.

As many have noticed, some items have arrived previously to this rise and can see that for those items we got, the prices were adjusted lower, so we keep our word to try to have the best price possible within the range of our possibilities.

To help a little bet, we have not increased our prices on all what we have in stock, so you may take advantage of those very low prices.

Marklin announces more cancelations

Marklin Germany officially has notified on March 6, 2009 that many items from the regular line pending from 2008 and many of the 2009 new items, are canceled so they will not- be made.
Please reed (in German only but understandable) the official letter HERE

This includes products from Marklin, Trix, Minitrix, 4MFOR and LGB.

This is funny; they just got LGB and already canceling what have not done yet.

Any way, as we said before, this is just an announcement of the problems that we will face ahead.

In honor of the truth

We have received notice from Brenda at Marklin Inc. that the decision to discontinue some Starter Sets from the 2009 program was not a Walther's issue but a Marklin GmbH.
Here is copy e-mail we received from Brenda (blue text) answering our concerns about these starter sets being available in Germany:

Dear William,

The factory discontinued the starter sets. We got an email from the factory and we worked with Walther's to get the announcement out to the dealers here.

Perhaps the factory’s sales department hasn’t notified the dealers in Germany yet? That would be strange because Jeff said he saw it mentioned in a German newspaper article.

Anyway, Walther's would never discontinue something on their own. Even if there is an order for one item they will order it if the factory has it.

Hope this clarifies the situation.

Best regards,

Brenda

Marklin cancelling items from 2009 new items program

Marklin announced cancellation of production of some 2009 new items.

It is not clear if the cancellations announced by Walther's refer only to Starter Sets with 110 volts transformers used to be sold in USA only or if the announced products will be completely removed from the new items 2009 program.

If they are removed from Walther's only, then this mean the poor response Dealers had ordering anything trough Walther's and we can guess, that the rest of the program also has not good response from North American Dealers and pre-orders to Walther's are weak.

If these items have been removed from the program at Factory, then this means trouble on the horizon. Today a few Starter sets tomorrow who knows.

The items canceled now are all Starter sets, HO and 1 gauge plus all the starter sets by Minitrix.
Only one starter set by Minitrix was left that uses batteries instead of transformer.

ITEMS REMOVED ARE:
29011
29019
29150
29181
29477
29482
29757
55038
55039
T11127
T11128
T11487

In the troubles Marklin GmbH faces due the bankruptcy procedure, rumors from reliable sources say that Mr. Putta (the Trustee named to handle the bankruptcy) is negotiating with ALL the shipping Companies in Germany to avoid those Companies to seize merchandise sent by Marklin to their Customers in an effort to get paid for the debt that Marklin has with ALL the shippers in Germany.

This is grave. Shipments are being delayed when they are more needed. Marklin has to find a solution to this matter fast or recovery may be in jeopardy.

But this situation also has proven how weak is the stock at Walther's, as many of the most common parts and accessories are not in stock or not in enough quantities.

Rolling stock is imported in very low quantities, so if we [Dealers in USA] need 10 cars, maybe we can get 1 or 2 and all others go to back orders that take for ever.

Marklin will not disappear that's a fact. Someone will take care of the Company. Several entities have advanced interest in the Company including (rumor) Veissmann, the manufacturer of signals, catenary and electronic accessories including digital components and that is a strong industrial power as they also produce other products not related to Hobbies that allow them having the resources needed to take care of the Company.

But what is certain, is the immense list of products that have been discontinued at Marklin GmbH.

Just take a tour at http://www.maerklin.de/produkte/frontend/index.php and type a number 3 only on the search window (this will display all items starting by 3 that are of course all the locomotives) you may also type a 4 for cars.

Check it out, how many red lights are in the results and how many green. Less than 3% is green and those 2009 new items appear with yellow light. It is clear that reduction is profound and that very few items will be left on the regular program or will be reissued under new numbers maybe with new decoders or something like it.

Check number 7 and you will see that half the products for catenary are not available. Why? Maybe because Manufacturer of it (same who makes it for Viessmann) has not been paid, who knows why.

We hope this will be over soon and that we will be able to return to normality as the panic this has caused, made many Customers to place nervous orders of material they maybe do not need, or at least, not in the quantity they have ordered lately.

We will do our best to keep pace with the orders we receive and our stock is well balanced, but as everything in life, it might get a point where there is no more of a particular item. We can not guarantee supply for ever if we can not get shipments from Germany and by now, they are delayed. We ask for patience. This will resolve good.

Walthers lowers prices to Dealers for Marklin, Trix, 4MFOR new items 2009

After we posted our complain for high prices from Walther's to USA Dealers, we have just received the following letter from them:

"February 13Th, 2009

Dear Marklin Dealer:

Given recent dealer feedback on our 2009 Marklin new item pricing and the volatility in exchange rates, Walther's and Märklin GmbH would like to announce that we have reviewed our pricing and have lowered them to close the gap with pricing in Germany.

Attached are updated order forms for each of the new item product groups. Over the course of the next couple of days we will be working to update our system with this new pricing.

Please be sure to get all of your new item orders to Walther's by February 28th., 2009 to earn your early order discount. [added by us: (3% is the discount, same in Germany so this is not any extra advantage)]

We value your business and hope this new pricing addresses some of the issues you have brought to our attention.

Sincerely,

Kevin Copsey
VP of Sales
Walthers"

Well, this is the proof that what we said was correct [Walther's prices are well over 35% to 40% higher than Factories to Dealers in rest of World] and that we had the reason about Walther's returning to their policy of high markups to Dealers, however, the new prices are still not good.

I will recognize that Kevin Copsey is very concerned about all this and that he is trying to do his best, he listens to us but the policies at Walther's is what is wrong. One person can do nothing there.

Walther's has reduced about 10% to 12% the old published Dealer purchase price for new items 2009 but this is still too high compared with the prices in Europe to Dealers there. Starter sets are not included on this reduction and juust a few bucks were discounted, not even worth to mention it.

However, they have announced the prices for LGB and here AGAIN we have the 30 to 36% gap.
Why they don't lower all the rest of regular products in the same percentage, why only new items 2009 from Marklin, Trix and 4MFOR?

We can not trust Walther's and I ask for a campaign to avoid buying ANYTHING from them as all is overpriced.

They tried to sell us at that high price. If it wasn't because we complained and spoke with them, we will still have the original price. This is not right. Why we need to complain to get better price? why they must have these high margin?

Even when I'm on risk to be singled out and even removed from my dealership at Marklin, I will keep fighting against Distributors greedy that only makes our products a lot more expensive and harder to sell.

This year of uncertainty and heavy recession, we can not tolerate this unfair practices that deepens our concerns and possibilities to stay alive in business.

It is not fair either that one person must fight as I do to get a small piece of bread.

Food is for all and must be at the same price and in the same quantity. I agree with scales of prices based in volume of purchases, but the base price must be the same for all.

What Micro Macro Mundo has done since 1994 in benefit of the collectors is well known. Always trying to get the best price and conditions not only for Customers but for our Competitor Dealers that take benefit or our work without any danger or risk on their part.

But this will also end. I'm sick of be getting things for others. From now on, or you join the fight for Factory Direct Sales or you are OUT of my fight, now I'll be fighting for my self only.

This discount will benefit all Dealers, not to us as we do not buy new items at Walther's, so enjoy now and at least have the decency to recognize what we do for you [Dealers]

Prices for new items 2009 posted

Prices for Marklin, Trix, Minitrix and 4MFOR new items 2009 have been posted.

We have listed the "Retail Price" set by Walther's and our price as "Our Special Sale Price" that is what we will charge you for pre-orders placed NOW until end of February 2009.

The price will be in force if Euro fluctuates between 1.28 and 1.32 per US Dollar.

If Euro goes under 1.28 at release date, then we will recalculate the price at the rate at that time and price will be lowered in US Dollars accordingly. Same will be done in the other way if Euro goes over 1.32 per US Dollar.

We have listed prices for 4MFOR and those are our pre-order prices. We do not have any Retail Price set for those products, so the price you see is the price you will pay (exception made on exchange rates as above explained).

If you have any doubt, we will be happy to give you the price in Euros that is FIX. The price is Euros will not change if Marklin does not change prices.

On September 1st. Marklin has announced an increase on prices across the board, so all items will rise.

Marklin Bankruptcy

Sad news.
On February 3rd. 2009 Marklin GmbH, the owner of Trix, Marklin, 4MFOR and LGB, declared insolvency after a 50 million Euros loan was denied by the Banks in Germany to the Firm based on concerns about many changes too often in the High Management of the Company among others issues.

Based on this, the Company had no choice than file for what is the equivalent to chapter 11 in USA (Bankruptcy protection).

At just 2 days from the opening of the Nuremberg Toy Fair, this news were like a earthquake shaking the Industry, as many other manufacturers are also concerned on the future of the Industry if Marklin disappears.

Employees have been working without being paid for more than one Month, what also made the things worst as unions are pressuring the management (completely ineffective as we have said in many occasions) to take the measures needed to rescue the Firm from imminent total Bankruptcy.

As we said 3 years ago, repeated 2 years ago and also said past year on each Toy Fair, the Management of Marklin GmbH was inadequate, completely uneducated on Train Businesses and what was worst for us, completely ignorant of Global Markets as they are now.

We have the proof in our hands: The meltdown of the market in USA and the deep recession we are in has not been avoided by the rest of the Globe. It is clear that we started this thing in USA and now, is a Global problem.

So why Marklin did not see that they had to take care of their business in exports to other Countries and have a UNIVERSAL price, same conditions for everyone and avoid having "Distributors" that only make the product more expensive without any need and consequently, makes it more difficult for Dealers to sell it and results in lower sales that are the same than lower purchases to Marklin GmbH and end on this bankruptcy?

Because a President that knows about "perfumes" can not understand about Trains (first of all, perfumes are more focused to women than men when Trains are more focused to men than woman), and one export manager that have no idea where each Country is located, how many people live on each Country nor what is the potential of one of the biggest Markets in Earth, the United Sates of North America and Canada.

This individual is the artisan, along with Fred Gates, the ex-president of Marklin Inc. of this mess in USA and the naming of Walther's trains as their Distributor exclusive in USA for Marklin, Trix, 4Mfor and now LGB.

Well, this year, if Dealers are still forced to buy at Walther's, the markup for Dealers compared against what a German Dealer pays in Germany is an average of 40% higher that guess what, will be passed to our Customers.

Is this fair? Is this something that can solve the problems of Marklin or will deepen them as less purchases based on less sales will occur ?

This is what the management of Marklin has not seen and has never liked to ear from me. That they are wrong keeping Distributors in USA that we do not need and that make those huge margins. (Marklin Inc. was also a marker up on an average of 28%)

Same as those CEO's that have taken money from the bailout Government has given to them to only pay them self huge amount in the million of Dollars as bonuses and parties for the worst performance they never had. (see AIG, see Ford, see GM, see anyone you like, all are the same)

So where we go now? TO HELL

I will keep an eye on the latest news to be posted here, but this posting must stay for history:

Marklin GmbH will not survive if does not take measures logical with the actual market. some of them in my opinion are:

1.-Global Pricing
2.-Stop forcing German Dealers to have a Store in Store: they are Marklin Dealers and NOT furniture show rooms.
3.-Open Factory Direct Purchases for any Dealer that likes to buy direct at the same price than German Dealers.
4.- Close Marklin Inc. A waist of money for nothing. (sooner or later it will happen anyway)
5.- Remove all Distributors around the World if they can not sell at the same price Marklin GmbH does to Germans.
6.- Do not force Dealers and Customers to buy set of tons of cars not needed. Better make one car at the time than sets of 20 or that many "trains" with bunch of cars no body wants.
7.- Forget the "collectability" of any item. Since eBay exists, there is no More "collectibles" so why to produce hot items in short quantity. Make them available as many as Dealers order.
8.- Create new items, do not repeat same item again and again just with a new road number.
10.- Fire all those "consultants": that have proven as we predicted, not to have any idea of anything other than huge bills to Marklin.
11.- Fire Fred Gates as "consultant". We do not need a consultant that did what he did in USA.
12.- Met with your Dealers that are they who knows what people want and how to do it and what can be sold and what don't.
13.- Do not compete against the Dealers selling all your products on line or at your own Stores.
14.- Stop Dealers Sales on eBay. This is hard to control I know it, but can be done if you police a little bet more eBay.
15.- Stop the BS of One Time Run when you know you will make them again and again. See 37993 it was supposed to be only 37990, but them came 37991 and later on 37992. Well now we have 37993 and in the future we will see many more of these if you survive.

16.- CALL ME. yes I have been always the fighter against the Goliaths in the Industry, but at least I have proven that I was not wrong.

(Next two points suggested by Mr. Peter Paul and they seems god points for us, so we publish them.)

17.- Make the Märklin catalogs available on their website as pdf's. Costs them nothing extra, it's fabulous marketing, and most people will buy a paper catalog anyway when it's convenient. I know, they earn a few bucks from selling catalogs, but they lose out on a lot of excitement and collector interest. Much modeling is impulse purchases, but with increasing web ordering rather than local shops, digital information is essential.

18.- improve the Märklin website with USEFUL technical information. List the type of motors (Ac/Dc, shield/clock/anchor) in each loco model so you know what components you can use to upgrade heritage pieces onto a digital lay-out, what is compatible with what (and what not), etc.

Numbers say the truth. Marklin may have had more sales in 2008 but were based in forcing Dealers to buy many sets that are still on the shelves and that will revert in less purchases/orders for new items in 2009. Do you want to bet that orders this years will be less than half?

Do not criticize my English. It is not my mother language. Better tell me where it is wrong to correct it.

New Dealer Prices from Walthers for new items 2009 announced

Whoa.
Today we got the complete list of prices for New Items 2009 Marklin, Trix, Minitrix and 4MFOR that Walther's Trains will sell to North American Marklin Dealers.

Note that Marklin GmbH (Germany) has forced all the American and Canadian Dealers to buy trough Walther's Trains after they named them as their "Exclusive Distributor" for North America and Canada.

If you review my postings in our web site, you will find my predictions done a year ago, where I said "prices used by Walther's to USA Dealers in 2008 are just a laxative to keep Dealers shut up and to prevent a revolution among Dealers against Marklin Inc. and of course, against Fred Gates, the architect of all this mess, and try to say that Walther's was a fair and good decision for Marklin to name them "Exclusive""

Well, today I have the proof of what I said and AGAIN, I was right.

The prices Walther's has set for USA and Canadian Dealers for Marklin and Trix/Minitrix compared against the prices any German Dealer gets is a whooping average of 36% to 41% higher for USA and Canada Dealers.

One thing I do not understand, is that each item has a different percentage in its markup. It seems that they sell higher by what they believe it is a popular or nicer item thank those they believe are not that popular or not nicer.

Any way, this will kill almost 90% of the Dealers in USA that have no way to get merchandise from Germany, as they will not be able to compete against let's say Dealers such us [Micro Macro Mundo Inc.] and those other 3 big in USA and Canada.




We can sell (and we will) to end users LOWER than the price Walther's has set for Dealers.
Example: Our price for Marklin 36216 $ 132.81 Walther's price to Dealers $ 146.99 (Walther's offers a volume discount that can go to a maximum of 7% to Dealers based on Purchases on the previous years. Just very few have this amount. The most Dealers have just 2% to 4%. We had past year an 8% because of our larger purchases during 2007 direct from Marklin, that even with it, our buying price will be higher ($ 135.23) than our selling ($ 132.81) price if we buy from Walther's now.)

This is the same pattern they [Walther's] always had with all other products they carry such as Faller, Vollmer, Trix, Brawa, Preiser and many others, where the markup they have for Dealers is a minimum of 40% compared to the prices those same Factories sell to us Direct.

Of course, we have a factor unknown that is the exchange rate, however, all indicates that the cycle is going in our favor now and that the US Dollar will gain strength against the Euro very fast and maybe we will see soon Euros at $ 1.20 what will make even more attractive our prices.

We remain all our Customers and friends as well as SPIES that we price our products based in actual exchange rate at import time (release time for new items) and that we only make a very modest mark-up so all those that order "blind" from us get the advantage that they pay a fair price that will be set at shipping time and that can save them good bunch of money compared with those that pre-order at fix prices.

We can also have a pre-order price based in an exchange rate between a range, lets say between 1.28 and 1.33 Dollars per Euro but that will change in the same percentage that rate changes at release time if it goes over or under these rates.

We would like to have your opinion on this mater on how to price our products.

So be alert and have the eyes open to our new items for 23009 for Marklin and Trix Minitrix.

In the mean time, we demand to the new Management of Marklin GmbH to open again the Factory Direct program and have only one UNIVERSAL Price no matter what Country the Dealer might be.

We consider this measures and prices by Marklin and the Distributor to be a discrimination to all collectors on this Country as we, the Dealers, are forced to sell at higher prices than those in the rest of the World to only feed a Distributor that we do not need at all.

It is a fact now that repairs and spare parts can take several months before we get them back, that most of the new units damaged must be sent to Factory by the Tech Department of Walther's as they are unable to repair electronic boards and that is only be done every 3 month in average we were told.

We do not need this kind of service. WE can not deny that Walther's have done good progress in shipping in good conditions and protecting their packages and receiving stock from Factory faster, however, replenishing stock of regular items is an other story and they have NOTHING nor dates when they will get normal products back to stock.

This is damaging more our economics and our source of business and Marklin GmbH/Walther's must be liable for the lost of revenue of Dealers due their prices and policies.

Marklin 2009 New Items announced

Marklin has just announced and we have published the list of new items for 2009. It also includes Trix and Minitrix.

You can follow the links to "New Items 2009" and browse this magnificent new items.

Highlights on Marklin are a new Big Boy item # 37993 and the release of item # 31859 containing 3 crocodile locomotives to commemorate the 150 Anniversary of Marklin.

A new Mega Starter set with 3 trains and 2 new Mobile Station is included in this new release.

A total of 173 new Items for Marklin.

Trix and Minitrix also have a very large selection of new items you can see them HERE including a large selection of Digital units in N gauge.

As always, we were the first publishing these pictures and we are already taking advanced orders for them.

Anyone placing orders before March 1st. 2009 will enjoy our lowest price at release time guaranteed to be the lowest in the United States. Orders placed after March 1st. still will have a lower price than anyone else but will not have the dip discount for those that order before that date.

We recognize that ordering without a price reference is tough, but our Customers know us and they know that we are the cheapest, fastest and more reliable source for all your European Model Train products.

In the pages for New Items of Marklin or Trix, we have included a link to the Brochure of new items. On it you can see the "List Price" in Euros what can give you an idea relative the price.

We do not sell at retail of course, so our price will be substantially lower (converted to US Dollars of course) than the price seen on brochure.

The brochure is in German language but is the only that has prices published. English brochure does not have prices.

We will try if time permits, to place a reference price in Euros on each item in our web site.

We invite you to navigate our new items now.

Rebate Offered by Walthers after we complained on their prices

Well, after we sent on 11/12/2008 at 5.45 PM EST an e-mail addressed to Mr. Kevin Copsey, Vice President of Sales at Walther's Trains and in charge of the Marklin/Trix business where we pointed out several facts regarding the absurd condition Dealers in USA are facing on prices now that the Dollar has gained strength against the Euro and the no possibility to buy Direct from the Factory as used to be 3 years ago, Mr. Copsey (who by the way has been very open to our comments and suggestions and we can not say we have not received full response each time we have requested something, many times, he fixed some problems) has sent an e-mail to USA Dealers offering, if not a full solution, at least a "patch" that may help a little bet our Customers waiting for new 2008 items not released yet and that may be released from now till the end of 2008.

This is the text of the e-mail we got:

" 11/14/2008 4:45 PM CST (2 days after we sent our e-mail to them)
Dear Marklin Dealer:
Given current economic conditions and the volatility in exchange rates, Walther's and Märklin GmbH would like to announce a special program targeting previously undelivered Marklin and Trix new items that will be shipped to you between November 21st and December 31st.
Attached you will find a list of the new items that will be covered in the program. The items in this list will receive an additional 15% discount from Walther's. This discount will only apply to the items in the list that are shipped to you during the program period (November 21st -December 31st). Märklin Insider Club and Trix Profi-Club products are excluded. Please contact your Walther's Sales Representative if you have any questions on this program.
We value your business and hope this new program addresses some of the issues you have brought to our attention.

Sincerely,

Kevin Copsey
VP of Sales
Walthers"

Even when this measure does not affect us due the fact that we bring almost 95% of our items direct from Germany and we were already passing the savings from exchange rate to our Customers, it is not less true that North American and Canadian Dealers will take advantage of this measures and price reduction.

What really upsets me, is the fact that we have always fought for the American Dealers, trying to get the best of the business for all of us and we never got a "thank you" from them.

At the contrary, now maybe they will use this price reduction to fight and compete even stronger against us, but we are not worried about it.

Nobody can deny the power we have due our size and stock on Marklin, the service we provide, the speed we serve our Orders from Customers all over the World (just see testimonials in our web site HERE), the facility for Customers to see Stock availability (others do not offer this service because they just want your order that may take weeks or months to get a regular item) and so on.

So from now on, we will not fight in favor of any other Business than ours and we will keep offering our Customers with the lowest and fairest price we can and the best service they deserve to the limit of our possibilities.

We like to say now, that we will keep adjusting not only New items not released BUT ALL THE LINE of products as they arrive to our warehouse based on the exchange rate paid at the date we paid for them, new items or regular and from all the Brands we import and without any time frame limit.

We thank all our loyal Customers that had faith in our word and placed orders "Blind", some of them paying more than from other Dealers when the Dollar fell to 1.61 per Euro, but that now, are taking advantage on our lowest prices few can compete against us.

We also thank Mr. Copsey for taking time to do something in favour of our best seller Marklin and Trix.

However, if we can not get back to Factory Direct this February at the Nuremberg Toy Fair, we will open operations in Europe to sell direct to whoever likes to buy from us with prices in Euros or US Dollars at your wish by selecting the currency you like to pay, direct from the order form in our web site.

Orders paid in Euros will be served direct from Germany and those in US Dollars from Miami Florida.

As we do not have any tie with anyone in USA because Marklin does not exist here, we also will provide service to those Dealers that like to buy direct from us, paying in Euros and being shipped from Luxembourg.