Re: Exactrail


It is not as uncommon a practice as might be thought among the small to mid-size manufacturers. So as not to risk jail for commenting on the market practice of specific manufacturers, I won't enumerate them here. But just think of the small to midsize manufacturers and ask yourself how they market their products. You will find most of them use only direct sales. While this change is not welcome, I view it as an admission of the market share relative to costs.

Rich Orr

-----Original Message-----
From: carbonblack1 <radepierre@...>
Sent: Mon, Apr 2, 2012 3:11 pm
Subject: [STMFC] Re: Exactrail

Brian -

Question is; if one manufacturer elects this course, will others follow ?
The pressure to do so will be substantial.

Walthers is the elephant in the room, to some degree ...
They are in the precarious position of distributor and manufacturer.

Another nail in the coffin, with the LHS bearing the brunt of this.

Ron dePierre

--- In STMFC@..., Brian Ehni <behni@...> wrote:

Direct from Exactrail; looks like I'm not going to be buying anything new
from themŠ

Hello Brian,

The reports are correct and it is not a rumor or hoax.

As of May 1, 2012, ExactRail will no longer offer a dealer discount and will
discontinue our dealer network. Hobby stores may continue to purchase
ExactRail products from at the standard consumer price.

Cost of production has increased considerably for ExactRail over the last
two years. We have absorbed most of these increases through our margins. As
we consider the sustainability of these trends, our conclusion is that the
best solution to serve the consumer is through a more direct model. By
serving our customers directly, we hope to be able to maintain lower prices.

Dealers will continue to receive a discount through the month of April.

Orders placed in April, including any advanced purchases, will still receive
the dealer discount.

Our decision to discontinue our dealer distribution network has come from
much deliberation. We appreciate the dealer¹s contribution to our industry;
we feel that this decision is necessary so that ExactRail may contribute
with them well into the future.

Best regards,

Dave Lotz
Regional Sales Representative
Phone (801) 822-3202


Brian P. Ehni

[Non-text portions of this message have been removed]


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