Due to the shortage of semi conductors ESU has to increase the prices on some items due to shortage supply of semi conductors from their current supplier and to continue production they had to buy these items on the free market at a much higher price (up to 100 % increase),
the biggest increase have been the Pullman Gauge IIm/G Rhb Railcar ABe Re 4/4 (30493, 30494 by Euro 200.00), other articles by Euro 10.00
there have been also new announcements regarding a V 200 in 2 red colours, beige and blue and 1 private company (Reuschling) in green, more freight carriages (pocket wagons) have also been announced (increase of Euro 10.00) and locos by Euro 10.00.

John

Edited by user 09 February 2022 01:14:52(UTC)  | Reason: Not specified

Frankly they are lucky to get them at all. This chip shortage is a daily crisis in my professional life, and just getting supply is miracle number 1, indeed I'm sure they had to pay dearly for them.

I received an e-mail today from a Marklin dealer indicating that Marklin prices will be going up ~7% on 6 September.

Simply not buying any of these items. The buyer always gets 'screwed' for whatever reason producers decide. Capitalism is beginning to bug me, a lot 🤔

There is a large profit margin on all types of toys and that includes model rail. If prices keep going up how many new folk will come into the hobby. Us older guys are hooked so will keep paying but may reduce what we buy. Look what Marklin want for a few LEDs on a light bar which can be made in China or elsewhere for very little.

There is a whole spectrum of bit and pieces (mainly out of China) which are a fraction of the price you find with manufactoring firms producing model lights, trees, people, etc,etc.

John

Speaking with Marklin dealers in North America and with a touch of inside knowledge, they would consider themselves lucky to be making 17-20% markup these days. Generally, online discounting and 'hobby' dealers (dealers without overheads of a retail shop/employees or with another business/employment subsidizing the hobby business) have driven margins to the bone with the rise of e-commerce. Dealers have to cut margins to keep their customers and it turns into who can keep the lights on the longest while turning over product. This is also why relatively few hobby stores except a small number of specialist dealers, stock any Marklin these days as selling at MSRP means stock will sit on shelves forever while most customers buy online. Marklin and others have made a few gestures to keep discounting from going too low but the NA market is not big enough to really get a lot of attention from them.

Friends have told me it is similar in Europe but, for the most part, ecommerce growth lagged about 5-10 years behind us in North America. The manufacturers are paying a bit more attention to discount pricing in the last 5-7 years with margins edging lower in Europe and more dealers with professional online shops, but it tends to be a bit of a whack-a-mole game and a balancing act to keep sales strong - crack down too hard on discount prices to help dealers stay in business and your sales volume (and revenue) shrinks.

Will soon be cheaper if company moves out from China back to Europe...

Not on the figures I have seen. The RRP from Marklin would give around 100% markup on the ex-factory price, out of which comes the MWsT to the government. This is why many German dealers will give a standing 10% discount, and Modelbahn Kramm were advertising this years new Items at a nominal 14.5% on the web page - but that is for pre-orders before marklin requires them to have their orders in before the end of February.

Thanks goodness my collection is big enough not to worry about new items, although there have been a couple of locos of interest but the price stops me of getting to extited

John

Hi all,

I didn't have much to add here, but a few random notes:

1- No way marklin retailers (in the US at least) are making 30% unless its a customer they have had for decades who hasn't bothered to look elsewhere.

2- Many of us are not factoring in R&D and amortization into Marklin's (not the retailers) margin. Yes they mark up cost of manufacturing quite a bit, but the design, prototyping, tooling, other molds all play a huge cost in an era when all of this work is done for 1 or 2 runs just for collectors like us. For a 3000 produced in million overs 30 years they can afford to sell at much less per unit, since all that R&D is amortized. I work in the car business where a "new" car represents an investment over a billion euros before a single copy has even been produced...

Speaking to the American (DC, not Marklin) HO market, the "justification run" of an initial tooling was something like 5000 units. That was the fiscal case, however in the vast majority of cases the market could not absorb that many pieces. The result was a few thousand preorder, then fire sales on remaining stock. That in turn led to people not preordering, preferring to wait for a sale. In the past few years this model has changed: they now make a market-correct amount of units, and at a considerably higher price. It has worked for them, as the profit margins remain the same for the manufacturer, and the retailers do much better as well. I am told most manufacturing contracts come with an option to run another few thousand should demand well outstrip supply. That last bit certainly sounds like Marklin as of late....

hmmm
People talking about price increases but Marklin reports an increase in business.
https://www.nytimes.com/...del-trains-pandemic.html