The marketing is a lot more complicated then what you have outlined.
In the USA all "authorized" dealers buy through Marklin USA in New Berlin WI. However, the price structure is dependent on a number of factors, such as volume, and what services the dealer is performing. In a free market economy a dealer can markup or down depending on its overhead. A brick and mortar dealer needs to charge more then a virtual dealer. Some shops have set up internet sites and keep seperate inventory for their net sales. Their retail operation "Storefront" costs more to operate and charges accordingly.
Marklin has been trying to close the loop in it distribution, without much success. Their are a mumber of dealers who continue to buy "black". They avoid the US distribution mark-up but do pay the euro price. The problem in the USA is we are paying for Marklin Marketing cost twice. We pay what is incorporated in the German price, plus what Marklin USA adds to the cost for their expenses.
If The parent company really wanted to increase sales in the USA they would reduce the European price and remove their marketing costs or a portion from the markup.
Shop around look at the 10 or 12 dealers from North America and you will see a variety of prices. Some dealers also offer a 5% incentive if you are an ETE member. Don't be afraid to ask your local dealer for a better price if you have seen it elsewhere for less and can show him that pricing.

I live in the USA and buy most of my stuff directly from Germany. The price advantage has been so large that it easily compensates for any problems if I had to return anything. (I have not had to do so so far) I have used www.lokshop.de - they have an excellent range of products and good prices. I accumulate things I need into a reasonable size order and have it sent in one shipment to save shipping. They do charge 3% or so for credit card payment but you do not pay the 14% German Sales tax. I have never had any problems with customs. To takes a few weeks to get to the East coast. If I can buy something for half price, and it was defective, I could buy another one and still come out even.

If I really need something (non Märklin) urgently I buy it form my local train dealer and he gets it from Walthers. If walthers does not have it in stock it is just as quick to get it direct from Germany.

Here in Australia, we have two Marklin dealers that I know of. www.hobbyco.com.au and Nathans Trains http://www.trainsntoys.com.au/. They both have the same prices. If I compare the prices at www.lokshop.de, I would have very little or no advantage in ordering from Germany. The prices here are very fair, and I consider that maintaining a relationship with the local supplier is at the least very useful, if not important.
regards
Kimball

Hello. I purchase the goods (Marklin or other factories) at www.modellbahn-kramm com in Germany. The shop is serious, correct and prices in comparing with others internet dealers are best. For overseas purchases you can discount VAT and if you go the webpage you can see the price with and without VAT. Before buy I look for two or three dealers in Germany and at last I remain with this dealer. Best regards.

Kimball, I Just noticed your post Quote:

If I compare the prices at www.lokshop.de, I would have very little or no advantage in ordering from Germany. The prices here are very fair,
I would have to dispute that. On average Lokshop landed price is about 60% of the Local Price.
recently I got a Loco locally. Just after buying I found one at a dealer in Germany . Landed Cost would have been $200 Less.
However one does have to help Noel.

It also seems to depend on the product. I have started buying most of my stuff from Mike (EuroModelTrains) whose prices are generally very competitive with the total cost from the lokshop (shipping plus the 4% handling fee they charge) Mike also offers a lifetime volume discount up to 4% based on how much you have bought (I am at 2% about to increase to 2.5%). There are specific items which don't fit here, though. For instance, I decided to buy the Unicef lok and found that the local price was considerably more than the total cost from the lokshop (by over $50.00). Perhaps the US price is based on expected volume of sales here and this was considered a low volume item. I don't know, but remember it is your money and it is your best interest to shop around.

That is interesting. How much would it have been if you had ordered it directly from AJCKids?

Hello all,

Marklin U.S. is not selling anything it is Shopatron who is the go between from marklin's webside and the Dealers.
If you place a order on marklin's webside (shopatron) The Marklin dealer who has the item in Stock and is the closest will get the order to ship that item (there is a fee from Shopatron to the dealer).
Also keep in mind that some of the prices are higher then what Dealers normally sell for.
On a side note in another thread someone asked where Dealers buy from, which by the way upsets me very much since marklin U.S. prices in general are about 30% to 40% higher then the prices in Europe. At the beginning of the Year I was told that North American Dealer who buy Marklin items from a third party will no longer supported by Marklin (this was a blatend lie).
It left the Dealer who followed the rules with marklin inventory which he/she will never able to sell with a reasonable profit margin.

Martin