InterMountain N scale F units

[Point353]

Suppose that a manufacturer does receive reservations for only 80% (as an example) of the required minimum production run for a particular loco in a particular roadname. Some have suggested that the manufacturer should simply proceed with the production run regardless, presumably hoping that the extra unreserved models will ultimately find buyers.

What if the manufacturer were to raise the price of "under-reserved" models by the amount necessary to cover the cost of the minimum run? In the case of a specific loco model and roadname, where only 80% of the minimum run was pre-ordered, the price of each loco might be increased by up to 25%. The cost of the minimum order quantity is thus fully covered, so the manufacturer won't lose any money on any overage.

Given the choice between paying a premium for a relatively less popular combination of loco model and roadname and not having that model produced at all, which would you choose?
 

[MichaelWinicki]

Suppose that a manufacturer does receive reservations for only 80% (as an example) of the required minimum production run for a particular loco in a particular roadname. Some have suggested that the manufacturer should simply proceed with the production run regardless, presumably hoping that the extra unreserved models will ultimately find buyers.

What if the manufacturer were to raise the price of "under-reserved" models by the amount necessary to cover the cost of the minimum run? In the case of a specific loco model and roadname, where only 80% of the minimum run was pre-ordered, the price of each loco might be increased by up to 25%. The cost of the minimum order quantity is thus fully covered, so the manufacturer won't lose any money on any overage.

Given the choice between paying a premium for a relatively less popular combination of loco model and roadname and not having that model produced at all, which would you choose?

That's a darned good question.

My personal opinion is that while it makes the process more complicated I think it would make sense, i.e. "odd" paint schemes would have a higher price tag attached to them. 

Potentially manufacturers/suppliers could incentivize preorders (more) by offering lower pricing until the preorder deadline.  Which would mean an "oddball" piece of equipment is going to have a higher price during the preorder period and an even higher price after the item reaches the US.

I'm kind of surprised more pricing "games" aren't used by suppliers/manufactures to help "funnel" sales.  May have something to do with not wanting to complicate the whole supplier/manufacture-distributor-end user process.  But I know other industries that do offer special pre-order or show pricing to entice early buys.  The pricing then goes up after a specific date.

[mu26aeh]

That's a darned good question.



Potentially manufacturers/suppliers could incentivize preorders (more) by offering lower pricing until the preorder deadline.  Which would mean an "oddball" piece of equipment is going to have a higher price during the preorder period and an even higher price after the item reaches the US.

I'm kind of surprised more pricing "games" aren't used by suppliers/manufactures to help "funnel" sales.  May have something to do with not wanting to complicate the whole supplier/manufacture-distributor-end user process.  But I know other industries that do offer special pre-order or show pricing to entice early buys.  The pricing then goes up after a specific date.

My LHS has been offering Athearn and Intermountain pre-orders at 25% off

[CBQ Fan]

Sounds like the issue is more minimum production runs required by the factory not the price per unit.