I have been looking at an item made by DCC specialties and noticed that Litchfield Station has had to eliminate the free shipping policy because This company and others have a minimum price that their item can be sold for, and offering free shipping undercuts this price.
To be sure it was DCC specialties that caused this I emailed then and they did in fact reply that it was their policy.
This policy just lost them (DCC Specialties) a $500 sale and another future sale of the same amount over a lousy $4
I realise many manufacturers have this clause in their dealer contracts and I try to avoid buying their products for that reason. I feel that is why the prices in this hobby have risen more rapidly then the normal amount of inflation. I buy most of my items where I feel comfortable with the dealer, and undercutting someones price by 4 bucks on a $500 order is not going to get me to deal with someone I have never dealt with before
Just my opinion and a little rant to start the morning, now for a coffee.
Charlie
Geezz...That's too bad....
I've bought a good deal of my DCC stuff from Litchfield....
Gus, the problem does not lie with Litchfield Station,
they are a great company. Unfortunately they chose to eliminate MRC from their line and I have MRC DCC. which has cost Litchfield some of my business. I have in the past and will continue to buy my decoders from them and the service is great. My problem is with manufacturers dictating minimum prices. Last I heard we had a free market society, and I would imagine if you wanted to push it, it is illegal.
What's next, Dictate how much the minimum shipping charge should be? Don't forget to add a handling fee. (that is one that cranks me because if you are in the store they don't charge handling)
Now I can expect to pay $4 more for every NCE decoder order because another company chooses to dictate prices. Quite frankly I would tell these manufacturers to, well you know,
Charlie
Don't like it? Then use another brand. If NCE, Digitrax, MRC, and Lenz got together and said "we're not selling any decoders for less than $100" then that's price fixing. One brand refusing to discount it's products is simply marketing.
When you tell a company they have to change a policy that has been in place you are causing a problem as far as I'm concerned, and yes, I was going to use the block watcher and the power shield x circuit breakers from DCC specialties, which I will now use something else, even if I have to make the circuits myself, or just do without.
They have been awarded patents on their items so this is just the beginning.
There was a time that a company could declare their product as being "fair traded", thereby making it mandatory that every dealer sell that item at the same price. Sometimes dealers could skirt around it by including an accessory or free shipping. Like, back in the 60's, my wife bought me a watch that was fair traded, but the store included a free Spidel band to make a difference. It is now illegal to fair trade anything, or to force a dealer to sell at a given price and if a dealer complies, they are both guilty of a federal crime. Other than that, a dealer can do as they please, if they change their policy, they pay the consequences of losing business. It is a shame when a company is so narrow-minded that they can't see the big picture. To lose a large order with probably a 30% profit margin for a $4 shipping fee is short-sighted at best. Perhaps there are other reasons they're not willing to talk about, because it's hard to imagine anyone deliberately skirting the law like this. :?
As Don says, what DCC specialties is doing is a violation of federal law, but they will get away with it until such time as they are caught by the authorities. Back in the 1960's and 70's Volkswagon automobiles were fair traded until the Federal government stepped in and advised them that they were guilty of violation of price fixing laws. No manufacturer is ever allowed to tell any retailer how much they can sell their product for under any circumstances. It also works both ways. If an item is in high demand and dealers add an exorbitant markup to the price, as happens every time a particular car model is very popular, the manufacturer is also not allowed to tell the dealer that he is charging too much.
I had another reply from them and they kind of implied I was a cheap skate, and was only buying stuff that was cheap, not for support. In fact I thought he was rude.
I admit, I am cheap, I shop around, I have no local hobby shop that I have to be loyal to, so I buy where I get the best price and support. It's funny because I quit dealing with one of the stores that supplies his product because they don't support any of the merchandise they sell, that is the manufacturers problem so they say.
I have found that paying a high price does not guarantee a good product or good service, nor does paying a low price say you will get bad service.
I had planned on buying about a thousand dollars worth of their products, so if they make 20 percent I guess that is only $200 bucks, and not that much money to a big company like them. I'll just do without, It's no big deal, I'd rather have a PRR Q2 anyhow.
I'll run trains by timetable and train orders.
Charlie
As an update here. The rude email I got this morning was signed by "Tony" I do find it odd that DCC specialties, and Tony's train exchange have the same address in Essex Junction. Vt.
Funny, but I bought 2 NCE power pro systems for gifts from him several years ago, Guess who won't buy from there again.
So I guess if you are a dcc specialties dealer your compitition is setting prices.
Charlie
Nobody is giving the full straight skinny here.
Under the law that repealed "fair trade" pricing, manufacturers are allowed to set a "Minimum Advertised Price". No dealer can advertise a lower price. But dealers are free to charge whatever they want. Which is why you often see, "call for price" from the very low price dealers. Litchfield cannot be told what price to sell an item for - and they are spinning the story by claiming differently. But Litchfield can be told the minimum price they can advertise. Now, if DCC Specialties puts the MAP too close to dealer cost, then Litchfield is coerced into adding shipping on, or not advertising and charging the lowest price for the item.
Litchfield is too big a player in the DCC world - DCC Specialties and Litchfield need each other in the long run. But it is common in our hobby for a manufacturer to direct sell or sell through a self-owned hobby shop, as well as other retailers. BLI and Factory Direct are an example, as is Bowser and English Hobbies. The manufacturer's in-house retailer has to tread carefully to avoid under-cutting their dealer network. BLI/Factory Direct did just that, causing many retailers to quit carrying BLI. Walther's limits their direct order discounts so that they don't undercut their dealers.
For those who want total freedom for dealers - where does the manufacturer's rights to control distribution of his product start/end? Do you really want the freedom taken away to choose who you will sell your house, your labor, or your own products to? If total dealer freedom was the law, GM, Ford, and Chrysler would not have been able to rid themselves of low performing dealerships. Lionel was both helped and burned through the years selling in discount big boxes - the customer support just isn't/wasn't there, but increased retail exposure was provided. When the company was re-born, a conscious decision was made to only allow qualified dealers to carry their products. A single train set made for/carried by Target is the exception. The law tries to strike a balance between the manufacturer and the dealers.
just my thoughts
Fred W
Go to Litchfields web site and read what is posted about DCC Specialties and shipping. and I got a reply from DCC Specialties stating in fact that is what their policy was. I don't make these things up, and I verified what I was stating before I made a post.
Litchfield has stated that it is because of this companies and others that they have to eliminate the free shipping on more than $75 dollar orders. I have been buying decoders in quanities so I can get the free shipping. The decoders are NCE, so DCC is causing me to pay more money for a product that they don't manufacture. Frankly this sucks.
If Any store wishes to raise prices or shipping charges I understand that, things are going up, I just don't like the way this has played out.
If Litchfield didn't want to let the blame be placed, they didn't have to mention names.
This is the reply I received about the inquiry to DCC:
Yes, DCC Specialties policy mandates minimum pricing and free shipping cannot be used as a way to circumvent the policy
Tony
Charlie
Charlie B Wrote:Go to Litchfields web site and read what is posted about DCC Specialties and shipping. and I got a reply from DCC Specialties stating in fact that is what their policy was. I don't make these things up, and I verified what I was stating before I made a post.
Litchfield has stated that it is because of this companies and others that they have to eliminate the free shipping on more than $75 dollar orders....If Any store wishes to raise prices or shipping charges I understand that, things are going up, I just don't like the way this has played out.
If Litchfield didn't want to let the blame be placed, they didn't have to mention names.
This is the reply I received about the inquiry to DCC:
Yes, DCC Specialties policy mandates minimum pricing and free shipping cannot be used as a way to circumvent the policy
Tony
Charlie
I'm not disagreeing with anything you have said. What I am saying is that Litchfield is free to ignore DCC Specialties policy, and would win any dispute in front of arbitrator or judge over those terms, should DCC Specialties decide not to sell to Litchfield. I would be very surprised to find Litchfield management is not aware of the law. Unfortunately, unless we are dealers ourselves or are customers that can prove adverse impact (you could with the loss of free shipping), there is no basis to make a claim or take legal action. If you could show sufficient damages, you could make a claim, and when not satisfied, go to small claims court. Other than that, the onus is on Litchfield to do something about the situation.
But if things deteriorated to a legal battle, Litchfield would lose in the end because DCC Specialties could make sure it's not worth Litchfield's while to carry the DCC Specialties line (slow shipping, messed up orders, and so on). Which is probably why Litchfield puts up with the policy rather than fight it.
Fred W
Nothing prevents you from expressing your concerns directly to the DCC Specialties folks.
MountainMan Wrote:Nothing prevents you from expressing your concerns directly to the DCC Specialties folks.
I have
Second step: stop buying their goods.
Third step: boycott the company
Not much else a consumer can do except to vote with his wallet. I do it frequently - just finished doing it with Nook.