I do not think this has been mentioned yet, but Hornby are introducing a 3 Tier system for supplying retailers. Having had a quick look at the article, it would appear that retailers are in Tier 1 if they actively promote Hornby and Tier 3 if they don't and/or compete with Hornby. :hmmm:
https://www.keymodelworld.com/article/hornby-introduces-retailer-tier-system? (https://www.keymodelworld.com/article/hornby-introduces-retailer-tier-system?)
I thought that sort of dealership tiering had been around for decades.
Luckily it doesn't affect us N gaugers.
Apparently Hattons have been dropped down to tier 3 and as a result they have had to cancel all their customer's pre orders. Maybe also that is why Rails parted company with Hornby last year. My local model shop stopped selling Hornby last year because of Hornby's attitude towards them. This is a well run shop with a good web site so it should have been able to make tier 1.
Quote from: ntpntpntp on June 01, 2021, 03:55:55 PM
I thought that sort of dealership tiering had been around for decades.
Track Shack was always tier 1 so far as I was concerned.
Could it be that just before Hornby first brought out the Arnold Brighton Belle, they asked retailers to gauge the market by getting an expression of interest, then when they knew the numbers stacked up Hornby dealt direct with the public, I'm sure retailers would be a little hacked off with such a trick.
It's nothing to do with the Brighton Belle, or N gauge, it's just generally how they're 'ranking' their retailers, although yes it does appear that they're keen to trade directly, and why wouldn't they be, extra margin!
Obviously there have always been tiers in any retail channel, but I think where this is different is including the appearance of the shop, and the clauses around competition. There's a lot of ire directed at Hatton's at the moment, as everyone gets thousands of pounds of pre-orders cancelled. I'm not entirely sure it's a good idea for Hornby, I think it'll reflect badly on them, as a bit of a petulent tactic. They're effectively squeezing out all the big box shifters (either for not taking the full range and/or not having a tidy shop for people to visit), with Rails gone and Hatton's clearly persona non grata the choices among the big players are quickly reducing.
One of Hornby's criteria for moving up the tiers is a good quality, functioning on-line order presence. Sadly, their own online ordering system falls short of being that. Over several years I have pre-ordered Arnold new items through Hornby. When several turn up together, they send them in one parcel, but charge individual postage for each item. There is then a clumsy rigmarole to get the postage refunded. You would think that they could get their head around 1) the large order qualifying for free postage anyway; 2) sending them in one parcel being a clue not to chrage ten lots of individual postage. Doh!
Hattons, in the bottom tier, appear to have a functioning online ordering system and a concrete and steel shop, but fall because they commission and sell products that compete with Hornby.
Mixed feelings on this.
On the one hand at least Hornby are being a bit more open as to the reasons behind certain shops / retailers being treated better / worse than others.
On the other....the aforementioned cancelling of pre-orders is not good.
I get that if, say, Hattons cancel your pre-order for an item you will be annoyed at them. But surely your annoyance should be directed at Hornby? They are the ones who have cut off the shop and left them with too few items to go around. It's worse because by the time this happens, inevitably said item is sold out everywhere so you are forced to go direct to Hornby and pay full RRP.
For the biggest name in the hobby, apparently who are doing well, this is poor behaviour IMHO.
Skyline2uk
It'd be really interesting to know who's in the top tier. My concern would be that actually virtually all of the 'major' retailers (ie those to whom anyone nationwide would probably look) fall down on one of the criteria, and thus the top tier will end up being some slightly odd shops, who will end up sitting on stock because they're not the typical people you'd order from.
I can definitely see this backfiring for Hornby.
Totally agree with Mike on their own processes too. I had a faulty TTS decoder a while back, and they replaced it, and sent me a hand written cheque for the postage. Madness. It wasn't worth the effort to go to the bank to bank it!
A hazardous strategy, surely? Demoting major retailers will impact market share and increase the likelihood of Hattons and Rails accelerating their own brands. Smaller retailers may benefit in the short run, but longer term they will likely find themselves marginalised by Hornby's online offering. Which will need to improve a lot.
I worry/suspect that what they're doing is reigning in to protect and maximise the profits on their limited production capability rather than aiming for any sort of growth.
In the short term it looks good for the shareholders as they see profit margins rise (because while they're not selling a lot more units, they're making more per unit because they've effectively cut costs by selling more direct) but in the longer term if they're not seen in major model shops then their competition has a chance to gain ground and start taking that trade away from them.
Not being in the UK I can't tell if they're compensating for the lack of shop visibility by advertising heavily though.
Hornby are broadening their range
https://uk.hornby.com/community/blog-and-news/engine-shed/p2-and-proud-celebrating-pride?
Previously you would order stock from the manufacturer when you wanted it. This is still current practice of course, but the current regime from most manufacturers for batch production runs moved the risk from the manufacturer to the retailer.
Retailers have to carry stock, not knowing if it will sell or not.
This step by Hornby is almost like going the next step.
Customers not knowing who to buy from to guarantee their order will be honoured will end up going to Hornby direct to guarantee their purchase.
This is not good for any retailer, Tier 1, 2 or 3. (or in Scotland there will be a few more tiers depending on if the shops sell battered mars bars or not :) )
I am currently in the position where there is a particular Hornby model that I really want (the Reading Signal Works Shunter, Ruston no 20 in BR Blue).
Having already had my pre-order with Hattons cancelled, I now have two on order, with Kernow (will their tier ranking get cut - as they are a manufacturer/sponsor with their own products and with EFE Rail?) and with Hornby direct.
However I am sure if I end up with two there will be a ready market on EBay for the ones that people have missed out on!!!
Bob
some years ago Hornby ie Airfix bought out the JB models range of 1:76 vehicle kits, the majority of which had not been produced by any other manufacturer.
MK gs truck
MK tactical refueller
Saracen APC in two versions
Saladin armoured car
M113 ACAV
M113 FSV
105mm light gun [two in a kit]
a year or so later they were deleted from the catalogue.
some might think that Hornby / Airfix were just trying to delete competitors ??
If I can buy a model/kit from Hattons for £x or Hornby/Airfix for £x+?, which would I choose, as a reasonably sane person taking advice from a Husky ? :hmmm: