PECO price increases

[Graham Walters]

Peco have announced price increases today, there are increases across the whole range of products except K&M Trees.

As an example Code 80 Flexi Track now has an RRP of £3.35 per length.

All the  increases have immediate effect

[njee20]

What was the old RRP?

[Graham Walters]

What was the old RRP?

We sell the track at the moment for £2.70  a length, if we do that with the next order it will mean cutting the margin to around 15%.
We shall have to keep an eye on what the shop in Liverpool does, but we can't absorb that much

[mr bachmann]

mmm, shops with old stock up go the price, you think your doing ok - shops just give you discount , your happy but not as happy as the shop owner .....

[Graham Walters]

mmm, shops with old stock up go the price, you think your doing ok - shops just give you discount , your happy but not as happy as the shop owner .....

We wont increase our price on old stock, as modellers ourselves... that's not what we do.

[austinbob]

Glad to here it. My local model shop doesn't up his prices either.

[painbrook]

What's the actual percentage increase. john.

[trkilliman]

Have Peco given a reason/s for the increases?

The usual ones are increased cost of raw materials, production/energy costs, increased wages bill.
Some businesses will absorb elements of the increased costs, others will pass them on to the customer with lightning speed. Peco may have reached the point where they had to implement price rises?

[njee20]

What's the actual percentage increase. john.

That's what I was getting at, RRP isn't all that relevant when it's available widely at less than retail.

Not that price rises can ever be good! Either margins getting squeezed or we pay more.

[mickster04]

Compared to the BachFar and Dapol price increases, this isn't unexpected. I'm pleased that they've seemingly waited longer than others!

[Ian Morton]

We wont increase our price on old stock, as modellers ourselves... that's not what we do.

The problem with that is that you have to find more cash when you buy in replacement stock. This is usually achieveable for a small price rise but when (as with another prominent player in the N gauge market) they are 20% or so your £1,000 trade order now costs you an extra £200.

On the other hand, it is easier to increase the prices as new stock comes in than reprice hundreds of items both on the computer and in the shop as quickly as possible.

[Graham Walters]

Compared to the BachFar and Dapol price increases, this isn't unexpected. I'm pleased that they've seemingly waited longer than others!

According to PECO it's their first increase in two years, and as I said is "across the board" except for KM trees.

I doubt if it is a standard increase across all products, as an example the cost of a length of Code 80 has increased by 12p, a pack of 25 by £2.50.
When you consider most ( Hattons) discount a pack of Code 80 by around £16, ( RRP was £80 per pack),that increase is going to be difficult for them to absorb, never mind the small guys trying to compete.

[Graham Walters]

We wont increase our price on old stock, as modellers ourselves... that's not what we do.

The problem with that is that you have to find more cash when you buy in replacement stock. This is usually achieveable for a small price rise but when (as with another prominent player in the N gauge market) they are 20% or so your £1,000 trade order now costs you an extra £200.

On the other hand, it is easier to increase the prices as new stock comes in than reprice hundreds of items both on the computer and in the shop as quickly as possible.

A lot of retailers use some kind of EPOS system, an in my experience model shop owners are not the best at pricing things individually, so it breaks down to a few key strokes and changing a shelf edge ticket.

We don't work on RRP, (Does anyone?), instead we apply a standard margin across everything, and this is worked from individual invoices.