O Gauge. Rails selling Dapol Terriers for £149

[zwilnik]

Rails of Sheffield have a bit of a special on O Gauge Dapol BR Terriers for £149 (40% off) for those of you who dabble in the big stuff.

[geoffc]

Rails of Sheffield have a bit of a special on O Gauge Dapol BR Terriers for £149 (40% off) for those of you who dabble in the big stuff.

They also have GWR Railcars at £199.50 a whopping 47% off of list price of £378.00 and N gauge Serco mk 3 sleepers for £12.95 61% off the RRP of 33.48. Other stores are also offering discounts up to 50% off certain items.
This begs the question if they are not selling them at a loss, what is the true cost of these models and is the RRP artificially inflated to start with giving the retailer a mark up in excess of 100%?

Geoff

[zwilnik]

Rails of Sheffield have a bit of a special on O Gauge Dapol BR Terriers for £149 (40% off) for those of you who dabble in the big stuff.

They also have GWR Railcars at £199.50 a whopping 47% off of list price of £378.00 and N gauge Serco mk 3 sleepers for £12.95 61% off the RRP of 33.48. Other stores are also offering discounts up to 50% off certain items.
This begs the question if they are not selling them at a loss, what is the true cost of these models and is the RRP artificially inflated to start with giving the retailer a mark up in excess of 100%?

Geoff

A loss isn't always a loss in retail. While they may be selling below the original cost price, it may be because either they (or more likely Dapol) have ended up with too much stock of them and need to clear (expensive) warehouse space for new lines that will actually sell for a profit. Sometimes it's more economical to do that than to have to rent more space. Probably even more so for O gauge given the size of the boxes!