Effective September 1, 2005  

BRICK & MORTAR DEALER TERMS

Opening order minimum $150 net shippable (not including BLI items) plus shipping charge of $10 in US.

Reorders-no minimum order size.  Shipping $7 min. ($11 min on UPS weight/value orders) Check with order or blanket credit card authorization.   We stock to ship promptly and only backorder new unreleased items. In the event long outages ARE EXPERIENCED THEY ARE POSTED ON OUR WEBSITE mrrwarehouser.com  AND BACKORDERS WILL BE ISSUED ON REQUEST. Requested COD incurs service fees. Failure to reorder within a 12 month period results in the dealer being considered inactive and a new opening order is required.

 New releases-we will notify by email, fax or proforma invoice so that remittance can be made in a timely manner.  Dealer reservations are firm-failure to pick up promptly will result in cancellation of dealer ordering status.

All sales are final. Defective merchandise is replaced-contact us for instruction-do not return unless so instructed.  All reservations are firm. Checks returned by bank for any reason are subject to $25 service charge or collection/legal costs incurred.

NEW ACCOUNTS: Company check with order; Include a copy of business listing in local phone directory or in national hobby magazine dealer directory with opening order..

INTERNET SALES OUTLETS:  No accounts being accepted. Brick & mortar may sell by internet.

TRAIN SHOW SALES OUTLET applicants considered in areas not served by active, stocking dealers.  Terms as above except each min order is $300 net (in addition to any BLI ordered).

CLUB SHOW ORDER KIOSK:  Testing is underway that tentatively sets a club commission at 10% on sales following special display showing by club at a public event.

DEALER DISCOUNT SCHEDULE:

If you are an established brick and mortar hobby shop please contact us--write (including authentication listing for our discount schedule. Our fax is 260-672-1714. Please do not use the 800 ordering service to inquire.

If you are starting a new brick & mortar hobby shop or have an established show sales circuit and wish to carry Prototype Specific Products for discriminating model railroaders we will take the time to read your business plan & location.  Your commitment to invest several thousand dollars is a must.  Order taking from a handful of friends may be a base upon which to build, but you need to plan to BUILD ON THAT BASE. Our website shopping cart is designed to allow pre-registered dealers internet access (by password) to confidential dealer pricing and ordering.

Our goal, and that of the manufacturers we represent, is to expand the exposure -of the products we carry- to more potential consumers, not to find new order takers for the products our advertising has already presold. Each manufacturer desires and deserves presentation and representation in a manner consistent with the quality character of their products.

DEALER DIRECTORY

SO YOU WANT TO START A HOBBY SHOP?

Welcome to the crowd. It seems like most model railroaders DO want to at some time or another. After you've done your homework and learned how much the average model railroader spends annually, the rental for store space, the commercial utility rates and the cost of at least $25,000 (wholesale) for a basic inventory how many regular customers did you calculate you'll need?

You can do it better? Well your potential suppliers, who have been in the business a long time, might be interested in your plans. Unless, of course you plan to just open a web site or sell on inter net auction. Nor will you have an audience if you "know a few modelers in the area who will buy from me." Why would suppliers not understand such a progressive plan? Because they know that only one of the three major categories of product will be served. You know, the high ticket products that so often are discounted. But those are things only experienced modelers seek (and too often "buying them at wholesale" is the business plan beckoning newcomers to the business). Your potential suppliers know there are two other critical ingredients to this business. And if "brick and mortar" stores aren't thriving to build a foundation of hobby customers the market for high ticket items will saturate, wither and fade. Besides, some high ticket producers are now acknowledging the "advance order taking" nature of their lines and reducing the margins. These lower margins allow realistic and "honest" advertised prices with lower sales commissions consistent with the sales function expected of retail shopkeepers. This is the "price point" portion -1/3 of a good train shop business.

BEGINNERS IN THE HOBBY need lots of guidance and assistance. They need to SEE the variety of product available for them to "grow into" lest they tire of "playing with the train" on a simple oval. A truly creative person may find alternatives to the "brick and mortar" store to accomplish this, but it will have to still be available next week when new problems are encountered. If a "traveling train show" is your business plan, how can it keep creating and nurturing newcomers on an ongoing basis? Perhaps you are thinking of display windows or a co-operating merchant offering "train department space." How will it be staffed?

SERIOUS MODEL BUILDERS need an ongoing supplier of "low profile" kits, parts and supplies. By low profile, we mean products from over a hundred suppliers whose ads, if any, aren't as noticed as the high ticket ads-and whose products need SAVVY SALESMANSHIP and AVAILABILITY. Many shops these days don't include this intermediate step between beginning and high ticket products. A major "retention of customers" step has been endangered and these manufacturers and sources like Model RR Warehouse have developed their own website promotion. In large part this is driven by the need to have accurate information out there (we recently found another website noting one of our lines was long out of business!). "You can SEE IT HERE, LEARN IT HERE and BUY IT HERE" (he didn't say "just order it here")sources are understood by experienced folks in the business as critical. Why do many dealers drop the ball? The wide variety of these products available means that much time and effort is involved, a large stock is needed-and a small percentage turnover will be recognized. An adequate customer base must have been built. These products are often not highly profitable in themselves (AND NEED TO BE SOLD AT FULL RETAIL). But they are important to the flavor of a shop. (Your local fast food doesn't make money on catsup and mustard either but their burger sales would suffer without condiments).

So why do we and nearly all distributors expect much more than a business license? Some require a photo of your brick & mortar store. We require a copy of your listing in the yellow pages or hobby shop directory in a hobby magazine. We know that these mean you've made a commitment to BE THERE and REACH OUT to potential customers. Our terms to such a business require a minimum opening order of $100 net (plus $10 shipping in US) accompanied by company check and copy of your listing as mentioned. This order is from the product lines we carry EXCLUDING the high ticket lines. You can then receive our no minimum reorder terms and competitive terms on high enders-as long as you continue carrying our Prototype Specific Product lines.

Not a week goes by without someone telling us that's just old fashioned and they have a better idea. OK, we'll study your business plan. If it REALLY looks to us like a plan that can do the things we mentioned for beginners and serious hobbyists,(as well as the price point crowd we mentioned) , and if you are properly zoned and licensed, we'll give you an opportunity to prove yourself. Your starting order minimum will be $500 (+$20 ship in US) to establish a representative inventory of Prototype Specific Products (not including high end product) and subsequent minimum s will be contingent on the nature of your business plan. We can assist in locating other appropriate suppliers too. ALL our dealers DO receive the same discount schedule. [Plans that depend only on creaming a customer base established elsewhere need not apply]..

MODEL RR WAREHOUSE, PO BOX 411, ROANOKE, IN 46783

Distributors of Broadway Ltd, Bethlehem Car Works, Cannonball Car Shop, Central Valley, City Classics, DSP EZ Weights, Eastern Car Works, Gray Dove Studio, Hometown, Oregon Rail, Red Ball, Silver Brook Jct Publishing, Stewart Hobbies,Tichy Trains /CMA,The TOOL,Wabash Vly

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