# AUTOWORD DUMPS BUD's HO



## videojimmy

*AUTOWORLD DUMPS BUD's HO*

From Bud's email " OVERSTOCK ON JOHNNY LIGHTNING ROUND 2 AUTO WORLD H.O. SCALE SLOT CARS. THIS IS THE LAST TIME I WILL BE ABLE TO PASS ON THESE TYPES OF DEALS AS ROUND 2 HAS CANCELLED MY ACCOUNT. THEY FEEL THAT I SELL THEIR PRODUCT TO CHEAP AND THAT I HURT THE INTEGRITY OF THEIR PRODUCT"


So these people punished one of the most respectable, reliable dealers in the country because he gave his customer's good deals? Why should it matter to them if they're getting THEIR money from HIM in the first place? 

I may NEVER EVER buy another product Round 2 again. 
This is *NOT * how you build costumer loyalty!


----------



## T-jetjim

Maybe there is more to the story. I have no idea if there is a distribution agreement with a minimum sell price that was violated? This would obviously upset other vendors. Just a guess.
Too bad, I have bought from Bud's on eBay and had a good experience.
Jim


----------



## videojimmy

I don't understand, if the company is getting *their* money from vendors, why should they care about what the profit margin is for those vendors? 

Sounds anti American to me. 

I was planning on giving these guys thousands of dollars over the next few years. Not anymore.


----------



## WesJY

JEEZ.. I buy from Bud Ho's all the time. they are great company.

Wes


----------



## wheelz63

if you ask me autoworld is hurting its own self by making cars in china and still wanting to make a ton of money by putting fixed prices on merchandise. this is not american by a long shot. (are you listening thomas lowe?)


----------



## Montoya1

videojimmy said:


> From Bud's email " OVERSTOCK ON JOHNNY LIGHTNING ROUND 2 AUTO WORLD H.O. SCALE SLOT CARS. THIS IS THE LAST TIME I WILL BE ABLE TO PASS ON THESE TYPES OF DEALS AS ROUND 2 HAS CANCELLED MY ACCOUNT. THEY FEEL THAT I SELL THEIR PRODUCT TO CHEAP AND THAT I HURT THE INTEGRITY OF THEIR PRODUCT"
> 
> 
> So these people punished one of the most respectable, reliable dealers in the country because he gave his customer's good deals? Why should it matter to them if they're getting THEIR money from HIM in the first place?
> 
> I may NEVER EVER buy another product Round 2 again.
> This is *NOT *how you build costumer loyalty!


I can't pretend to understand all the nuances but I have read about similar happenings and there is more going on than simple greed. I'm sure that there will be other hear who will 'know' more facts and share them (or was that just AMX).

I agree though it is sad that Bud has been handled this way, he does put a lot into the hobby...


----------



## noddaz

*Nutz...*

This IS kind of disturbing...
It's kind of like having the cars yanked out of my favorite hobby shop.....
*sigh*



> So these people punished one of the most respectable, reliable dealers in the country because he gave his customer's good deals? Why should it matter to them if they're getting THEIR money from HIM in the first place?


But I also can see AW's point here..
If vendor A sells the cars below list, vendor B cannot sell the cars at all unless B lowers his price. (Which cuts B's margin.) And A may have bought more to begin with and can afford to lower the price....
*sigh* A viscous circle with no winner at all.....
No flames please... Just calling it the way I see it...
Scott


----------



## Montoya1

noddaz said:


> This IS kind of disturbing...
> It's kind of like having the cars yanked out of my favorite hobby shop.....
> *sigh*
> 
> 
> 
> But I also can see AW's point here..
> If vendor A sells the cars below list, vendor B cannot sell the cars at all unless B lowers his price. (Which cuts B's margin.) And A may have bought more to begin with and can afford to lower the price....
> *sigh* A viscous circle with no winner at all.....
> No flames please... Just calling it the way I see it...
> Scott


This is what I mean. Haven't we all seen dealers selling at a loss just to stay in a price war and shift stock? I know MRRP goes against the grain but it does have its uses as long as it is not abused.

On the flip side, we have all seen exactly that abuse being pulled on us, the consumer, time without number....


----------



## videojimmy

"On the flip side, we have all seen exactly that abuse being pulled on us, the consumer, time without number...."


exactly my point. if it weren't for guys like Rob over at Bud's, who have helped this hobby stay alive WELL before Round 2 came around, there wouldn;t even be a Round 2... would there? 

Secondly, why are they playing God with other buisnesses? They're getting their money from the vendors, so what gives them the right to interfere with what's supposed to be an open AMERICAN market. 

Once again, the customer get's screwed over. And YES, this is about greed. What if every other buisness operated this way? EVERYTHING would cost morem as there would be no competition between vendors. If a vendor is being outsold by Bud's because Rob offer's lower prices.. so be it.. it's called CAPITALISM.

Autoworld folks are behaving like communists. The next step will be to raise prices all around and lower quality. Mark my words.


----------



## micyou03

If the profit margin goes too low, many vendors won't bother selling them. Then instead of 50 vendors selling them AW may end up with only 10 vendors selling the product. And 50 vendors will buy more from the supplier then 10.


----------



## noddaz

*Let me see if I can explain myself.*



> If the profit margin goes too low, many vendors won't bother selling them. Then instead of 50 vendors selling them AW may end up with only 10 vendors selling the product. And 50 vendors will buy more from the supplier then 10.


 
But you are missing the point...
AW could allow this to happen just like JL allowed it to happen.
But how many vendors are going to be in the business for the long haul when they are willing to make less than 25 cents per car?
And I do not think it is about greed on AWs part. Please read the following and let me explain.
A)We have established that AW is going to make the same amount of money no matter who they sell to. Enough said on this.
B)If vendor "A" sells 2000 toy cars and make 25 cents profit on each car vendor "A" makes $500.
3)If vendor "B" sell 1000 toy cars and make $2 profit per car vendor "B" makes $2000.
Sell half as much product and make four times the money. Vendor "A" works his butt off and makes chump change. Vendor "B" works half as hard and makes good money. And to catch up vendor "A" has to work four times as hard as vendor "B". 
Of course this is assuming that "B" can sell his 1000 toy cars.....
To me it is as simple as that. And remember! This is at the vendors end.
It does nothing for the pocket of AW. AW makes the same money if "A" buys the cars and sells then for 25 cents over cost or if B buys the cars and sells then for _suggested retail. _But look to the future.
Chances are "A" no longer thinks he can sell toy cars because the market is flooded (by "A" and companies like "A") and won't buy any more.
And "B" won't buy any more cars because he still has the last batch in stock until he practically gives them away. And AW? AW is left with the desire to produce toy cars but do not have distributors that are willing to take a chance on carrying them.
And since we are talking about AW now,
there is a good chance that this deal is going to COST them money.
Unless they change something.
Can anyone tell me what that change would be?
Bueller?
Anyone?
And before anyone flys off the handle. I am just trying to have a little fun here. And explain myself at the same time.
Disclaimer: All the As and Bs (and AWs) used in this story are fictional and are not to be confused with living or dead individuals or companies. 
The amounts used in the math equations are pulled out of my.... hat and are in no way to be confused or reconcilled with real profit amounts on real or fictional toy cars produced by real or fictional toy car companies. The amounts used are just an example. Also I am in no way on the payroll of any toy company real or imaginary, but I am open to any and all offers.


----------



## FullyLoaded

This reminds me of awhile back when another slot car company tried to keep the dealers selling at their MSRP so nobody would get an advantage. It turned out in the long run that it caused more trouble than good and finally left things go.

AW/TL is just doing a little clean-up because I remember rumors floating around how anyone with enough cash could become a "dealer" and dump out the JL slot cars to make a quick profit. If they are going to "price fix" the slot cars, I guess AW/TL will have to get a "hired gun" for the online auctions, toy shows, flea markets, etc. and bust anyone selling the cars below MSRP right? IMO, I think AW/JL just shot themselves in the foot and opens the door to other companies.


----------



## Tazman6069

The only way i will buy any more AW is from BUD's


----------



## videojimmy

It's not Bud was selling them for a few bucks, they're asking 10 bucks a body, 3 for 25
Why isn't that enough to make AW happy?


----------



## lflink

here's the thing about AW "playing God" with other businesses...
sure it seems fine to let Bud's (or any others) sell product at any given price, as long as they pay the vendor the original wholesale price. 
But what happens (and i know this is stretching the equation) when WalMart comes in, and offers to buy 2000 cars, just like any other vendor. Then WalMart sells those cars for $1 a piece on discount - a price NO other vendor can compete w/ because no other vendor can afford to take that hit. Walmart's next order then consists of 5,000 cars, and again, they sell for $1 a piece. 
Now all of a sudden instead of 50 vendors buying cars to sell, or even 10, now you have 1 that is buying. That vendor can now DEMAND to pay what THEY WANT TO PAY, and then that vendor can sell them for whatever price they want. 
The equation doesn't have to have WalMart, or the cars being sold for $1. It's just a matter of one or two vendors being willing to take enough of a hit to drive all of the other vendors out of the market.
This is also part of the American economy, and it is the backlash that can be created in the long run that is also not good for the consumer. Any of you from the eastern PA region may be familiar w/ WaWa gas stations/convenience stores. They come in, build a new station on every corner, offer cheaper gas, and drive out the independent franchisee who cannot afford to offer the gas at the same price... next thing you know, the only gas stations in town are the WaWas, and low-and-behold, their prices aren't cheap anymore...


----------



## FullyLoaded

I would assume that AW would have no problems with Bud's HO...it was one of their main outlets to get their product and the prices weren't blow-outs. I just can't see why they'd have problems when they were getting paid for their product.


----------



## hefer

So...if Walmart wants a volume discount on say, 100,000 cars so they can sell them at $7.99, AW would not sell because it would hurt Mom & Pops? I think not...SHOW ME THE MONEY!


----------



## vaBcHRog

lflink said:


> .. next thing you know, the only gas stations in town are the WaWas, and low-and-behold, their prices aren't cheap anymore...


Yea, but their sandwiches are still better than the competition  Also you can't beat the price on their ATM machines and the coffee is pretty good too.

Roger Corrie


----------



## lflink

vaBcHRog said:


> Yea, but their sandwiches are still better than the competition  Also you can't beat the price on their ATM machines and the coffee is pretty good too.
> 
> Roger Corrie


dang straight my friend!!!


----------



## lflink

hefer said:


> So...if Walmart wants a volume discount on say, 100,000 cars so they can sell them at $7.99, AW would not sell because it would hurt Mom & Pops? I think not...SHOW ME THE MONEY!


no, it's not because it hurts the Mom & Pops, it's because in the long run it hurts AW. If WalMart is the only vendor/distributor willing to buy the AW stock anymore (because WM undercut everyone else), AW has no choice but to sell to WM for whatever price WM offers.
Big money / big name distributors hurt manufacturers, not help them. Try to come up w/ a product and take it to QVC, they don't ask you what you want for it, they tell you what they're going to pay for it - you either like it, or you don't sell your product.


----------



## videojimmy

"The equation doesn't have to have WalMart, or the cars being sold for $1. It's just a matter of one or two vendors being willing to take enough of a hit to drive all of the other vendors out of the market"


That's the whole point of capitalism. Competition means consumers win, collusion between business ALWAYS means the customers gets the short end. 

Plus, if AW was really worried about a Wal-mart or whoever, THEY can limit the amount of units thay release to the companies selling them. 

I guess in the end, for me anyway, If Bud's isn't good enough to sell them, My money isn't good enough for AW. We all make our own choices, and I've made mine. I've even bought stuff them in the past I didn't really want, just to support their effort. 

Now, they're going to have to come out with stuff I can't live without before they get another dollar from me... and that won't be easy. 

Thank God for Dash, Dan get's it... and as long as he does, 
I'll buy 2-3 sometimes even up to 5 units of eveything he releases.


In any case, I've said my piece. Time to move on.


----------



## micyou03

lflink said:


> here's the thing about AW "playing God" with other businesses...
> sure it seems fine to let Bud's (or any others) sell product at any given price, as long as they pay the vendor the original wholesale price.
> But what happens (and i know this is stretching the equation) when WalMart comes in, and offers to buy 2000 cars, just like any other vendor. Then WalMart sells those cars for $1 a piece on discount - a price NO other vendor can compete w/ because no other vendor can afford to take that hit. Walmart's next order then consists of 5,000 cars, and again, they sell for $1 a piece.
> Now all of a sudden instead of 50 vendors buying cars to sell, or even 10, now you have 1 that is buying. That vendor can now DEMAND to pay what THEY WANT TO PAY, and then that vendor can sell them for whatever price they want.
> The equation doesn't have to have WalMart, or the cars being sold for $1. It's just a matter of one or two vendors being willing to take enough of a hit to drive all of the other vendors out of the market.
> This is also part of the American economy, and it is the backlash that can be created in the long run that is also not good for the consumer. Any of you from the eastern PA region may be familiar w/ WaWa gas stations/convenience stores. They come in, build a new station on every corner, offer cheaper gas, and drive out the independent franchisee who cannot afford to offer the gas at the same price... next thing you know, the only gas stations in town are the WaWas, and low-and-behold, their prices aren't cheap anymore...


Isn't this what happened to TOMY and Tyco?


----------



## videojimmy

Man, it just gets better. I just got the phone with Rob and he told me that AW screwed hm over another way. He bought two of the DUKES cases from them which were supposed to have two white thunders in each. AW removed them from his cases and replaced them with regular chargers

Sorry Tom, but that's LOWE


----------



## wheelz63

i cant believe how autoworld cant see what they are doing to there own business, people are not going to buy the product being made if this isnt addressed by mr. lowe now and start treating there customers with respect, big and small. somewhere down the line thomas lowe has forgotten about the people who support his company. autoworld wont last just as the other companys havent in the past. not very nice in switching cars on buds order or not selling too them when they were your number one seller of your product.


----------



## zanza

I think the only AW car I'll ever buy was the one and only General Lee I received recently....
Bud's was one of the rare cool seller with cool prices, so if T.Lowe is playing like this, he'll not play with my money anymore, even if I haven't give him a lot yet...

And switching the cars is really low(e)

I think this info should be paste in the AW Webcam thread (you know, this topic clogged with mock up cars only, and nothing more since ages)


----------



## Montoya1

wheelz63 said:


> ...they were your number one seller of your product....


How do you know that?

What has not been answered is was Bud offered the chance to put the prices back up or just 'fired' with no warning.

dw


----------



## zanza

Quoted from Bud's site:

«AUTO WORLD DROPPED MY ACCOUNT BECAUSE THEY FEEL THAT SINCE I SELL THEIR PRODUCT AT A REASONABLE PRICE, I AM HURTING THE INTEGRITY OF THEIR PRODUCT.
BECAUSE OF THEIR ACTION AGAINST ME, I CAN NO LONGER OBTAIN THEIR PRODUCT AT A PRICE THAT WOULD ALLOW ME TO SELL BODIES AND CHASSIS SEPARATLEY AT A REASONABLE PRICE»


Which for me means fro me, that he has not been "fired" but instead pushed/forced to accept Lowe's totalitarism or not buying anymore, which at the end smells the same. :drunk:


----------



## TK Solver

Was Bud's becoming the Walmart of the HO slot car world? Lots of good (and bad)companies don't sell their products through Walmart for various reasons. I'd sure like to see AW stay in business and keep cranking out sets of slot cars I like. I'm willing to wait and see how all this pans out before choosing sides.


----------



## Omega

videojimmy said:


> Man, it just gets better. I just got the phone with Rob and he told me that AW screwed hm over another way. He bought two of the DUKES cases from them which were supposed to have two white thunders in each. AW removed them from his cases and replaced them with regular chargers
> 
> Sorry Tom, but that's LOWE


Did Rob call AW and find out the reason this happened? It seems to me a lot of people here are jumping on the Rob bandwagon. We have only heard one side of the story here, maybe Mr. Lowe had other reasons for dropping Rob as a distributor. To me, this just means one less place to get the cars from at a good price. I will still buy the cars I like from AW because I like what I see coming out. Remember a 2.95 T-jet in 1970 would cost 14.86 as of 2005 using the current Inflation Calculator. 

Dave


----------



## hojoe

I thought that the S in MSRP stood for suggested. Who is AW to tell anyone what they can sell his product for as long as he gets his money? What happened to capitalism? And even if Bud's sells the product at a discount, they will eventually run out of product and those who still want some will have to buy from others at the higher price. This is all mute since we haven't seen any new product in months. What good are webcam shots of car after car when no new product is released? I'm really disgusted with the whole thing.
hojoe


----------



## videojimmy

Think about it.. AW sells the cars for what 16 bucks?

Bud's sells the bodies for 10 and chassis for 6. 

So again, why would AW have a problem with this? 

I really wish AW would respond to this thread and explain themselves


----------



## Omega

videojimmy said:


> I really wish AW would respond to this thread and explain themselves


Never happen. As long as he has other outlets for his products, he does not have to explain anything. 

hojoe, I think Mr. Lowe is pushing MRRP, not MSRP. 

Dave


----------



## wnovess99

Whats so new about this? Price fixing to protect the dealers has been around for YEARS. Lionel does it, Horizon, Scalextric and probbaly some others that I dont know about. Alot of the rules are vauge in these instances. But if you have to put blow out prices on the Dukes or the few other Auto World releases that have came out thus far thats pretty sad. In our local club I was the only member to have (ok well I sell them , so I had to keep 1) a Auto World X-traction car. Thats out of 25 avid HO slot car racers.

-- Elliot


----------



## tomyafx1

*Bud's Ho*

Guys,

I guess the real reason why AW Dump Rob was because two guys WHo say they are dealers are jealous of what rob sells at His store!!!

They told Aw they could sell more and they get to go to show',which is wrong!!

I sure wish I knew the names of these 2--guys, because we can all tell them what we think at the Richfield Ohio show. They are always selling AW cars at this show !!!


----------



## mopar78

This is totally wrong that bud's gets dumped.He pays AW for his cars when he buys them,why is it their business what he sells them for.I'll bet that some other dealer cried about the prices bud was selling his cars for.And i'll bet that the other dealer will now (or has) raised his prices.Tom Lowe why don't you address this situation? Maybe everyone should stop buying your products the next time you release something,that is if you ever get anything out to the buying public in the next year.Buds was great to deal with and does a lot for this hobby.Just my opinion


----------



## A/FX Nut

Hey guys, the whole truth isn't being told here. 
Autoworld sent letters out to all of their distributors and told them if they sell retail and/or have an online business then the price per case will go up for them. The distibutors that sell to hobbystores the price will remain the same for them. And that in turn will help the local hobbystore have a competitive price. 
You won't see these cars in Wal-Mart or any other chain store because the production numbers are way to low. Wal-Mart deals with 20,000, 30,000, 50,000 units not 2,000 3,000 or 5,000. 
The price of these cars are going to stay where they are because of the limited numbers being made. 
Autoworld is not at fault here. And my source for this information came from Motor City Toyz. He is still going to carry the cars but, at a little higher price unfortunately. Randy.


----------



## TK Solver

It would be interesting to hear Motor City Toyz' point of view on this situation as they seem to have obtained preferred dealer status from AW. Clearly, we will still need to buy all those individual parts/add-ons that Rob has been stocking. Will MCT offer all the same products?

Having read the prior post, it makes sense that AW would want to get the local hobby stores back in the chain and I think we all would like that. Can we have the local shops happy AND the web sellers happy too?


----------



## A/FX Nut

TK Solver said:


> It would be interesting to hear Motor City Toyz' point of view on this situation as they seem to have obtained preferred dealer status from AW. Clearly, we will still need to buy all those individual parts/add-ons that Rob has been stocking. Will MCT offer all the same products?
> 
> Having read the prior post, it makes sense that AW would want to get the local hobby stores back in the chain and I think we all would like that. Can we have the local shops happy AND the web sellers happy too?


I wouldn't say MCT has obtained preferred dealer status. He has to pay the price increase on future shipments from Autoworld. And unfortunately he has to increase his prices. Myself and MTYODER talked to Jeff at the Mr.Coney slot show in Chicago back on the 1st of October. I wasn't too happy hearing all this but, it's AW's decision. It's the distributor's decision to continue selling the cars or not. Randy.


----------



## 22tall

Omega said:


> Remember a 2.95 T-jet in 1970 would cost 14.86 as of 2005 using the current Inflation Calculator.
> 
> Dave


Please don't go there. The Aurora chassis was a quality product. I can't think of any part on the JLTO chassis that hasn't had problems. Did they ever fix the rear axle hole problem?


----------



## ParkRNDL

I like Bud's HO. I buy from him at shows whenever I get the chance.

I liked JL/PM, and now I like AW. I have lots of their cars.

I hope I can still buy stuff from Bud, and AW stuff too.

--rick


----------



## micyou03

I like Bud's too. I dealt with him a lot. I've bought from him on e-bay, his online store, his physical store and at shows. Robert and his people are top notch. I am however looing forward to buying AW cars from my more local hobby shops in person. Back when JL came out with their slot cars, hobby stores around here carried them, but couldn't compete with the online sellers and eventually stopped buying releases and sold me all their cars dirt cheap, just to get them out of their way. I'm hoping this time they can make some money on them (even if it means I have to pay more) so they will keep getting new product. It would be nice to make a Saturday hobby store run and pick up a couple of cars and come home and run them, instead of buing cases and not knowing what ones to run first. I hope it works out this way. We will however have to see some real product first though.


----------



## motorcitytoyz

*The truth concerning Auto World and new rules*



A/FX Nut said:


> I wouldn't say MCT has obtained preferred dealer status. He has to pay the price increase on future shipments from Autoworld. And unfortunately he has to increase his prices. Myself and MTYODER talked to Jeff at the Mr.Coney slot show in Chicago back on the 1st of October. I wasn't too happy hearing all this but, it's AW's decision. It's the distributor's decision to continue selling the cars or not. Randy.


Hello! 

This has been a very upseting situation for me and my business. 

Motor City Toyz has been selling the JL slot cars since the very beginning and I have always supported Tom Lowe and his product lines. Over the past 7 years, I have tried to be very fair with my prices and given better deals on case lot sales. 
Infact, when I entered the slot car market back in 1999, JL had just released the Pull-back Thunderjet 500 bodies and I was having a problem finding them at any of the stores that were suppose to be selling them. I contacted JL and started ordering 50 -100 master cases per week and was selling them faster than I could re-stock. I was paying $1.89 per car and re-selling them for $3.00 per cars - per JL's SRP price of $2.89. I moved alot of these for JL and just before they dumped their remaining inventory at the Dollar stores, I had tried to purchase the remaining 53,000 pcs for .59 cents per car. I was too late and the inventory was sold to Dollar.

Now, we go forward to 2006 and yes there was a letter that was sent out to all the Distributors listed on the AW web site. Basically, each person was asked to fill out a sheet and confirm what there main business was - retail, wholesale, internet sales, eBay! 







, etc...
Each person was given the new rules and guidelines for being a Business to Business distributor and the minimum orders that it would take to keep you at the distrubutor pricing. At this pricing, you are only allowed to sell directly to hobby stores/retail stores and you are personally not allowed to sell retail - AT ALL! NO eBay! 







, no store, no website, and no slot car show sales. No sales other than to hobby stores - period!

If you could not meet those guidelines, AW would then sell directly to you at a higher price - called Business to Dealer Pricing - which is a much high price.

Since I, Motor City Toyz, sell at slot car shows, trade shows, toy shows and via my web site, I had no other recourse but to pay the higher price, as noted in the form. I believe that many other dealers like Bud feel that the new pricing will not be good for the long haul and the future of AW. 

I chose to continue doing business with AW in the hopes that in the future they will be able to understand that they need guys like us - out there every weekend - selling the slot cars at various slot car shows and events. 

I know my business will greatly decline due to the new pricing that I am going to be paying and the prices that my customers will be asked to pay. I will try to keep going and continue to sell the cars as long as my customers want them. I am sorry that Bud's HO and others have decided to discontinue to sell the AW line but only they know why and for what reason they have chosen to do so. 

The only good thing about this happen now is that with Christmas season coming, it will give Tom and AW more insight as to the importance of having many people selling your product than just a few! 

In closing, AW needs us - the weekend warriors - that are willing to travel 12 1/2 hours to a slot car show on Long Island, NY - to buy and sell slot cars while hearing everyone bitch about everthing that is WRONG with them but not what is RIGHT! I am a happy guy with love in my heart. I wish no one any bad luck or harm. Lets all get along and have fun with a hobby that is wonderful....


----------



## ParkRNDL

Jeff, thanks for speaking up. It's really nice to hear a clear and complete explanation of what is going on, and I salute your attitude and your efforts to keep things positive even in a less than optimal situation. Thanks for supporting the hobby. :thumbsup:

--rick

edit: PS wish I could make it to LI tomorrow, I'm actually in Brooklyn for a wedding at the moment... but it doesn't look like it's in the cards...


----------



## lflink

Good post and explanation MCT!!! should clear up issues about this for alot of people.

Question for you though, and it's just a hypothetical because I am not familiar w/ all of the intricacies of your business model, nor that of AWs distributor requirements.
Could you form a second business to be the "distributor" that does not sell to the public via retail, so that this distributor business gets the better pricing. Then the distributor business sells the cars to your retail business.

Kinda a win-win-win for everyone because AW is still keeping it's distributor agreement up to par, you win because you still get the best pricing, but you have to resell to your self and maybe even others that want a good distribution source.

Just a thought!! :thumbsup:


----------



## motorcitytoyz

I thought about doing that but without going into detail, it was not as easy as doing so. The red tape involved in setting up a new wholesale business with new name, business cards, and etc...just did not make since to me. Honestly is alway the best policy in life and I know that many of my customers keep coming back for that very reason.

I did send out an email to all customers that have ever ordered from my site and asked the following question:


Would you continue to purchased AW slot cars from me if I had to rasie the price by $3.60 per car? 

I was very surprised at the responses as 72% said YES - 24% said NO and the balance said that they would have to really like the slot car to pay that much more.

This is why a chose to keep selling retail and keep my customer happy as possible.


----------



## sethndaddy

videojimmy said:


> Think about it.. AW sells the cars for what 16 bucks?
> 
> Bud's sells the bodies for 10 and chassis for 6.
> 
> So again, why would AW have a problem with this?
> 
> I really wish AW would respond to this thread and explain themselves


Rob sells cars complete for 10.00, 3 for 25.00, and chassis are 8.00


----------



## A/FX Nut

Jeff, I sorry if I said anything out of line. I remeber what you told me at the Mr. Coney show three weeks ago. 
I can't buy all the cars I'd like to. And I sure wish Bud's H.O. Cars would come to the shows here in Chicago. Both of you are great people to buy from. I like both of you guys and will do more business with you when I can.

I don't like the ideal of paying a higher price for the cars you sell, but no one around here sells the AW cars. Bob's Hobby and Collectors shop in Watervliet, Mi might and he's 45 minutes north of me. So it's the show or mail order for me. I don't think it's fair for Auto World to do what they've done. I hope they reconsider. Anyway thanks for the cars and other items I purchased from you at the show and hope to see you again. Randy.


----------



## 22tall

The increased prices will drive mom and pops hobby shops away. My local hobby shop dropped Lionel when the distributor told them they had to quadruple their order in order to get anything. They didn't have an extra 15 grand sitting around. I look at it as a business tactic to sell the least for the most profit. Everyone is getting screwed. On the plus side I have heard a rumor that every case includes a tube of KY jelly. 

I would rather have 10 places that sell at a reasonable price than I would 50 that overcharge. 

Really hope that the members that thought this board had some direct line to AW now understands that they don't. It took the JL diecast guys years to figure that out. AW has a free bullitin board here and has answered no questions at all. 

Long live Bud's!


----------



## sethndaddy

Really hope that the members that thought this board had some direct line to AW now understands that they don't. It took the JL diecast guys years to figure that out. AW has a free bullitin board here and has answered no questions at all. 
[/QUOTE]

I thought this and wondered the same. we all know Tom visits and reads everything here, why not throw a comment now and then?


----------



## zanza

sethndaddy said:


> I thought this and wondered the same. we all know Tom visits and reads everything here, why not throw a comment now and then?



Maybe because whatever he could say, this will drive to the conclusion of a price increase for same and usual quality of made in China cars like JL and nothing more...


----------



## 22tall

Strange that Bud's is listed on the AW site in the places to buy section.


----------



## WesJY

22tall said:


> Strange that Bud's is listed on the AW site in the places to buy section.


I dont see bud's and Motor City Toyz's name on AW site (buy section) hmmmm

Wes


----------



## 22tall

The news section says they are going to update the distributor list. Looks like they have. It is now a shorter list.


----------



## tlowe

Hello everyone: Auto World now has a two tier pricing structure. One for Business to Business (B2B) and one to Business to Consumer (B2C). Bud sells his product directly to consumers so he qualifies as a B2C customer. He has not been cut off. It is up to him whether he wants to continue carrying the Auto World product or not. It is just that simple!!!

Tom


----------



## zanza

Finally....clearly said

One simple question: I'm a consumer, so I'll pay the rate for business to consumer (logical uh)

But, if Bud is a consumer too, what interest have I to buy from him instead of buying directly from the source (AW website, in my case of an overseas customer)?
And does any "customers" that is selling large amount of stuff through a shop or even a professional website should'nt be called a business, no ?

In my country, I think the answer should be yes, normaly

Anyway, we have a clear answer from the boss and that's what we probably all needed.


----------



## tlowe

No....if you are a consumer then you pay the retail price.


----------



## coach61

Thanks Tom,

It is what I thought Factory to Wholesale, Wholesale to retail, retail to consumer same as every other buisness in america....Always thought it was funny the guy who buys the most ( Distributers) had to pay what the retailers did, this model makes far more sense.

Now stop posting on here and get the dang Cougar out!!!


----------



## hankster

Since the issue has been addressed it is time to close the thread.


----------

