Hornby tiers system

[Stese]

Hornby did issue a press release earlier today in which they explain the criteria for each tier. On the face of it each tier reflects the appearance of the retailer’s premises and their willingness to stock other Hornby brands.

Tier 1 is for tidy, presentable outlets stocking multiple Hornby brands.
Tier 2 tend to be the types of outlet that will also include heritage centres but offer help and support but unlikely to stock other Hornby brands.
Tier 3 tends to be ‘box shifters’ with no bricks and mortar presence. But they also added a line to say any manufacturer of products in competition with Hornby would be put in tier 3.

My cynical view is that line was added specifically to hit the likes of Hatton’s.

My realistic view is that all it has done is inconvenience the customer.

Hattons will likely ensure they are tier 1... They do have a physical shop, which is clean, tidy and generally well laid out...

its about a 5 min drive from the dick turpin mersey crossing. (which is why i'll only go there if i'm visiting my MIL)

[darkscot]

I haven't seen any of this so please excuse my ignorance on the matter. So what is the consequence of being in a particular tier? Do Tier one get bigger discounts or share of the goodies?

Tier 1 will quite naturally receive priority on deliveries especially where a product may be in high demand with low or restrictive quantities available.

[GeoffAlan2]

Oh dearie me!

Having seen the problem played out in N, pre-Covid, with Hattons no longer stocking Graham Farish, now Hornby are doing the same in OO.

The MANUFACTURERS are obviously properly scared by 'Outlets' manufacturing, if by manufacturing you mean commissioning models from the same factory that makes the stock for the 'MANUFACTURER'.

It was an obvious move once CAD became the way to do things and manufacturing was moved to another firm in another country. Essentially anyone with the CAD skills and the hard cash could do it. See the N Gauge Society who have commissioned a locomotive for their 50th, albeit there have been problems.

[Steve M]

Tier 3 tends to be ‘box shifters’ with no bricks and mortar presence. But they also added a line to say any manufacturer of products in competition with Hornby would be put in tier 3.

My cynical view is that line was added specifically to hit the likes of Hatton’s.

My realistic view is that all it has done is inconvenience the customer.

Hattons will likely ensure they are tier 1... They do have a physical shop, which is clean, tidy and generally well laid out...

its about a 5 min drive from the dick turpin mersey crossing. (which is why i'll only go there if i'm visiting my MIL)

Hatton’s can only regain tier 1 status if they stop manufacturing their own products according to the Hornby criteria.

That sounds to be rather anti-competitive and it’s not as though Hornby don’t have previous on this - they rushed out the RR class 66, kept the new Terriers under wraps and have their own generic 4 and 6 wheel carriages, all of which were timed to scupper the opposition.

I also read somewhere that retailers are having to agree not to discount new products for a certain time period after release. It’s just an assumption but I guess that deal included an agreement by Hornby to withdraw their own club discount scheme.

And ultimately it’s all detrimental to the customer and leaves a rather nasty taste in the mouth.

[dtb]

I also read somewhere that retailers are having to agree not to discount new products for a certain time period after release.

This is correct, from memory they can only discount up to 15% max for the first 12 weeks (or 16) from the release date. Thereafter it's up to the retailer as to what he choses to sell the items for.

[darkscot]

I was in a local model shop today that is what I would call my secondary local shop. I wanted some Humbrol paints and some Scenic scatter. They stock Airfix, Humbrol and Hornby and it is a ‘well laid out’ shop. So I am guessing they would qualify as Tier 1.
The thing is that railway modelling is probably only at most 20% of their business. Their core business is plastic models and wargaming. So they have Humbrol, Javis, Metcalfe et al because war gamers also buy that.
So presumably they could me a Hornby loco quicker and cheaper my other local shop that is 100% railway but looks like a swap meet.

[Chops]

Oh dearie me!

Having seen the problem played out in N, pre-Covid, with Hattons no longer stocking Graham Farish, now Hornby are doing the same in OO.

The MANUFACTURERS are obviously properly scared by 'Outlets' manufacturing, if by manufacturing you mean commissioning models from the same factory that makes the stock for the 'MANUFACTURER'.

I am a bit surprised: so one can have a Chinese outlet contract out a product that Hornby just invested huge amounts of capital into?? If I read that correctly, how is that not simple piracy?

Additionally, Hornby has a generous shipping policy to the USA, I don't know about within the UK or to the rest of Europe, but that also must be expensive for them.

[Stese]

Oh dearie me!

Having seen the problem played out in N, pre-Covid, with Hattons no longer stocking Graham Farish, now Hornby are doing the same in OO.

The MANUFACTURERS are obviously properly scared by 'Outlets' manufacturing, if by manufacturing you mean commissioning models from the same factory that makes the stock for the 'MANUFACTURER'.

I am a bit surprised: so one can have a Chinese outlet contract out a product that Hornby just invested huge amounts of capital into?? If I read that correctly, how is that not simple piracy?

Additionally, Hornby has a generous shipping policy to the USA, I don't know about within the UK or to the rest of Europe, but that also must be expensive for them.

I don't think thats what Geoff means here... I think an Outlet would design a new model themselves (or has someone do it for them).

[darkscot]

I don't think thats what Geoff means here... I think an Outlet would design a new model themselves (or has someone do it for them).

Many years ago (before everything moved to china) I used to work in the electronics industry. A lot of our customers made electronic assemblies for various competing companies. I suspect this is a similar situation in China where plastic moulding companies make parts for various brands. Even if they are not the same company they are probably in the same town. I read once that 90% of the worlds shoes now come from one town in China. So say company X decide to have their own model made that might compete with Company Y, it is highly likely that someone in the company or its environs will take the oppurtunity of making a few dollars by passing this info onto company Y.

[Stese]

I don't think thats what Geoff means here... I think an Outlet would design a new model themselves (or has someone do it for them).

Many years ago (before everything moved to china) I used to work in the electronics industry. A lot of our customers made electronic assemblies for various competing companies. I suspect this is a similar situation in China where plastic moulding companies make parts for various brands. Even if they are not the same company they are probably in the same town. I read once that 90% of the worlds shoes now come from one town in China. So say company X decide to have their own model made that might compete with Company Y, it is highly likely that someone in the company or its environs will take the oppurtunity of making a few dollars by passing this info onto company Y.

I know 100% this happens in the fabriic industry, as its happened to my business and a few others... unfortunatly the nature of the relevent laws in both countries mean its difficult to stop.

saying that, I doubt any of the uk retails making models by commission in this way ate deliberatly setting out with this in mind.