Updated pricing – important changes to pricing structure
Unfortunately, due to the fall in the value of the Pound (£) following the result of the 2016 UK-EU referendum, the builders have faced a reduction of around 20% in the income they were expecting to receive when we started our contracts. In 2017 there was a slight recovery in the £ versus the $ and this has further improved in January 2018. However, this improvement has not been enough to offset the devaluation of the £ versus the Korean Won. Unfortunately the £ continues exhibit significant exchange volatility with the political instability in the UK and EU BREXIT negotiations. No one has any idea of what will happen.
In addition we have had to pay the builders in staged payments with a heavily devalued £. The £ today (31 Jan 2018) in Won terms is still nearly 14% down on the value when we agreed contracts.
We also have an unsatisfactory situation where Customers paying in stages effectively subsidise those who elect to pay later. So we propose to revise our pricing strategy to make it fairer to everyone.
We will now offer a small discount of £50 on small locomotives and £100 on large locomotives for payment in full in advance at the time of reservation (up to a cut-off date which will be announced in advance for each build as progress and the likely delivery date becomes apparent). List price will apply for payment by installments.
For customers chosing to wait and purchase a model after completion and delivery to the UK, there will be a modest premium of £50 on small locomotives and £100 on large locomotives.
Customers opting for the existing arrangements for staged payments will not be affected – there will be no changes to the level of deposits or subsequent staged payments. We propose to apply the new rules with effect from 1st April 2018. This gives everyone a chance to reflect on their individual situation and decide which pricing structure best suits their requirements.