Can anyone provide some information on how the model railroad equipment marketing and distribution process works?
Who (besides Walthers) are the distributors, and what's their typical relationship with manufacturers and dealers?
Toy and hobby distributors in various cities. They generally sell only to established retail stores.
Con-Cor and Western Star are two I can think of off hand.
What are typical mark-ups/discounts along at various stages of the process?
Discount to retail store is usually about 40% of retail price although books are typically at 33% and brass at 5-10%.
Walther's retail price is a 40% markup. Some dealers do only a 20-30% markup.
Hobby shops typically buy merchandise for 60% of list and sell it for 80%-90% of list.
Many hobby shops stock most items at or near the suggested retail price, but typically offer specials and quantity discounts on new or popular items.
Do all products get sold through distributors, or are some supplied directly to dealers?
Depends on the manufacturer. Direct to dealer distribution can actually produce a higher profit for the manufacturer because there is no middleman to pay. Because of this, generally only smaller
companies deal directly with dealers.