I just did a check on School's Class 'St Paul', I  had one for about a couple of months now but was interested on the prices from dealers.

These are all sound St Pauls:

Hornby £286

Hattons £229

Rails of Sheffield £ 185

Can you believe the price difference? :hmm

Astounding.

Is it like with like?
For example are they in stock?

Yes, In stock

Makes you wonder what the margins are.

Big ones.

I'm sure you're right Bob
I know the margins on some of the DCC kit and that must colour the dealers "recommendations"

Big difference between a system with a 50% margin to one with 15%.

Presumably the Hornby price is list.  Does anyone ever pay list price nowadays ?

Seeing those prices from Rails and Hattons, you'll know that most retailers on maximum discount, probably only pay 50% of list and then get what margin they can from the marketplace.  To get that discount, they do have to spend some hefty bucks.

A shopkeeper making less than 30 to 35% gross margin either has to sell loads (as do both Rails and Hattons) or he's dead before he even opens the doors.

Ask any shopkeeper what overheads he has to cover before he even starts doing business. It would make your eyes water.  That's why the high streets are full of empty or charity shops - oh, and banks !!!.  They're just too expensive to trade from.