I have to admit , I’m like many other folks, responsible for the demise of old-time, mom and pop owned hobby shops. We all get on the internet and order what’s out there for our hobbies, no matter what they are. That’s not the case with every time, but let’s face it, we all take the easy way at times.
I know of one such hobby shop on the outskirts of El Paso TX ( anyone else ?) that I go to whenever I make a trip to the VA clinic just up the road. I’m talking about Woodie’s Train Shop and by the way this is in no way a plug for him but a friendly footnote about his store.
Upon my first visit a few days ago, Woodie showed me his 8’ x 20’ table top layout that had taken him years to build up, it includes four HO tracks and three O scale tracks, with the trains all running separately and with his great knowledge of the hobby and the history of his store to go right along with the theme. He and his wife are in their 80’s and he a veteran of WW II and they both love the rr hobby so much they can’t bear to lose the store to progress even though the light bill can barely be paid.
Woodie maintains a somewhat mixed bag of new items and old as well. He and his wife even made up a series of grain hoppers with their combined names on them “HAZELWOOD”, sorry though, these personized cars went fast and I have the honor of owning the last one ! He has mostly HO and some N and O, old brass HO track is everywhere and new Athern locos are present as well, old building kits that might be 20-30 years old and much more. His collection is varied and could be worth buying up of just for the nostalgia of having older kits still in the boxes. Freight cars, cabooses and old train magazines round out the inventory and the flavor of the store is what captures the hobby enthusiast. It is refreshing to see the inventory up close and personal and get a glimps at the
right on!
my shop almost went out,
if not for a long ten percent sale
I feel the best thing for hobby shops to do to keep themselves alive is to register with a company like Walthers, allowing them lower prices, and the ability to offer ordering through the shop with a discount.
I support local hobby shops whenever I can and sometimes that can even be done via on line purchasing when the shop has a web site.
Two very good shops in Ohio sell via the web and I’ve purshase from both of them and whenever in their towns I stop in. To go to one is a 230 mile round tip and the other is about a 500 mile round trip.
Another very good shop in Toronto, Ontario has sent me stuf via their on line purchasing system and that would be a 1400 mile round trip. I also visit them when in their town.
I hope as many local shops as possible stay open in this connected world.
Why would using Walthers to get you stock from allow you to lower your prices? The dealer closes to me says that he can allways get a better deal on cork roadbed from another distributor. Like most consumers, he works the crowd of distributors for the best deal on price/shipping/payment terms. Walthers usually charges the standard ‘dealer’ price. Walthers participating dealers can have a customer order it in the web via Walthers, and have it shipped to their LHS - if they play with the Walthers plan. I suspect that there may be a minimum amount of business that is shipped theough the LHS to qualify.
Well,the 7 hobby shops I go to only 5 give a discount while 2 is full price…Need I say which of the 7 shops is busier? Hint: Its not the full price shops.
The hobby prices has gotten completely out of hand and the majority of the modelers buys at the best discount they can find on line,through mail order or Train Shows.If Mom and Pop wishes to survive they must give a discount or die a slow death from the lack of sales as nobody likes to pay full MSRP when they know they can get it cheaper.
Alternatively, you may find yourself walking into a LHS only to discover that you are no longer a member of their target market. They may have nothing that you are interested in and they seem to be prospering. LHS’s may adapt in ways you never thought about. You may get exactly what you want…mail order or train shows only…no choice!
Some of my friends are really big into R/C airplanes. They have always thought just like you…“discount or die”. Our LHS dropped R/C airplanes altogether and put out more models, tools, rockets, train sets, sports cards, and other hobby items. My R/C airplane friends have nowhere to buy nitromethane airplane fuel. I guess they won,…huh?
The biggest problem with a small hobby shop is the requirement by Walthers, Lionel, and other distributors that a minimum purchase be made, usually in the neighborhood of $10,000 worth of merchandise.
We have had two small hobby shops opened over the past few years that encountered this policy – one is no longer in business; the other is barely surviving.
From 1990 to the end of 1993, there was a train shop that I usually went to. The owner decided to retire and could not find a buyer, so it closed. Then beginning in January 1994 I started going to another, the same thing happened in early 2002. Around where I live and work, there is a small train shop and a hobby shop that carries trains. Neighter have much of a selection. Usually do not have what I am looking for, sometimes they will. So more often than not when I get something, it is a special order. I will occasionally order from hobby shop, however I have found myself order more online. It is a special order anyway and it is more convenient. I tried to order something from Branchline Trains via the train shop once. For a couple of months they would say that they have not yet contacted Branchline Trains yet. Finally they said that Branchline Trains was not producing the part at that time and they could not get any. I went to the hobby shop and they got the item in 1-1/2 weeks. I have never tried to order from the train shop since.
$10,000 worth of purchases is no big deal for most hobby shops. Why do I say this? Most shops have to sell at least $10,000 retail per month in order to survive. That means that they will be buying at least $6,000 worth of goods per month and will have at least $4,000 per month left over to pay for rent, utilities, insurance and advertising.
You know, $4,000 per month is not very much gross profit left over to pay all of the bills and take enough money home to buy groceries.
It may just be that their sales are too low to warrant having a shop in the neighborhood.
No, the minimum purchase requirements of wholesalers are not an issue. Not enough sales, thats the problem.
I have only seen one hobby shop go out of business in the Carroll County area after twelve years of living there. Train Works, a great place, went out of business for some reason. But here is the cool part, one of the employees went and opened another shop, The Moose Caboose. So, the hobby shops have pretty much stayed a constant number around here.
I wish I could open one, my Mom is interested in doing the same.[:D]
Well, we have mom and pop hardware stores going out of business because of the likes of Home Depot, small specialized clothing stores going out of business because of the likes of Ross and Old Navy, personalized audio and video stores going out of business because of the likes of Best Buy and Good Guys, and mom and pop household stores going out of business because of Walmart and Target (or as we refer to it: Tar-GEY.) So why is everyone surprised that the local hobby shop is struggling against the competition of E-Bay? We can rant and rave all we want about discounts, but when it comes down to the nitty of it, specialized stores work on a FIXED profit margin, and a lot of times, that profit margin is pretty darned narrow. Now I’m retired, and I’m far from wealthy, but if I want to get something for the model railroad, I’m sure not going to go on line for it. I’m going to hie my body down to the LHS (of which we’ve got two, here in the Sacramento/Roseville area) where I know that even if I have to pay retail, if I have any questions or problems about what I’ve purchased, I have people there who will advise me, test out what I’m purchasing (if it’s a locomotive), repair it if it turns out to be defective within a certain amount of time after I’ve purchased it, and make me feel like I’ve invested my money wisely. I’m just like everyone else here, I want my money’s worth for a hobby that is just as expensive as any other hobby, and I want satisfaction. I get it from a personalized hobby shop. I sure as heck don’t get it from E-bay. Sure I pay more money. But I’m a much happier camper for doing so. If I’m looking for pants that will last me about six months tops, I’ll go to Target or Ross. If I want something that will last a long time and look good and keep its quality, then I’ll go to one of the few quality specialty clothing stores still left around here and pay full retail. And know that if the pants get a rip in them, there’s a tailor there that will repair them, or a salesman that will replace th
The chances of opening and maintaining a successful train/hobby shop today are probably about the same as the chances of opening and operating a successful restaurant–perhaps even less. A VERY risky venture!
And I’ve yet to shop at a Walthers participating dealership that actually offered lower prices. Usually, just the opposite is the norm.
It’s great to have a local hobby shop if you’re a customer and if the dealer offers the kind of stuff you’re looking for. But the view from the other side of the counter is altogether different in far too many cases.
Not that Railroad Hobbies has deep discounts, but they do sell at a discount from MSRP. I sure wi***here was a train shop with a quarter of the selection of Railroad Hobbies down here.
CapnAmerica says:Some of my friends are really big into R/C airplanes. They have always thought just like you…“discount or die”. Our LHS dropped R/C airplanes altogether and put out more models, tools, rockets, train sets, sports cards, and other hobby items. My R/C airplane friends have nowhere to buy nitromethane airplane fuel. I guess they won,…huh?
WON? The only thing they won was lost customers…Todayshobby shops can no longer afford to lose customers…You see that nitromethane airplane fuel meant sales that is now lost and that doesn’t include those R/C modelers buying spur of the moment spare parts… Won? Not likely.Remember those R/C’ers are getting there nitromethane airplane fuel from some dealer-as well as other spur of the moment items.
What it comes down to is the people behind the counter. They have to love the hobby enough to accept the low profits inherent in the business. They need to understand the hobby, so they can understand their customers. Most important, they need to know what you’re looking for, and what they’ve got in stock. My LHS guy does a lot of custom work, both painting and electronics upgrades for locomotives. His store hours are very limited, but I can usually find the time to get there. And, as he’s putting my stuff in the bag, he always says something like “I appreciate your business.”
Guilty as charged I recently bought two new engines from ebay instead of the LHS because the prices were a lot better than I can get locally (Western Canada). Usually I only buy older brass locos or out of production locos (no one locally has or can afford to stock any brass in appreciable numbers due to price and it being a small specialised niche of the railroading hobby). Three out of four of the LHS I go to say that they can’t predict when they’ll get their Walthers order(s) due to Walthers and Canada Post tend to split up/process their orders inconsistently, so they aren’t sure what is coming or when (Eg. I have a TRIX Big Boy on order for going on six months now and it’s price will likely be just over $900.00 CDN, I have seen it on ebay and a couple internet hobby shops in stock for a bit less once everything is added up). US pricing and availability can make north of the border look a whole lot more challenging for the hobby.
4 years ago, I worked for a company with its HQ in El Paso. I had the pleasure of visiting Woodie’s several times during that year. I am the proud owner of a Hazelwood box car! It certainly was a great shop to visit. Thanks for the memories.
If my budgeted dollar is 50.00 per month for my hobby and my nearest hobby shop is 70 miles away, a trip can eat up a good portion of the available funds.
In my case a truck getting 14 miles per gallon means 10 gallons at 2.23 per gallon.
Now I have 27.00 and change.
Or, I can spend my dollars on line, and pay 6.00 shipping and get 44.00 worth of supplies.
So, 324.00 worth of Modelling goods per year or 528.00 per year…
Everyones situation is differant and When i visit an area where a hobby shop resides, I do give them business.
Making a special trip however is not something that is very cost effective.
I believe there are many folks in this same situation that do not live in metropolitan area’s or large cities that have sometimes 1 or more shops to choose from.
Now, at the same time I do try to order online from Hobby shops when they are set up to do so. My closest shop is not set up and he has no interest in setting up for online business.(whats up with that?? )
Another more distant shop is interested in setting up but has not as of yet done so(2 years since it was indicated they would have online ordering)
So I end up placing orders to a hobby shop that is 1000 miles away.It is a hobby shop though, not just a mail order site.
It is likely the best run hobby shop in the country.Those of you who do order online know who I am talking about!!!
Ebay is for discontinued or hard to get items. It is also a good way to recoup your dollars invested if for example you want to change scales.
Ebay has its place and it has been a great help to many modelers.
Here we go with the LHS issue again – Round 456 (or is it 457?).
It’s really hard to say exactly why LHS’s are disappearing. Without any hard data, I suspect it’s a combination of competition from on-line retailers, store owners retiring, and the increasingly restrictive purchasing policies from the major distributors.
Whatever the reason, they do seem to disappear faster while the on-line stores stay around and are growing.
As for myself, I’m in the same boat with a lot of those in this hobby. My budget is tight. So if I’m forced to stretch my dollar if I want to participate in this hobby. It’s as simple as that. I have nothing against the LHS, and it will get my business if it’s cost effect for me. Sure you can argue service, but what good is it to me if I can’t afford the item they will stand behind to begin with?
No, no, no…you have it all wrong, the R/C guys won! They wouldn’t pay the prices the LHS wanted in order to make a profit. The unprofitable products went away! The store owner simply turned his attention to a different group of customers, customers that did not mind paying MSRP for the products they wanted.
Guys that want something for nothing really aren’t customers. All businesses drop product lines that are not profitable. It is important to understand that there is a whole world of items to sell and there are a whole lot of customers to buy products. It seems to me to be counter productive to tell someone that they can only stay in business if they sell you their products at just about their cost. Most folks are smart enough to realize that they can always sell something else in order to make more money. For that matter, they might just decide to chuck the train shop business and get a real job so that they can make a decent living. Is this what you really want?