I hate to come accross antagonistic but it really bugs me as to why so many actual train shops close up. The main reason for me is they don’t caring true hobby stuff. Instead most carry borderline toy stuff. I would like to see ( I wish I had the know how) a shop that caters to the HOBBIEST, like simply have DCC on hand, instead of only having woodland scenics supply( not to bag on them) have some alternatives. Earth colored paint, the prefered plaster/hydrocal, basicaly simply keep up with the times in terms of new methods. I have gone into places where they will not sell DCC because it changes too fast? How about wirring supplies, electical switches you might actually want to use.
Sorry, just had to vent a bit. Two more shops bit the dust.
If anyone is looking for a great opportunity to open a shop in the Inland Empire give me a call, we could work alterating weekends.
I am not sure what the folks out there are like, but I know here in Phoenix, its a tough crowd. There is one train shop I go to a one regular basis and he told me that he makes almost as much money on the cheap toy stuff as he does on the “hobby stuff” . Guess you got to do what you got to do. That is a shame they had to close.
Contrary to to what you may read on this and other forums modelers are STILL buying the low price range models thats how AccuRail,Athearn Walthers and now Atlas with their Trainman line sees the market.Again these ARE NOT the often quoted “entry level models” but the bread and butter models of the hobby.
A lot of hobby shop owners failed to advance into todays modern market by keeping up with todays business world…They held to the old ways and are slowly dying out from the lack of business.
Failure to adapt to the internet age has been the death nail for many business’ and not just hobby shops. If all a consumer is interested in is price then in an age when most consumers have access to the web an LHS selling at full MSRP is going to lose a lot of business.
The good LHS’s that are successful offer something else.
Perhaps they have joinded the internet age and are on-line retailers.
Perhaps they have chosen to compete with the discounters.
Perhaps they offer expertise and hands-on advice that can not be obtained easily on the web.
Perhaps they have huge layouts and let customers really get involved in the hobby.
Perhaps they have expanded their business to other profitable products like RC cars and airplanes.
The bottom line is that they have adapted and tried to offer something other than price as the reason to buy in their store.
Simon,What you say has merit but,how many modelers that has computers will happily fork over full MSRP when they know the same engine can be had for $30-40.00 less? I suppose those that will you can count on one hand…Even locally most buy the high dollar items by Internet or mail order instead at the 2 full price hobby shops since it makes good economical sense to do so and saves hobby dollars in the process.
They discount, maybe not as much as the big on-line e-tailers, but enough to make a visit worthwhile.
They are experienced modelers and can offer excellent advise and expertise.
They will gladly special-order small items and repair parts that you can’t find anywhere.
They encourage you to see, touch, and feel something before you buy it, or try it on their small test track (It’s a small shop, no room for a layout).
They have just become an authorized DCC dealer (for my favorite brand, no less!) and discount that as well.
They have a nice magazine selection that they have no problem with you browsing through.
No RC stuff, but they do carry some rockets and plastic models. This selection has recently shrunk, though, to make room for more train supplies.[:)]
As you said, they have adapted to the market and are competing in other areas than price. For me, spending some time (and money) in the shop is part of the enjoyment of the hobby.
All of these reasons are why our Hobbytown blowed away not too long ago. They didn’t discount anything. In fact, some things were list plus 10%. They didn’t have anyone who knew anything specifically about trains. They had R/C cars and airplanes, but they were so out of sight with their pricing, the display planes hanging from the ceiling were nearbout black with dust. It was the most pathetic attempt ay a hobby shop I’ve ever seen. I’ve heard the same about a lot of other Hobbytowns, too.
I felt lucky when I lived in Houston the last ten years as we have (at least for the last three) Papa Ben’s. Great shop. Everyone working there is an avid model railroader. Shop is often filled with the people building the layouts you see covered in MR. Tons of good advice. Great selection. Take preorders, discounts to regular customers.
Sadly, now I am in Nashville, and I can’t find a hobby shop worth even going to. So, being a strong proponent for keeping local shops in business, I still order from Papa Bens in Houston and have them ship my order. Easier to order from. Always get good service. And hopefully my little contribution will help keep the shop open. Do I pay a little more. Well maybe a few percent, but that store was the place I went to be with people I enjoyed hanging out with, and if I can help keep it open and doing strong business I will. One of my first stops every couple of months when I am back in Houston is to the shop. Check on the regulars. See how the n scale clubs layout is coming. And get refreshed and energized to do some work on the rails.
An aside: Ben Pearlman died this past month unexpectedly. I will greatly miss him at the shop as will so many other Houstonians. He was an aset to the hobby, and a friend to everyone he met.
Thanks Robert…some of my customers may disagree with you as to just how well I run a train shop[;)]…I’m confident enough to know I’m doing some things right and realistic enough to know I can do a lot better in some areas.
And my store is in a somewhat unique situation. I have made decisions that have helped me stay in business that some other store owners simply cannot do. I’ve also made ridiculously bad decisons that others know better than to make that have nearly put me out of business.
Running a train shop is a lot like skating on thin ice. One minute you are fine, but one wrong step…
I would just like folks to know that there are many, many reasons why shops go out of business. It’s not just the internet.
But I’m way too close to the subject matter to make a rational statement about train shops closing. Hopefully those that do still have a local model train shop or LHS can support it and keep it open. But it IS a two-way street…the shop also has to support it’s customers to stay open.
Competition from online stores with little overhead and no shipping fees and sales tax, as well as many available 'arts and crafts ’ shops and home improvement shops, make things tough for the hobby shops these days.
Couldn’t agree more, OTM. I recently made a $150 order online and not at my LHS for four simple reasons:
I’m using Unitrack and they don’t stock any Unitrack - every other kind of track for N scale, but not Unitrack. I guess they don’t like the overhead for the more expensive stuff.
He told me he could order me in anything I want. Well, I tried ordering a couple things last year. The first time, the guy behind the counter didn’t give it to the owner to submit so he had no record of it. The second time I tried I don’t know that it ever came in. Never got a call about it and got tired of checking after 6 weeks.
Everything he sells is MSRP. That $150 order I made would be over $200 if I ordered through him. I don’t expect an LHS to give me an e-retailer type discount, but if the cost from buying from the LHS is within 10% of ordering online (taking into account the extra shipping cost for online ordering), AND I can get the order in about the same time as ordering online, or even a week or so longer, I’d buy from my LHS.
Trains take up about 20% of his store, the rest is R/C - cars, boats and planes. Looking at his stock from month to month (I go in about once a month just to see what he’s got), he doesn’t move much train stuff. He has locos there that have been there for more than 5 years, I’m sure. I’m sure most of his train sales are in the “toy” area, ie. the cheap bachmann and life like oval sets. He has a good supply of Woodland Scenics stuff, though, just not much other stuff that I need.
My LHS has been around since 1947. They may be a small store, but they have anything I could want.
Brass engines, Car kits, RTR cars, WS scenery, Atlas, bachmann, walthers, peco, life like, and more types of track, scales N, HO, ON30, O, and #1.
My local hobby only deals in trains. The owner is very knowledgeable, offers discounts, and always can get me what I want if it is not in his stock. I prefer going to a brick and mortar store and supporting local small business, even if that means spending a little more.
For big ticket items I buy through a distributor. I usually save up to 40% going through a distributor. I am eyeballing some stuff from Precision Craft right now, and they are msrp minus 25% which can add up to some huge savings.
I think that those folks, who have had the opportunity to shop, browse, and chew the fat in a traditional hobby shop are lucky indeed. Sadly, most people have not had that opportunity. I am in my mid-fifties and have never lived in a town or city which had a really good hobby shop! To make matters worse I have only met three or four people in my entire life who shared my love of model trains and even plastic military models. I have come to the conclusion that we are a rare breed. That is, in my opinion, part of the problem. As a percentage of any given area’s population we probably represent a very small percentage of the total population. Any hobby shop is going to need a certain number of customers, both potential and current to not only stay in business but to grow and prosper. In many cases there just isn’t a large enough local market to support a decent hobby store. Many stores that open are not being realistic in their expectations and I suspect have not looked at their market realistically. However, I also believe that for the astute businessperson the hobby market has never been better; if they are will to embrace the internet and become part of the technological revolution. Instead of crying about the internet why not embrace it and grow a hobby store that would be the envy of all? Although at the local level we are a minuscule market when one considers the market at a national or even global level it becomes significant. I am convinced that a hobby store could be built online that could provide a consistent shopping experience that was excellent and that could also provide the expertise that we hope to find at a local store. I know that I have found friends and advice on the web that I could not hope to find at the local level. The
The bottom line is follow the money trail. If a business does not make money, it will not continue and cannot be sold if it is not making a profit.
Many small shops only hang on because the owner’s shop was paid for years ago and they are just waiting for retirement. I have watched about ten LHS do this in my time in the hobby. If that same business is purchased by a party that needs to turn a profit, it is almost impossible to pay off a new loan and sell a sufficient amount of items to turn a profit in a small town market.
I looked into buying a LHS about twenty years ago that was doing a fair amount of business at that time and the numbers just did not work on paper after you included a loan for the stock and new business.
You could probably start a new business without the buy out overhead in a large city and do better.
The figures below are estimates, but it shows why train shops do not do well compared with other types of business ventures. The percentage are for the total population involved.