What's killing US hobby shop are distributors in the US artificially
inflating the price they charge for the product forcing the US hobby
shop to sell for more than the minimum advertised price (MAP).
Hobby City sells at or below MAP to attract customers (which is
working). The greed present in the US distributor system is what is
killing them. The unfortunate domestic hobby shop is caught between a
rock and a hard place. These people should take notice that Hobby City
takes a greatly reduced profit margin and increases their customer base
and they end up making more money than if they took the same profit
margin the other companies take
Hey, I buy at HobbyCity as well as many other online stores and the
prices are great. But, if it wasn't for the local hobby shops, I would
have no idea what I was buying. Try to get GOOD info on a specific
product from HobbyCity ... lots of luck. Try to communicate when
there's a glick in the process ... lots of luck. Try to find out what
happened to the delivery of that item you ordered ... lots of luck.
Try to return an item that wasn't what you wanted ... lots of luck.
And if you would like to do a "hands on" of the item before you buy,
the only place to do so is the local hobby shop !
Actually, I buy from the LHS as often as I can. I appreciate them
being there. And thier prices are higher because they also include the
shipping, pay for rent, have employees that handle customer support -
like being knowledgeable about thier products, accepting returns,
handling phone calls and showing and telling customers about the
products so the customer can go order online at a cheaper price !
But as I said, I too buy online but only when the price difference is
so great I can't justify buying locally or when I can't get the item
locally.
I think what's killing the local hobby shops is the lack of hobbyists.
Too many other activities are available to us all so that any form of
modeling takes a back seat.
US distributors must import the item, often paying MORE than what hobbycity
sells it for, add exhorbitant shipping, mark it up for a SMALL profit to the
hobby shops and then the hobby shop of course has to mark it up to make a
profit. Nobody is gouging anyone!
Unfortunately, what you may be getting from hobbycity in most cases is what
is called "domestic" quality on the Chinese market. This is a much lesser
quality than "export" quality which is what you are getting in the hobby
shops.
In China, a $5 profit is HUGE. In the US, it isn't worth the trouble! The
average factory worker in China makes $500 per month. The average employee
at a hobby shop makes $500 a week! So, we are getting bombarded with cheap
goods, paying cheap wages, and putting our own hobby industry out of
business.
The reason hobby shops are disappearing isn't less hobbyists! That claim is
bogus. The hobby is growing by leaps and bounds. What is putting them out of
business is people not supporting them.
Remember the next time you go to your LHS to get a prop, glow plug, advice,
etc. and it's shuttered and dark, you can look in the mirror as to who
caused it for the sake of saving a few bucks. You now don't have that free
advice anymore from your hobby shop owner, the ability to get stuff right
now, when you NEED it (instead of waiting a couple of weeks or more).
Americans love to bemoan our jobs going overseas. This is a perfect example!
You can't demand CHEAP goods AND American business. It just doesn't work
that way.
BTW, I am a hobby importer.
Hey, I buy at HobbyCity as well as many other online stores and the
prices are great. But, if it wasn't for the local hobby shops, I would
have no idea what I was buying. Try to get GOOD info on a specific
product from HobbyCity ... lots of luck. Try to communicate when
there's a glick in the process ... lots of luck. Try to find out what
happened to the delivery of that item you ordered ... lots of luck.
Try to return an item that wasn't what you wanted ... lots of luck.
And if you would like to do a "hands on" of the item before you buy,
the only place to do so is the local hobby shop !
Actually, I buy from the LHS as often as I can. I appreciate them
being there. And thier prices are higher because they also include the
shipping, pay for rent, have employees that handle customer support -
like being knowledgeable about thier products, accepting returns,
handling phone calls and showing and telling customers about the
products so the customer can go order online at a cheaper price !
But as I said, I too buy online but only when the price difference is
so great I can't justify buying locally or when I can't get the item
locally.
I think what's killing the local hobby shops is the lack of hobbyists.
Too many other activities are available to us all so that any form of
modeling takes a back seat.
Ted shuffled out of his cave and grunted these great (and sometimes not
so great) words of knowledge:
As someone else mentioned, it is the middle men. How come I can buy a
product from hobby city for 1/3 - 1/2 of what it costs in the US ? If
you do some searching you will find that many items are the same item,
just "re-badged" (different brand label). A good example are the Tower
servos. If you pull the label off a Tower servo. many of them have
Futaba stamped in the case.
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