Hobby Lobby - So What's the Deal?

That would be my guess.

WmB

To reply, get the HECK out of there snipped-for-privacy@earthlink.net

Hah! Seeing the $29.99 tube of glue reminded me of my light bill for my shop last month. $9,573. Yep. It normally averages about $15. The meter reader read the meter next to mine & it's a heavier user than me. What was most disconcerting was the 2 'customer service' reps I spoke with seemed hardly surprised that a $15 bill was now 600+ times as much. "It's been confirmed that the reading is accurate, sir." Yeah, well, they accurately read the wrong meter. Got the new, corrected bill today, $16.

Hobby Lobby is a large scale retailer of many hobbies and crafts. They are not a model shop. Everything they sell is a unit, no matter what it is. They put nearly everthing on sale twice or more a year for 1/3 to 1/2 off regular retail. They keep churning money and make a profit off the other things most folks buy when they come in for the sales items. They make lots of money. Jerry 47

If ours is any indicator of company wide merchandise, most all the labels read Made in China or India. That would be the best clue for their ability to 1/3 to 1/2 off everything several times a year, not to mention quarterly taxes.

-- Chuck Ryan snipped-for-privacy@REMOVEearthlink.net Springfield OH

well dang it. why aren't they around San Francisco area?

Craig

Jerry 47 put it quite well, they're good business people. They have a 'loss leader' sale item that brings people in the door and then the person buys several 'add-on' items which have a higher mark up/profit margin.

Ie: In the auto parts business we put a brand name of oil on sale. A person comes in wanting five quarts of brand-x oil. We don't make any money off of the oil, but we make a ton of profit off of the regular priced oil filter, air filter, PCV valve, cabin air filter, shop towels, hand cleaner, filter wrench, and the bottle of soda and Slim Jim (tm) that he buys at the same time.

Hence, when HL puts the kits on 50% off sale, they are anticipating that you will buy the regularly priced glue, knife blades, paint, inkjet printer decal making system, etc.

This is just good business.

To answer another poster's question, the reason that Hobby Lobby hasn't moved into the SF-O area is because of the nature of their business ethic. This is a company that's VERY steeply based in bible-belt type business ethics. To the point that the entire company shuts down completely one day per week, they are _NOT_ open on Sundays. Frustrating to some cus- tomers, but a lifesaver for many employees. It's nice for those people in the low paying service industry/retail sector to have one guaranteed day off per week. The 'fast food' establishment Chik-Filet is the same way, it's sur- prising to me that there are so many of them in shopping malls in the US, I know that many malls will fine businesses for not being open when everyone else is (my mom's retail store once was fined $1000 for having their gate down five minutes too early!).

Anyway, up here in the frozen north of Fargo, ND we FINALLY got one just about a year ago. They've had the coupon special twice and the regu- lar 50% off sale at least twice. I've snap[ped up some decent a/c kits each time. Picked up a Testor's B-2 kit for about $13 the last time!

Hope this helps!

The missmarks during half off sales are the best deals!

Tom

While the other posters covered the "how" of HobbyLobby and their pricing and profit margins, I think you're also curious as to how some people managed to get the new Academy 1/32 F-18 Hornets so cheap?

Unfortunately (or fortunately, depending on how you look at it), HobbyLobby (HL) didn't screw up the pricing chain wide, it varied depending on the stores.

According to the posts I've read here and on Hyperscale, some stores had the wrong pricing info, and priced the kits at $80 regular price, then take half off that. Other stores didn't have any pricing info on the kit, so they based the price of the kit on the size of the box, ie: it's about the size of kit X box, and it's $60, take half off that

Hey, I got a 21st Century Toys P-47 at Wal-Mart for $12 a couple of weeks ago, they marked them down wrong, but changed it right after I got mine.

Ken

---------------- Ken Lilly snipped-for-privacy@technologist.NOSPAM.com

(HL) didn't screw up the pricing chain wide, it varied depending on the stores.>>

I'm wondering if someone at HL has been reading our posts here. Dropped in after Saturdays meeting to see what was left on the last 50% off day, and found that way too many of the 'normal' prices were higher than they have been before the sale--few things seemed like a real bargain, although I will admit we walked out with something. I grabbed a Hobbycraft Hummer ($7) and the Revell 1/32 X-1 ($8), wifey wanted the AM F3F-1 (still $14+ after the 50%). All the AM stuff was priced in high 20's and low 30's, which is standard hobby shop high retail, formerly rare for HL. I just don't buy the big high-end stuff, so a $120 Hornet for $50-60 doesn't interest me.

When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return. --Leonardo Da Vinci