Allied Model Trains in Culver City downsizing, moving across the street

I'll chime in here, mostly because, even though I don't do much modeling anymore, as it turns out, Allied is the closest model train store to my home.

While the store is great to browse, buy rare or brass items, it has never been the place where I wanted to spend my money. And I've easily given them over $1000 of business over the past 10 years.

First of all, they are closed on Sundays, except for the Christmas season. So, despite being 3 miles from home, I am rarely able to get there (save for Saturdays) when they are actually open for business. I can understand SOME types of businesses being closed on Sunday, but a hobby oriented store???? Just silly.

Second, everything in the store is list price or higher. In these days of the internet, not to mention decades of mail order, they might just consider that some folks would buy more from them if they got at least a small discount.

Third, attitude. There was an "air" about the place that said, "if you aren't going to spend hundreds of dollars today, don't bother us." A friend, who lived 25 miles from the shop, had a problem with an Kato engine (not a $9 Athearn box car), brought it back, and was given asked to leave simply because he commented about having to make the drive. I've known this guy for many years, and he is not one to incite such treatment. He was asked to leave by Mr. Drucker himself, bye the way.

So, maybe, just maybe Allied's method of business has something to do with it.

Regards,

DAve

Reply to
DaveW
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CNJ999 wrote: [...]

NB that 40% off MSRP is the "standard discount". An internet store that is selling at this discount is buying at 50-60% off MSRP, sometimes better than that. So, a $100 item bought at $50 and selling for $60 provides a 20% gross profit - just barely enough to survive, if you have a low overhead. Bought at $40 and selling at $60 provides a 50% gross profit, which is pretty good for a hobby/toy shop.

HTH

Reply to
Wolf

Volume becomes important too though when you have fixed costs to meet. A

20% markup would be pretty good IF you were selling hundreds of that item. But if you are only selling a few, even the 50% markup doesn't generate a sufficient volume of real dollars.. or what ever currency unit you want to use.

What kills me is that the small things that the hobby shop stocks are the things that become so expensive. It was almost standard fare for me to pick up a couple of packages of Kadee couplers during each hobby shop visit. Now, because of shipping, I'm forced to either pay $5 a package or by ten packages at a time. While this might work for Kadee couplers, I'm not interested in buying large quantities of parts that I'll only need one of. The premium prices that we paid for those nice engines sitting on the hobby shop shelves also helped pay for those $1 and $2 parts, paints & other small items sitting on the shelves.

The guy who sits back and says that hobby shops need to lower their prices to compete aren't looking at the total picture. How long do you think your local grocery store would stay in business if they only dealt with bread & milk on which they only make a penny or two per sale?

dlm

Reply to
Dan Merkel

Did this store discount prices? Did it do mail order, train shows, ebay? If not then it is dying not the hobby.

Reply to
curtmchere

I see you are back even though you said you were quitting RMR?

Are you putting your money where you mouth is and starting a train business if it is such a great deal?

Reply to
curtmchere

Reply to
curtmchere

Reply to
curtmchere

Reply to
curtmchere

His Ebay ad selling the business indicates he has maintained a 45% profit on his gross sales.

Perhaps it was greed that drove customers to the internet.

Drucker's.

Reply to
RSweeney

No discounts. Poor service for the non-wealthy.

Nice building though.

Reply to
RSweeney

I worked in LA for about ten years and stopped in at Allied from time to time. I was never able to get the attention of a salesperson! They were all busy talking to someone else. I got the impression that there was this exclusive club, and if you weren't part of it, you could just *uc* off. The customers went to the internet because of the attitude. It's not cheaper, it's not more convenient, but it is not as off-putting as trying to get the attention of someone who refuses to talk to you.

Reply to
video guy - www.locoworks.com

When I lived in LA I used to visit Allied from time to time, but I always felt unwelcome. There was a distinct air of "club members only" about the place. In all my visits I never succeeded in getting the undivided attention of a salesperson. A very snooty place. If they went out of business it's because they didn't want the business.

Reply to
video guy - www.locoworks.com

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