Attn: local hobby stores. Please earn my business

Sep 11, 2003 59 Replies

Hi, all.



I am starting an N-scale layout, and wanted to share an experience. Read on, especially if you own a hobby store.



I dropped quite a few nickels on Kato unitrack at a local dealer, and asked for a discount. Said dealer refused with a "we are not a discounter". I bought the stuff anyway, because I like hobby stores. I am not pleased that said store has not replaced the stock I bought six months ago, though, because when I go in, there is very little N scale to browse. Browsing is a big part of what I like about brick and mortar stores. This lack of stock has dropped the worth of window shopping in that store.



Last Xmas, a friend of mine asked a local hobby store to order the Bachman McKinley explorer. He felt like an utter idiot for paying full retail, because he saw the invoice, and knew that they paid half of what they charged him for that one phone call, and two day wait. He did not mind giving them a fair return, but he would have gotten it faster, cheaper, and with much less bother by just going on line. Before that, he was hoping I would find a dealer and leave an Xmas list with him.



I went into three hobby stores recently, trying to settle on a maker of DCC units. None of them had ever wired up a layout with it, and all said "it is great for HO, but it is not really ready for N". My local N-scale club disagrees, and Tony's Train Exchange knows a lot more about DCC than these sellers. Again, I am not angry with the dealer, but if I get better advice from Tony's about DCC, why am I paying a brick and mortar dealer.



The moral - these stores are not sure what they are selling, and are willing to see a lot of money walk out the door. This is not a great way to stay in business. You do not have to beat the discounters at every level, but you _do_ have to beat them at a level important to your customers.



So, if you do run a store, consider carefully what you are selling. Remember that your customers can and will save money by buying on line, with less frustration to boot. Further, some of that info on line is better than what you have. Ask yourself why, then, someone would come into your store?



For me, it should be service, a source of expert advice, and the fun of browsing. I am still trying to find a store where I can go in and discuss what I need for my layout, and how construction is going. In return, the store makes sales, because they know what I am likely to need. That is worth a premium.



Scott


Scott, If you live near Chicago, I can hook you up with a LHS or two that are very good in N.

Try Caboose Hobbies in Denver, Colorado .../V

About 96% of everything is crap. That goes for hobby shops too, brick and mortar or online. Some crap can be improved upon some can not. Fortunately we have one of the rare 4%ers in our area and its a trains only store with prices on many items that are close to the online and magazine discounters. They know trains, they understand DCC and are very helpful. So there are some real good shops out there. This store has about 70% of the 96% of model railroad crap that's available but also has about 80% of the 4% of the good model railroad stuff. I've been buying code 83 Walthers turnouts from them on a regular basis. Walthers turnouts are crap but can be improved upon and the LHS showed me an even quicker, better way to fix them. I think I know how you feel. I have lived in some areas that only had stores specializing in overpriced crap with no knowledge on how to make something useful out of crap let alone dare to sell a product in the 4% category with out a big price, a big deposit and a long wait. Bruce

not if you're trying to save money...At least in their store. They have a great selection, but the prices were nothing to brag about. My local hobby shop at least gives a 20% discount on most items.

Hi, Scott. You raise valid points and I agree with them. I have been in model railroading for a long time and have developed my knowledge base along the lines that interested me. I do not know everything, nor does my boss. I work 2 days a week at Joe's Hobby Center, in Farmington Michigan {Shameless plug}. Fortunately my boss and I know different things about the trains. The store also sells RC cars, boats and planes. He hires people who know the hobby they sell. I am in the train dept., obviously. In the few months that I have been at the store, many customers come back time and again and pay full retail because the people who sell to them might not be experts, but at least knowledgeable about the general hobby, as well as being a 'people person'. I enjoy working there, and that is a big part of the success of the store. We all enjoy selling our hobby for others to enjoy.

What Mark doe'snt know everything? But he always has an anwser to my questions.

Shameless plug nothing, Joe's is the best hobby shop in Michigan. I wish a few more local hobby shops were as good as Joes.

time and again and pay >full retail because the people who sell to them might not be experts, but at least knowledgeable about >the general hobby.

I go there again and again, I've spent thousands there. The help is always great and because of my repeat business I usually get a discount.

Bob

You just happen to ask the right questions.

Thanks. Can I show him this? course, he might have to raise the prices. (G)

If you come in on a Tuesday or Thursday between 11 and 3, let me know. I won't be back, however, until the first Tuesday in October.

The local hobby store is a franchise affair, and its inventory of small but necessary HO items is at best spotty. In addition, the ignorance of the hired hands concerning model railroads is no less than sweeping. I have found the folks at Walthers to be quite competent and very helpful, and stuff arrives here in mid missouri in just a few days. The shipping charges do mount up, but so far at least, they don't charge sales tax on stuff delivered outside their home state. I did try one of the firms that carry large ads in Model Railroader (with lower prices than Walthers, but I'm not sure the $$ i saved was worth the at best businesslike behaviour of the telephoone order takers.

Ok Bruce so where is the shop? Let the rest of us in on a good thing.

discounters.

Being a business man myself, I can see both sides of the hobby shop/customer thing. I have watched the store owner spend an hour selling decals to a guy he know bought his unfinished loco from a discount flea marketeer. Service or sucker???

Hobby shop ownership is probably REAL tough.

The market is so diversified with product, scale and road names, it has got to be very difficult.

I fortunately live in a town where one of our shops specializes in detail parts and state of the art items. He is also very reliable at special ordering, and will do it (for me at least) with a phone call and no money down. I do all I can to support that shop and will always pay full pop (competitive price anyway) because it provides such great service.

On the other hand, that shop is not into DCC, so I use reliable mail order companies that also happen to be discounters. A win win situation.

I once tried to deal with another local shop that has a great store front and is quite entertaining to look around because they stock a lot and display it well.

I called to order a high ticket kit once and was required to stop in and drop off and prepay full MSRP for a *special order* item. They wanted me to pay full price AND use my money to work with. That is when mail order retail becomes a LOT more convenient and cheaper.

If a shop provides good service, I support them all the way.

My 2 cents worth. Doug

Discount Trains, Dallas, TX. If you ever are in the DFW area its definitally worth a visit.

Bruce

=> I =>am not pleased that said store has not replaced the stock I bought six =>months ago, though, because when I go in, there is very little N scale =>to browse. Browsing is a big part of what I like about brick and mortar =>stores. This lack of stock has dropped the worth of window shopping in =>that store.

What percentage of the stuff you browse will you actually buy? If the store has to get in ten items in order to sell one to a browser like yourself, the store will lose money.

IOW, just how much are you willing to pay for your window shopping?

=>I called to order a high ticket kit once and was required to stop in =>and drop off and prepay full MSRP for a *special order* item. =>They wanted me to pay full price AND use my money to work with. That =>is when mail order retail becomes a LOT more convenient and cheaper.

Well, I provide a discount of "special orders", because it's instant turnover. All I want from you is your VISA number (which will be used when and only when the item comes in.)

Doug, what specifically would you recoommend that the shop have done differently to provide good service? Not having you stop in and prepay (it sounds like they didn't take a credit card number over the phone)?

In rough numbers, how big was the "high ticket?" $100, $500, $1000, $5000?

I'm going to jump in here.

A shop in Portland, Or., "Vic's Hobbies", was about to get my business for a pair of Bachmann Spectrum Russian Decapods, undecorated.

I've traded at the store for about 8 years. Probably sent $ 4 - 6 thousand over that time period.

Guy behind the counter, with whom I've had a nodding "friendship" allowed as how having none in stock, that he'd have to order then from Walthers and needed my credit card. The price was going to be the Walthers full catalog price. With my card charged that day.

I pointed out the ads in RMC for that product, at a substantial discount off "Walther's list".

Guy was shocked when I said "No thanks" and walked out.

I got them for $ 89.00 each from an RMC advertiser.

I have a real problem with LHSs who want to use my money to charge full manufacturer's list to "special order".

In my area now, Hobbysmith and Bob's Whistlestop get my business, though both are a 10 - 15 mile further drive.

Both discount.

If a LHS wants to earn my business, it needs to understand the concept on not using my capital to fund their operation.

-- Jim McLaughlin

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Jim, do you keep records of your hobby spending?

I *try* to keep my hobby expenses on my credit card so I have a handle on what I'm spending. I think costs still sneak up on me because I'll pick up a can of M.E.K. at the hardware store or some "really cool clamps" that I don't expense on the card.

I guess what I'm specifically asking: How did you come up with the $4-$6 thousand number? Do you track your specific expenses? Does your hobby shop have some sort of "punch card" (etc.) system that tracks your expenses? Are you basing it on what you see on your layout? How did you develop the $4-$6 thousand?

Was it a wild-assed-guess?

Hey Bruce, you seem to be an expert on what qualifies as crap in the hobby... what meets your criteria of "crap?"

Frank: How did you come about taking a job at the store? I'm sure many modelers dream of such a job, and would like to hear how you were able to connect up on such an opportunity.

I'm going to jump in with both feet here, and clue some of you in on real life.

Brick and mortar stores cost money in terms of rent, utilities, employees, etc.

Most of the discounters in the magazines are what we call "basement bombers" who work out of their house, and, therefore, have no overhead.

My partner and I used to own a store in Nashville, TN, and I can tell you that the 20 to 40% markup afforded by most of the stock we carried was barely enough to keep our heads above water, much less make a profit!

Brian

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