Hobby Shops... Are They Viable Today?

[Brett Barrow]

Having had a little experience in the wholesale and brick-and-morta retail side of this business, I can say that a hobby shop is totally viable today. I had several customers during my stint in wholesale sales who went from an online-shop they ran out of their homes to opening actual brick-and-mortar stores.

The biggest reason most shops close down is not poor sales, it's that the owners want to retire and have no one willing to take over the business.

Walmart isn't an excuse anymore because they don't sell kits anymore. Brick-and-mortars have the advantage of being able to provide customer service that the onlines or big-box stores can't provide. They're people out there willing to pay a little more for that. Believe me, I've spent 12 years working full- and part-time in a shop that sells at full list prices, customers will pay more if you provide excellent service. And once you factor in shipping costs for onlines, they're not that great of a deal. And once internet sales tax goes into effect, the field we be even more level.

[Erik Smith]

Having had a little experience in the wholesale and brick-and-morta retail side of this business, I can say that a hobby shop is totally viable today. I had several customers during my stint in wholesale sales who went from an online-shop they ran out of their homes to opening actual brick-and-mortar stores.

The biggest reason most shops close down is not poor sales, it's that the owners want to retire and have no one willing to take over the business.

Walmart isn't an excuse anymore because they don't sell kits anymore. Brick-and-mortars have the advantage of being able to provide customer service that the onlines or big-box stores can't provide. They're people out there willing to pay a little more for that. Believe me, I've spent 12 years working full- and part-time in a shop that sells at full list prices, customers will pay more if you provide excellent service. And once you factor in shipping costs for onlines, they're not that great of a deal. And once internet sales tax goes into effect, the field we be even more level.

Good insight Brett. I actually like shopping at hobby shops and it's good to hear something good...

One thing hobby shops can do is satisfy the human need for instant gratification - want a model and don't want to wait for days? Yeah, only one option - buy it at a brick and mortar. Same with paint and other supplies you run out of in the middle of a building session.

I do see people buying kits at HTUSA (highest prices in the area), so price is not always the main consideration.

[sjordan2]

I think you could say that HobbyTown USA counts as local hobbyshop, since each one is a proprietor-owned and operated franchise. Their overall operation seems to have been pretty stagnant in the last few years, and they have pretty sophisticated resources, but the service quality and inventory vary widely from store to store.

Franchise Units

YEAR U.S. COMPANY OWNED (0) CANADIAN / INTERNATIONAL (0)

2013 156

2012 150

2011 147

2010 151

Edited December 17, 2013 by sjordan2

[Greg Myers]

There's nothing like the feeling of walking into a shop with well stocked shelves and being greeted by the owner with a big smile.

Then walking down the aisles (more than one ) full of neat stuff, new kits you haven't seen, old kits from a collection and maybe that kit you planed on getting.

When you pick up that kit that caught your eye and you are surprised at the weight of the box, you check out the side panels only to discover all the options you didn't know came with the kit. What a great feeling, something that doesn't come to you on line.

Now you take it to the counter to pay and the friendly owner tells you about another new release you didn't know about. Now that's what the hobby shop experience is all about.

I can tell you about this because I have done this many times at the two hobby shops I frequent here in Arizona, one in Phoenix and one in Tucson.

Edited December 17, 2013 by Greg Myers

[Rob Hall]

I like going to my LHS...it's only about 10-15 min from my office, so it's easy to stop by after work. I frequently buy domestic kits and supplies from them, but the markup on imported kits is such that even w/ shipping buying from Japanese vendors is a substantially better deal. There are others in the area, incl. one close to home that I visit on occasion as well.

[DrKerry]

I think it can be a of any of those as a stand alone, or even in multiples combination.

Agreed

[Austin T]

It seems like hobby shops survive on RC these days. Planes, cars and helicopters. The revenue generated from that allows them the capital to stock models and other oddball stuff for the people who will actually come in and buy it. At least that's how it is around here.

I hate to say so,but that is far from the truth. It will cost the owner 800 for a car that MSRPs at 1000 and sets for eight months. Not to mention Amazon sells the same car for 750.99. The myth that RC holds up hobby shops is one that I believed in as well, then I worked at one. I might even go as far to say RC is a contributing factor to the closure of LHS's, but not drastically.

Edited December 17, 2013 by Austin T

[jrherald420]

The biggest complaint about most hobby shops is the cost of the kits. Being a single income family with a 2 yr old i can not see paying 5.00-10.00 over what Hobby Lobby charges at a normal price not using a 40% off coupon. Most have a great selection of spray and bottle paints that i will buy but not the over priced kits. There in one hobby shop in my town that is 95% R/C. They have their kits priced about 1 or 2 bucks lower than Hobby Lobby and they keep all the newest ones stocked. Its not a huge selection but it stays stocked with fresh new kits.

***FYI Walmart has models here in Smyrna TN, the section is always trashed and most of the kits are 22.00-27.00 each.

[jrherald420]

I hate to say so,but that is far from the truth. It will cost the owner 800 for a car that MSRPs at 1000 and sets for eight months. Not to mention Amazon sells the same car for 750.99. The myth that RC holds up hobby shops is one that I believed in as well, then I worked at one. I might even go as far to say RC is a contributing factor to the closure of LHS's, but not drastically.

Austin the main reason that your HS is closing is the rent he pays. He is in a major location and it costs lots of money to stay there (100.00 a sq ft and its a 3000+ sq ft building= $$$$$$). If he wanted to relocate to an older part of town his customer base would follow him to the new location. He is just done with the business and thats it. He gave up a long time ago and is tired of dealing with it.

Edited December 17, 2013 by jrherald420

[jrherald420]

I can say from an Ex-r/c racers view that Hobby Town had a ###### selection of r/c's. You are only as good as the product you have on hand. I only drove Losi, X-ray and AE and they carried none of that there. It was only Traxxas and the cheaper ###### i would only let my son play with. If there was a local track closer than Nashville he would be hopping in that department.

Edited December 17, 2013 by jrherald420

[Daddyfink]

One of the things we all really do miss is the "Cheers" feeling when hanging out at the LHS.

The other store does not have that, unless you are an R/C guy

[Quick GMC]

I hate to say so,but that is far from the truth. It will cost the owner 800 for a car that MSRPs at 1000 and sets for eight months. Not to mention Amazon sells the same car for 750.99. The myth that RC holds up hobby shops is one that I believed in as well, then I worked at one. I might even go as far to say RC is a contributing factor to the closure of LHS's, but not drastically.

I suppose it depends on where you are. We have only one shop and they stock stuff for the local track so it helps them a lot. But you're riight, if they are sitting on the inventory for a while, it isn't doing them any good.

[Harry P.]

One of the things we all really do miss is the "Cheers" feeling when hanging out at the LHS.

I'll admit that the "Cheers" feeling is something the internet can't provide. Obviously buying online is a solitary and anonymous activity. But man, when I think about the fact that I can instantly find anything online, find the cheapest price among all sellers, and have it on my doorstep in a few days with only a few mouse clicks... that's pretty hard to pass up.

And when that UPS or FedEx truck stops in front of the house and that big box is left on my doorstep... that's a great feeling!

[lordairgtar]

I had a storefront for over 15 years. I closed because I couldn't compete with the Walmart down the street.

I must have not been a "smart" store owner. I find that statement to be a little insulting Tom.

I live near a city with several Walmarts, KMarts, Targets, ad nauseum. We also have two big LOCAL hobby shops and they thrive. We have some specialty shops for the train guys and the armor guys. They do well. They all offer help, places to have contests, keep shelves stocked with cool things, not afraid top special order, offer discounts to clubs, support clubs and loaners alike, and some have an internet presence. Yes, one store closed, but it had bad stock, bad attitudes behind the counter, stupid pricing structure and trashy dirty unkempt stores with wet floors and odors. I can't speak to your experience, but I know what's going on here in Milwaukee, and it's awesome. I will continue to support local biz when possible. When I go to our shops, even just to look around, I am greeted like an old friend. With a combine Metro area encompassing Milwaukee and Waukesha counties , we have over 2 million people, so you can see just how many big stores we have, but the locals can hold their own. I think in regards to WalMart, they had limited choices where the independent stores had variety, service, and smiles. I mean, you never found Tamiya or Hasegawa model or Floquil paints or different adhesives besides the ubiquitous orange tube of Testors, AMT and Revell kits and Testor's paints....and not much of those in any meaningful numbers.

[Brett Barrow]

There's not a lot of margin on R/C cars and trucks since most shops discount them so much from the outrageous "nobody pays that" super-high MSRP. R/C parts, on the other hand, can be a gold mine. Nobody really discounts parts that much, even the onlines. R/C parts and paint racks are the lifeblood of most hobby shops.

The first thing I check out when I enter a hobby shop is the paint racks, if they're well-stocked the shop is most likely doing well financially. A shop with empty paint racks is not doing well. I correctly predicted the closure of a couple LHS's when saw they stopped refilling the paint racks. Within a few months they were closed.

[High octane]

I hafta agree with lordairguitar as I know and frequent the same hobbyshops that he talks about. Because of the high price of gas, I don't visit those hobby shops as much as I like to, but they are my FAVE shops with great selections, staff, and prices.

[Greg Cullinan]

We have a couple that have been in business for a long time and still hanging. Of course I am in a big city so I'm sure that makes a huge didference. And one does stamps/coins and the other is big with dungeons and dragons or something similar. I don't think models is eithers life blood.

[Jordan White]

Where I am, there is a small selection of good hobby shops left. When I was younger, I knew of 2 that I always wanted to visit when we were in the area. One was a Hobbytown, the other I can't recall the name. They both had excellent kit selections, though I believe maybe the HT more so.

A little later on, the one closed leaving HT as the only one I knew. Soon after that, the HT closed and I found another one closer to where we lived. That one also had a great selection of kits, so I would go quite a bit. Then a few years back I found a store even closer to me (King Kong Hobbies) that has an okay selection (much better than the Micheal's in the area, Walmart has no kits, and there are no Hobby Lobbys here (though the one I've been to in Michigan had the same selection as Micheal's)), but still not as good as the HT. Of course, just recently, that HT closed (or moved, I'm not positive on that) and another opened in the same town, but down the road and in a smaller shop. This shop has a small selection similar to King Kong, albeit with a few more options.

Luckily for me though, I found two other places in the Cities that have good reviews, Hub Hobby and Scale Model Supplies (the latter of which has the largest kit selection in a store that I've ever seen). They are both a bit of a drive, a little over a half hour, but I do enjoy going to them from time to time.

The thing is though, they don't usually have the kits I want to build, unless it's a newer kit or perhaps one I didn't know about. Most of the time I'm finding kits online that appeal to me (mostly Japanese kits and older AMT kits). It's really a draw as to where I get kits from, since on the one hand local stores allow you to see the kit in person and take it home right away, while on the other hand online purchases allow you maybe a better selection, lower costs (especially with eBay), and the ability to purchase in the comfort of your own home.

Just my observations.

[Metalmad]

Since moving to So Ca 20 years ago I found one LHS in the Valley that does carry a lot of kits and new release kits & they have special ordered kits for me also. They also have a good supply of paints , glues and scratch building materials and tools. They have always been very helpful with any questions about model kits etc but one thing that they do not carry much of or if any are the aftermarket parts like Detail master etc. But all and all this shop stays busy and they also carry a lot of RC cars and Airplanes and Trains which they are always busy with. Me personally I like the LHS since I like to see what I'm buying even if it is a few dollars more but I still do buy from Wal mart once in awhile when I do see a kit I like or need it to rob parts from for a build.

Edited January 10, 2014 by Metalmad

[ToyLvr]

Seems like this topic keeps coming up frequently here on the Forum, only under different titles.

Same ol' discussion; Internet fans think that's the only way to go, whilst a lot of folks still like the brick-n-mortar shops("support your local business, etc etc).

Reminds me of an article that appeared in a major 1:1 car magazine many years ago where the topic was whether we should all be buying American cars (and thus supporting American jobs) vs. buying foreign cars. As you can imagine, it resulted in a lot of heated comments in "Letters-To-The-Editor" on both sides of the issue.

The best response that I saw, and remember to this day, is "Real Americans buy what they *WANT* "

Same thing here. Doesn't matter who manufactured the kits or supplies, or what the retail source is, if we WANT it, we're gonna get it.

It's great that we live in a country, and in this particular period of time, where we have a choice, and we're free to exercise that choice.

Let's go build something....

[martinfan5]

Seems like this topic keeps coming up frequently here on the Forum, only under different titles.

Same ol' discussion; Internet fans think that's the only way to go, whilst a lot of folks still like the brick-n-mortar shops("support your local business, etc etc).

Reminds me of an article that appeared in a major 1:1 car magazine many years ago where the topic was whether we should all be buying American cars (and thus supporting American jobs) vs. buying foreign cars. As you can imagine, it resulted in a lot of heated comments in "Letters-To-The-Editor" on both sides of the issue.

The best response that I saw, and remember to this day, is "Real Americans buy what they *WANT* "

Same thing here. Doesn't matter who manufactured the kits or supplies, or what the retail source is, if we WANT it, we're gonna get it.

It's great that we live in a country, and in this particular period of time, where we have a choice, and we're free to exercise that choice.

Let's go build something....

You sir have won the interent

Edited December 18, 2013 by martinfan5

[charlie8575]

On my last visit to Spare Time Shop...

I got to visit with my friend Andrew (someone I now consider a friend) who's the manager.

Picked up a Moebius Chrysler 300B.

Checked out some paint because I could see the actual color, not rely on computer resolution that's frequently waaay off.

And had a fellow wander in that taught both of us all about 3-cylinder 2-stroke Saab engines and how to prep them for racing and then have fun blowing the doors off of everything in sight, including the cops. Did you know those things could rev to 15,000 RPM? Talk about a chorus of angry chainsaws!

You can't do that online.

Sure, I'll buy stuff online if I can't obtain it easily locally, but where all the shops near me offer a club discount, I don't really need to shop online for a better deal, unless I might say, purchase an extra item to make the shipping costs hurt less.

What's really neat about hobby shops, and I've seen this all my life is you'll have some absolutely fascinating people walk in and talk about all kinds of neat stuff, like the guy above to war stories, work stories that relate to modeling, and all sorts of other discussion.

The boards are nice, but it doesn't replace human interaction.

Neither does online shopping.

Charlie Larkin

[Dr. Cranky]

I think it's a combination of a lot of factors, which is why HOBBY LOBBY (it's really not a hobby store, it's more of a crafts store) decided to thrown in everything, including cheap furnishing, under the same roof. Between the crafts and the art supplies and jewelry, they get lots of traffic. Most mom and pop hobby shops have catered to the RC car, plane, and boat markets. It's also a bad economy getting worse every year as jobs dry up and we keep allowing companies to go abroad to set up shop.

[Fabrux]

On my last visit to Spare Time Shop...

Hey, I've been there!

[Art Anderson]

Brick and Mortar hobby shops will continue to survive as well as thrive as long as they are well-capitalized (meaning they are able to have and maintain a well-stocked, comprehensive inventory), understand, live and breath merchandising, and pay attention to their bottom line.

It's pretty much always been thus.

Art