Another Casualty Of The Economy

[93Z34]

I went today to one of the local hobbyshops to see what they might have and hopefully pick up some Evergreen plastic I needed. When I pulled into the parking lot I was greeted with a huge sign announcing their closing and immediate liquidation of all hobby merchandise.

Dejectedly I went in and looked around at what was once a decently stocked hobbyshop. Today, almost empty shelves, empty paint racks, old, rummaged through kits and a whole lot of nothingness greeted me. I talked with the owner who basically laid it out in plain english. The money for the hobby on his end has simply dried up. He simply can't afford to buy all the new releases in the hopes his customers will buy the products. Apparently he went out on a limb and purchased several of the new releases only to have them sit and gather dust on his shelves for months. BUT, when he said he marked the kits up anywhere from 35-45%, that right there told me one of the reasons why his inventory wasn't moving.

As I browsed what was left of his inventory, I saw kits like the reissued 1/12th scale '57 Chevy for $65.99. The Trumpeter ALF Pumper was priced at $75.99, and other kits wore similarly high price.tags I dunno, maybe it's just me, but with the way things are going with today's economy, I would think that MAYBE when these shops start feeling the pinch of not selling their inventory, they MIGHT try lowering their prices just a tad. I don't expect these shops to give their stock away at cost, but for crying out loud, $76 plus tax for the Trumpeter kit?

I tried to talk with the owner and let him know my thoughts on the whole situation but it was advice that was probably too little too late. I asked him how much further ahead he was selling his stock at 75% off rather than lowering the original prices a few dollars to entice his shoppers to part with their money.

I did pick up some kits today from what was left of his inventory, and I got them at 75% off the original prices. Did I get a good deal today? Sure I did. But ya know what? I would have gladly given up the great deals today and paid a little lower original price if it meant keeping this store in business. In the end, I don't really see where anyone has come out ahead in this deal. Sure, I got some kits that I wanted at a very cheap price, but in the long run, not only myself, but the other modelers in my area lost another hobbyshop due to the tougher economic times and the devout resolution to sell these kits for as much money as possible, all in the hopes of turning a quick buck, and making a bigger profit per sale.

So, with that being said, I got the following kits today:

Tamiya Mini Cooper 1275S MkI

AMT 62 Impala SS Convertible

Revell '63 Chevy Impala 2-n-1 "Donks"

Revell '67 Plymouth Hemi GTX 2-n-1

Revell '48 Ford Convertible 2-n1 "Good Guys"

Including tax, I spent a total of $42.57 for these kits. There are still some that I'd like to get that are left, but I'm happy with these for now. I was hoping to find a '62 Impala SS Hardtop instead of the convertible so I could convert it to drag trim, but at least I scored the '63 Impala to turn into a Super Stock car. I'm not into the lowrider stuff for that car, so it'll lend itself nicely to a detailed Strickler or Proffitt Super Stock.

Anyways, sorry for the long post...just thought I'd share my mixed fortune today.

[BigGary]

My only choice for a "local" hobby shop is a Hobbytown USA store that I voiced my opinion over before. the sad part is that hobby shops in general are quickly becoming a thing of the past. those stores or shops that support the R/C side of the hobby seem to be doing well and holding their own however. Micheals now having a pretty nice selection since thier past reset makes shopping there for model kits pretty nice, especially with the coupons.

Dave

When I lived the yankee portion of VA I had 2 choices for model stuff, Hobby Town and a 1 man hobby shop. I found HT's prices high but when shipping was added from one of the big online sites, I saved $2. My experience when shopping on line is that shipping will kill you. Today I started to order Soft Touch Polishing Pads from Micro-Mark. the order went away when they wanted $8.95 to ship a $6.40 item that weighed a couple of ounces tops. THAT'S RIDICULOUS!! I called their Customer Service & told them why I canceled. The nice lady on the phone said she would pass that on.

I'm convinced many of these companies make most of their profit on shipping.

Gary

Edited August 5, 2009 by BigGary

[MikeMc]

I'm convinced many of these companies make most of their profit on shipping.

Gary

Are you serious or just nuts???

If you are serious could you please explain????

[elan]

I haven't purchased a kit in a hobby store in years. I can find most everything I need online, granted I have a large stash and don't buy many kits anymore. I can alway beat the price of the LHS, even if it is only by a buck or 2. All I buy at the LHS is paint and I wait until I have a 40% off coupon. Tmes like these you need to save where you can.

[iBorg]

I truly think that many companies DO make the profit off of shipping. First they are able to do most of their business out of a warehouse or storage facility rather than a storefront. Storefronts are much more expensive. They're able to reduce their store personnel with a few people to pull stock and prepare it for shipment. They do need someone with internet web site skill. Once the site is created, up keep of the site is an issue.

There is NO reason I should pay for their employee to pull an item and putting it in a box. Do I pay for the clerk putting the item in a bag? Then there is the BS about paying for shipping materials such as boxes. The US Post will provide boxes free for priority mail. To charge me $4.00 to put something in a box (allowing $3.00 for a box and packing material) is criminal. I know such practices have prevented me from paying from several on-line retailers and auction vendors.

Mike

[Marc @ MPC Motorsports]

When I lived the yankee portion of VA I had 2 choices for model stuff, Hobby Town and a 1 man hobby shop. I found HT's prices high but when shipping was added from one of the big online sites, I saved $2. My experience when shopping on line is that shipping will kill you. Today I started to order Soft Touch Polishing Pads from Micro-Mark. the order went away when they wanted $8.95 to ship a $6.40 item that weighed a couple of ounces tops. THAT'S RIDICULOUS!! I called their Customer Service & told them why I canceled. The nice lady on the phone said she would pass that on.

I'm convinced many of these companies make most of their profit on shipping.

Gary

When you order from places like Micro Mark, it is not cost effective to purchase one small item like those polishing pads. Looking at their website, they have a flat $8.95 shipping charge for orders $50 and less, and only a buck eighty more for the next $50. When I buy from them I try to group my purchases in order to maximize my bang for the shipping buck.

Most mail order shops work the same way.

[nascarfan]

Are you serious or just nuts???

If you are serious could you please explain????

If you have alot of shipping volume you can get a Discount on shipping charges. The good thing about the discount is any joe schmoe can go to FedEx or UPS.com and get a quote and that will be what you are charged but most people are not aware of the discounting companies get.

I set up a discount up with the Company I work for thru FedEx, so yes it would be easy to profit from shipping charges.

Jason.

[FujimiLover]

I'd like to add something to this economy thing. I'm sure money is tight, no doubt about that. But I feel the internet has partial blame in "our" local hobby stores closing down. It's just too easy to go on-line and find all the rare and special goodies, and even plain old every day goodies as well. It's much nicer to wait at home for a while and receive packages in the mail and open theme.

Oh sure, I'd much rather enjoy going to a greatly stocked hobby shop and feel the items my self before purchasing theme, but internet is much easier and really is the LARGEST hobby shop in the world. There isn't anything you can't find on-line compared to local stores.

For me, I've never had any really awesome local hobby stores. My best hobby store experience has been on trips to Europe during high-school spring-brakes and visiting the hobby shops in Paris, London, Switzerland, etc'.

I do love our local Complete Games and Hobbies hobby shop, but it is too far and out of the way to drive there weekly.

I still think the internet has a lot to do with hobby stores closing down cause nobody comes to the store anymore. Especially when gas-prices rise up!

That's just my two pennies.

[93Z34]

I'd like to add something to this economy thing. I'm sure money is tight, no doubt about that. But I feel the internet has partial blame in "our" local hobby stores closing down. It's just too easy to go on-line and find all the rare and special goodies, and even plain old every day goodies as well. It's much nicer to wait at home for a while and receive packages in the mail and open theme.

Oh sure, I'd much rather enjoy going to a greatly stocked hobby shop and feel the items my self before purchasing theme, but internet is much easier and really is the LARGEST hobby shop in the world. There isn't anything you can't find on-line compared to local stores.

For me, I've never had any really awesome local hobby stores. My best hobby store experience has been on trips to Europe during high-school spring-brakes and visiting the hobby shops in Paris, London, Switzerland, etc'.

I do love our local Complete Games and Hobbies hobby shop, but it is too far and out of the way to drive there weekly.

I still think the internet has a lot to do with hobby stores closing down cause nobody comes to the store anymore. Especially when gas-prices rise up!

That's just my two pennies.

And to expand on that subject Marc, I will give my two cents worth. For quite some time the argument was debated about supporting our locapl hobbyshops vs. buying online. Now, I can see if you can get the same things at your local shop for the same, or maybe even a couple dollars more than you could by getting your stuff online. But, when your shop charges an outrageous amount of money for kits and supplies, it becomes a question of economics. Last night I went to the 1 local shop we have left and I actually took the time to write down some prices of kits and supplies being sold there. Follow along please.

AMT 2009 Dodge Challenger - $31.99

Revell Black Widow '57 Chevy - $29.99

Revell '49 Mercury - $32.99

Revell Home Depot 2007 Monte Carlo - $28.99

AMT Autocar re-release - $79.99

Trumpeter American LaFrance Eagle Pumper - $99.99

Model Master One Coat Laquer - $8.99/can

Model Master Bottle Paint - $4.99/bottle

Tamiya Spray Can Paint - $9.99/can

Now, maybe this gives you an idea as to why the internet companies are so popular these days. There is no way i will support a shop that is gouging the consumer as bad as this. These prices are totally outrageous and unacceptable. Prices like this are exactly why the local hobby shops are falling by the wayside in favor of internet stores and suppliers.

The argument of supporting your local shops no longer hold water with prices like this. There simply is no argument to be made when you have shop owners who rip people like this oon a regular basis. While I know not all shops are like this, there are still way more than there should be, that's for sure.

Sorry for the rant, but in this case I think it's justified.

[58 Impala]

Wow 93Z34, I thought Hobbytowns prices were high! That guy is shooting himself in the foot.

[93Z34]

Wow 93Z34, I thought Hobbytowns prices were high! That guy is shooting himself in the foot.

The sad thing is, when I bring the ridiculous pricing to the owner's attention, his response is, "That's ok...someone somewhere will buy them eventually."

He never lowers his prices and always has an excuse as to why they are so expensive. Needless to say, he has more dust on his shelves than anything else.

[Randy]

he marked the kits up anywhere from 35-45%, that right there told me one of the reasons why his inventory wasn't moving.

40% in the norm. Figure that if your rent/costs are $2500 a month, and you want to pay yourself $2400 a month, you need to average $18,000-$20,000 a month in sales just to break even with a paycheck and replacing the stock. With the risks involved with running your own business $28,800 a year doesn't sound so good, and if you want a day off, you need to hire someone, and that comes out of your pay.

As to his prices.....

'57 Chevy for $65.99.

MSRP $79.95

Trumpeter ALF Pumper was priced at $75.99

MSRP $99.95

Prices are from Stevens International

I went today to one of the local hobbyshops to see what they might have and hopefully pick up some Evergreen plastic I needed. When I pulled into the parking lot I was greeted with a huge sign announcing their closing and immediate liquidation of all hobby merchandise.

Dejectedly I went in and looked around at what was once a decently stocked hobbyshop. Today, almost empty shelves, empty paint racks, old, rummaged through kits and a whole lot of nothingness greeted me. I talked with the owner who basically laid it out in plain english. The money for the hobby on his end has simply dried up. He simply can't afford to buy all the new releases in the hopes his customers will buy the products. Apparently he went out on a limb and purchased several of the new releases only to have them sit and gather dust on his shelves for months. BUT, when he said he marked the kits up anywhere from 35-45%, that right there told me one of the reasons why his inventory wasn't moving.

As I browsed what was left of his inventory, I saw kits like the reissued 1/12th scale '57 Chevy for $65.99. The Trumpeter ALF Pumper was priced at $75.99, and other kits wore similarly high price.tags I dunno, maybe it's just me, but with the way things are going with today's economy, I would think that MAYBE when these shops start feeling the pinch of not selling their inventory, they MIGHT try lowering their prices just a tad. I don't expect these shops to give their stock away at cost, but for crying out loud, $76 plus tax for the Trumpeter kit?

I tried to talk with the owner and let him know my thoughts on the whole situation but it was advice that was probably too little too late. I asked him how much further ahead he was selling his stock at 75% off rather than lowering the original prices a few dollars to entice his shoppers to part with their money.

I did pick up some kits today from what was left of his inventory, and I got them at 75% off the original prices. Did I get a good deal today? Sure I did. But ya know what? I would have gladly given up the great deals today and paid a little lower original price if it meant keeping this store in business. In the end, I don't really see where anyone has come out ahead in this deal. Sure, I got some kits that I wanted at a very cheap price, but in the long run, not only myself, but the other modelers in my area lost another hobbyshop due to the tougher economic times and the devout resolution to sell these kits for as much money as possible, all in the hopes of turning a quick buck, and making a bigger profit per sale.

So, with that being said, I got the following kits today:

Tamiya Mini Cooper 1275S MkI

AMT 62 Impala SS Convertible

Revell '63 Chevy Impala 2-n-1 "Donks"

Revell '67 Plymouth Hemi GTX 2-n-1

Revell '48 Ford Convertible 2-n1 "Good Guys"

Including tax, I spent a total of $42.57 for these kits. There are still some that I'd like to get that are left, but I'm happy with these for now. I was hoping to find a '62 Impala SS Hardtop instead of the convertible so I could convert it to drag trim, but at least I scored the '63 Impala to turn into a Super Stock car. I'm not into the lowrider stuff for that car, so it'll lend itself nicely to a detailed Strickler or Proffitt Super Stock.

Anyways, sorry for the long post...just thought I'd share my mixed fortune today.

[93Z34]

40% in the norm. Figure that if your rent/costs are $2500 a month, and you want to pay yourself $2400 a month, you need to average $18,000-$20,000 a month in sales just to break even with a paycheck and replacing the stock. With the risks involved with running your own business $28,800 a year doesn't sound so good, and if you want a day off, you need to hire someone, and that comes out of your pay.

As to his prices.....

'57 Chevy for $65.99.

MSRP $79.95

Trumpeter ALF Pumper was priced at $75.99

MSRP $99.95

Prices are from Stevens International

Keep in mind, the prices I listed were at the 50% off mark. So double the prices I listed and you'll see why this shop went under. At 50% off they were way closer to the MSRP than what he was selling them for at full price.

[tbrooks387]

i dont think of a hobby town, michaels, or hobby lobby as a local hobby shop. so i rarely shop there unless im desperate. i prefer online shopping, and ive never felt that i was being overpriced on the shipping. i am a ups driver, and i like the salary i make, so im all for you guys using both the local and online shops.

there is a small hobby shop i found in stockbridge, ga about an hour from were l live. and the model prices were about the same as ive seen online. so that shop will get some business from me once a month. they had about 1 million rc planes in the shop, so im thinking model cars arent there big money maker. lol

[lordairgtar]

Sorry to hear of your shop's demise. I guess we are blessed here in the Milwaukee area (I'm 18 miles away) as our LHS's seem to be doing well. Always busy and the two that I patronize, the one in particular sells other hobby things and has an art supply area that I use as well for my art supplies. The other shop has a internet presence. I guess it all comes down to smart marketing. I spoke with the owners of one shop and they say they are doing good. BTW, I always manage to purchase something when I visit because not buying would be like going to the club to hear a DJ or band and not buying drinks.

Edited August 9, 2009 by lordairgtar

[roadhawg]

One of my pet-peeves is people blaming anything that goes wrong these days on the "economy". This hobby shop didn't go under because the "economy" was bad....it sounds like it went under because of poor business planning. Sometimes, its better to lose a little money than it is to not sell anything at all. Let me explain...........

Back in the 80's, I raced R/C cars for awhile....dirt oval. Really fun, but expensive. The guy that ran the hobby shop where I primarily raced sold the car kits really cheap. He only made 5 or 10 bucks on each kit. I asked him how he could sell 'em so cheap. He said he didn't really care if he made money off the kits, but when somebody bought one, they also needed controllers.....and batteries....and bodies.....and tires.......and more powerful moters......and hotter batteries....and stronger, faster parts......and more aggressive tires....get the idea? He made his money on parts and accessories.

If I had a hobby shop today, In my model department (we GOT to sell other hobbies and crafts, right?) I'd sell the kits fairly cheap, but make SURE I had a great assortment of detailing accessories, paints, wheels and tires, decals, and so forth......maybe even host scheduled contests just to make sure everyone need those parts.......

But what do I know?

[93Z34]

I agree with alot of what you're saying Tommy. I think a constant trend we're seeing is these shops pricing themselves out of business by trying to mark their kits up by such a high percentage. Personally, in this day and age, I don't see a shop existing by just selling models, even if they do stock a wide variety of aftermarket items. If you stop and think about it, you would have to have a pretty large modeling community locally to be able to sustain a shop like that, with a HUGE inventory to boot. I think sometimes we forget when we're on forums such as this that we're not all neighbors just down the streets from eachother, but for the most part are located in different parts of the country and even the world.

As for stocking a wide array of aftermarket items, that concept in itself is a great idea. However, if you realistically stop to think about it, there are only a handful of aftermarket suppliers who could cater to stocking a hobbyshop fully with their line of products, and even then it might be a stretch. Companies like Model Car Garage, Slixx Decals, Wetworks Decals and a couple others are the only ones who come to mind. A shop owner would also have to invest a considerable amount of money to stock a shop fully with aftermarket parts and even then it's a risk that you'll sell what you order.

As for the economy, I can't see how anyone can sit here and say it hasn't affected this hobby. It's affected every aspect of our lives and I think we can all say we've changed our way of doing things for the sake of saving money. Let's face it. For the most part, this hobby isn't at the top of our priority list when it comes to paying bills. Food, rent, car payments and the like rank higher than this hobby. There is no way the shop owners aren't feeling the pinch as well when they see their customers scaling back on their purchases and passing on items that maybe they would have bought in the past. I know personally, I would have never got the kits I did last week from the shop that went out had they not been marked down so much. I MIGHT have picked up one or maybe two of those kits at the regular price, but even then I highly doubt it. We're all looking for ways to make the most of our money and in the end, let's face it, the hobby we love so much often suffers from our lack of extra spending money. How many of us have scaled back on traveling to shows that we attended regularly in the past? How many of us are finally getting to those kits we bought years ago that have been sitting on our shelves because we can't afford the cost of the new kits coming out? I know I am. I guess in a way the poor economy has helped alot of us get to those long awaited projects we've been putting off for so long.

[Fuel Coupe]

Tommy

We had a hobby shop here that did just that and he flourished. He sold kits at walmart prices and "broke even" on them but made his money on paints supplies and aftermarket accessories. He did really well until his customers drove him into the ground by special ordering items and never paying for them. He had a small walk in closet full of stuff that was special ordered that he had to eat or send back. I blame him in part for not taking the money for orders up front.

I always paid upfront with him because I saw what his customers were doing to his business. We talked at great length about how he was losing money and he said "it will turn around". He closed up and has since gone to delivering parts for a local auto parts chain. Its sad really that people took advantage of him and he allowed it to happen in order to keep friends. Well, His friends are gone and so is his business. It pissed me off too when his "buddies" couldn't understand why he closed up. Don't commit if you cant pay. Because the economy isn't hurting just you.......

[Matt LeBlanc]

The guy Txrat is talking about was a real good guy.He let people take advantage of him.I bought stuff from him.It was an hour drive 1 way for me.But that's all i had at the time.

[FujimiLover]

And to expand on that subject Marc, I will give my two cents worth. For quite some time the argument was debated about supporting our locapl hobbyshops vs. buying online. Now, I can see if you can get the same things at your local shop for the same, or maybe even a couple dollars more than you could by getting your stuff online. But, when your shop charges an outrageous amount of money for kits and supplies, it becomes a question of economics. Last night I went to the 1 local shop we have left and I actually took the time to write down some prices of kits and supplies being sold there. Follow along please.

AMT 2009 Dodge Challenger - $31.99

Revell Black Widow '57 Chevy - $29.99

Revell '49 Mercury - $32.99

Revell Home Depot 2007 Monte Carlo - $28.99

AMT Autocar re-release - $79.99

Trumpeter American LaFrance Eagle Pumper - $99.99

Model Master One Coat Laquer - $8.99/can

Model Master Bottle Paint - $4.99/bottle

Tamiya Spray Can Paint - $9.99/can

Now, maybe this gives you an idea as to why the internet companies are so popular these days. There is no way i will support a shop that is gouging the consumer as bad as this. These prices are totally outrageous and unacceptable. Prices like this are exactly why the local hobby shops are falling by the wayside in favor of internet stores and suppliers.

The argument of supporting your local shops no longer hold water with prices like this. There simply is no argument to be made when you have shop owners who rip people like this oon a regular basis. While I know not all shops are like this, there are still way more than there should be, that's for sure.

Sorry for the rant, but in this case I think it's justified.

Let's also not forget the cost of gas to drive to your hobby shop depending on how far away you are from the store. The two best ones I like to go to are much further down town, almost an hour's drive from where I live. Not exactly, but it sure feels like it anyway from up in the Black Forest which is east of the Air Force Academy in Colorado Springs, to down south Colorado Springs "DOWNTOWN" it can take half the day just to get what you want.

While I miss the old time hobby stores of going in and seeing first hand your items before you buy, internet shopping is much more relaxing. Especially when you don't have to deal with the jerks that are on the roads these days.

Everything is done on-line these day's. We're now even starting to see ordering your favorite Pizza Hut on-line and pretty soon you'll be doing grocery shopping on line as well. Hmmm, scratch'n'sniff computer screens?

[george 53]

Our LHS is a Riders shop, it's a chain around here thats been around for quite a while. There IS a Hobby Lobby opening up about a mile away from them, an I was wonderin, what are they like? Do they cater to Model car builders, or are they just R/C junk? I've noticed alot of indy hobby shops seem to go for R/C stuff, but not alot of plastic kits. Is Hobby Lobby a good place to shop? I've never been to one,so ANY advice would be appericiated.

[Harry P.]

I think it might vary a little from store to store, but the local H.L. here has 2 aisles of models: plastic cars, ships, planes, etc. and diecast car kits. They have a basic supply of Testors paints (no Tamiya), they sell airbrushes and basic model supplies like glues, tools, foil, some K&S stuff, etc. Basically not as well stocked as a full-blown hobby shop, but really not too bad for a generalized "crafts" store.

[E St. Kruiser50]

.....Hmmm, scratch'n'sniff computer screens?

[george 53]

THANKS,Harry! I was wondrin about them.Our Micheals only has about 10 feet of models, cars, planes an stuff. It should be kinda nice to have a choice of where to shop. I DO shop at model-roundup alot, but thats mostly cazza Jack.He's a pretty cool guy, an he HAS given me VERY good deals on shipping before, so outta loyalty an appericiation I tend to shop there alot, Plus, he's got some NICE resins available too!

[Harry P.]

Another reason that the old-fashioned stand-alone hobby shop is an endangered species, a reason people often forget, is the simple fact that the customer base for these shops has been steadily shrinking over the years.

Back in the "good old days" of the 60s, model cars was a hobby that was mostly enjoyed by kids. In the days before computers, the internet, video games and satellite TV, kids had far fewer things to do with their spare time, and a lot more of them picked model cars than do the kids of today. Also, the model car hobby in general has transformed from a kid's hobby to one that's now populated by more adults than kids. Many of the kids who got into model cars in the 60s grew up to be the adults that are still in the hobby today, but along the way the number of kids who got into the hobby for the first time got smaller and smaller over the years.

It's pretty easy to see that when the overall customer base shrinks over time, it takes fewer and fewer suppliers to meet that falling demand. Fewer modelers today than in the past equals fewer hobby shops that can remain open and make a profit. Those that try to hang on have two choices: raise prices in order to cover the loss of overall business, or lower prices in an attempt to draw more or new customers. But when the number of potential customers is actually steadily shrinking overall, it's awfully hard to attract more business to your store! The only realistic option is for the LHS to jack up prices in order to overcome the loss of business... and having higher prices than the online stores only drives even more people to shop online. It's only a matter of time then, that a LHS will be forced to close.

It's true that there are successful hobby shops still in business here and there, but overall, they're a dying breed. The only way hobby shops can possibly make a comeback is if the model car hobby in general makes a comeback, and the number of people involved in the hobby actually grows instead of shrinks. That's a fairly unlikely scenario.