Hobby Lobby

[Tom Geiger]

It's interesting to see how far people will go to get a discount! It's obvious that Michael's puts out that 40% - 50% off coupon as a loss leader to get people into the store. No doubt they are hoping that someone who uses that coupon also will buy a bunch of other things at retail.

When I go into the store and use the coupon on a single cheap item, like Zap-a-gap glue or a can of Testors spray paint, no doubt they didn't make any money on that transaction. But guys who go in with a wife and two kids, each on line buying one item with the coupon, is pretty much abusing the program. Yea, it's 'legal' and the store allows it, but if everyone did that, the program would be cancelled.

And that's probably why model kits sell for pretty much hobby shop list price at Michaels. I'll bet if they did away with that coupon, kits could be sold cheaper.

[2000-cvpi]

It's interesting to see how far people will go to get a discount! It's obvious that Michael's puts out that 40% - 50% off coupon as a loss leader to get people into the store. No doubt they are hoping that someone who uses that coupon also will buy a bunch of other things at retail.

When I go into the store and use the coupon on a single cheap item, like Zap-a-gap glue or a can of Testors spray paint, no doubt they didn't make any money on that transaction. But guys who go in with a wife and two kids, each on line buying one item with the coupon, is pretty much abusing the program. Yea, it's 'legal' and the store allows it, but if everyone did that, the program would be cancelled.

And that's probably why model kits sell for pretty much hobby shop list price at Michaels. I'll bet if they did away with that coupon, kits could be sold cheaper.

It's not abusing the system at all. Abusing the system would be removing the price tag and switching to a lower price to cheat and steal. Those stores still make a profit on a kit if I use a coupon. They buy in a much larger volume than a lhs, so the price is lower. I also guess that you don't spend any time talking to the staff at Hobby Lobby. The staff here have told me more than once that a lot of customers use coupons. Even to the point that people come in day after day and use the coupon. Half of the items that they seek are always on sale, picture frames and man cave decorations see two examples.

[Danno]

Yes, there are a few things not eligible, like class fees. But model kits and model-related supplies are definitely eligible for the discount.

MUCH friendlier avatar, Harry. Thanks!!

[Tom Geiger]

Corey, I never said it was stealing. But it is an abuse of what the store wants for the program. I'm sure they factor in the number of people who don't buy anything but one item with the coupon. But if that number slides too far, they'll cancel or modify the program. So enjoy it while it lasts. A kit at 50% of their retail is about their break even point as a full case direct customer of the manufacturer.

[martinfan5]

Corey, I never said it was stealing. But it is an abuse of what the store wants for the program. I'm sure they factor in the number of people who don't buy anything but one item with the coupon. But if that number slides too far, they'll cancel or modify the program. So enjoy it while it lasts. A kit at 50% of their retail is about their break even point as a full case direct customer of the manufacturer.

It states, "one coupon per day per customer", not"one coupon per family or household", so a family going into the store and each family member using a coupon is well with in the stores policy on their coupon. Now if that family was doing it every day, sure, you bet I would say its abuse, but if its one time, I am not really sure we can call it abuse .

[Tom Geiger]

It states, "one coupon per day per customer", not"one coupon per family or household", so a family going into the store and each family member using a coupon is well with in the stores policy on their coupon. Now if that family was doing it every day, sure, you bet I would say its abuse, but if its one time, I am not really sure we can call it abuse .

And yes that would be following the 'rules'. But still my comment that if everyone did that, they'd stop doing the coupons! Hopefully the modeling community is small enough not to totally upset their apple cart!

Don't get me wrong, I'm not pointing at anyone. I'm big into saving money and coupons myself. I seldom venture into Michaels (I don't have a Hobby Lobby local) without a printed out coupon. Even with the coupons, I seldom (okay once) buy a kit. I manage to buy my kits even cheaper than that through hobby sources. Once past that, I'll buy glue or paint.. if not, I even give the coupon to some lady with a full cart rather than waste it. My wife and I go out to eat about once a week and seldom without a coupon. But you have to admit, lining up yourself, the wife and two kids, each with a kit (and nothing more), is pushing it!

[george 53]

Tom, I got a E-Mail sale notice from Squadron Shop Hobbies, They had the Trumpeter 65 Falcon Ranchero kit for only 19 bucks ON SALE thru the E-Mail notice only. So I bought it. Next time I got ANOTHER sale E-Mail, it was in sale, BUT NOT the SPECIAL e-Mail sale, and it was now 54 from 59 bucs! How can THAT be a sale when I just got it for 19????? ANYWAYS, if they sold it at 19 bucks, I doubt VERY MUCH that the took a loss. So it makes ya wonder what the mark up PER kit really is? I don't think it's even close to cheating to use a coupon THEY provide for you.

[2000-cvpi]

Corey, I never said it was stealing. But it is an abuse of what the store wants for the program. I'm sure they factor in the number of people who don't buy anything but one item with the coupon. But if that number slides too far, they'll cancel or modify the program. So enjoy it while it lasts. A kit at 50% of their retail is about their break even point as a full case direct customer of the manufacturer.

Tom,

How do you know what Hobby Lobby's coupon policy is or thier intended sales goal for coupon use? Based on several facts about my area HL, they continually have sales on items that are greater than the 40% off coupon. Frames, fabric, decor items etc are always on sale. Hobby Lobby has tremendous buying power, I doubt that they pay more than 25% of retail for any kit. Hobby Lobby can buy for less than a lhs could based on the volume that they buy.

There is no way that Hobby Lobby would cancel the coupon program, they would lose way to many sales from the general public. The program has been around way to long and many long time customers are used to the coupon. Modelers make up such a small percentage of their sales that they don't matter. All it takes is looking at the store space they dedicate to models compared to boat themed knick knacks. Using four coupons for four people in separate orders is not against their policy, and until it is against their policy, it is unfair to think so.

Ps, not at all meant to be hostile, argumentative or mean, just debating. Sometimes it's hard to type without emotion being read into the words.

Edited October 24, 2013 by 2000-cvpi

[Casey]

There is no way that Hobby Lobby would cancel the coupon program, they would lose way to many sales from the general public. The program has been around way to long and many long time customers are used to the coupon. Modelers make up such a small percentage of their sales that they don't matter. All it takes is looking at the store space they dedicate to models compared to boat themed knick knacks. Using four coupons for four people in separate orders is not against their policy, and until it is against their policy, it is unfair to think so.

Not sure about other areas of the country, but HL only started offering the 40% off coupon within the last year to year-and-a-half. Before that they used to have coupons for specific areas or sections of the store (crafts, hobbies) or specific items (picture frames, yarn, etc.). I would guess any coupon brings more people into the stores than would come if they offered no coupon, and the fact that Michael's, Jo-Ann, Hobby Lobby, etc. continue to offer their own (and some accept others') coupons tells me the coupons are effective in getting people into the stores, and purchasing product.

Michael's isn't going OOB because John Doe goes in once a week with the 40% off coupon and buys a $24.99 Revell kit for $15.00, even if he takes Mrs. Doe and John Doe, Jr. with him, all with 40% off coupons in hand, buying a kit. Think of all the people who go through the checkout lanes without using a coupon, too.

Long story short, if the coupons weren't effective, they wouldn't issue them.

[Tom Geiger]

Corey / George -

There is no argument here. Basic marketing theory says that any company offering a loss leader of one item at 40-50% off is hoping to get more business from you at retail. It's also common sense.

I do know what the bottom line wholesale prices are for model car kits. I'm not publishing numbers here since it's proprietary information. Corey, you are correct in saying that Hobby Lobby buys kits cheaper than a local hobby shop due to volume. You neglect to recognize that most local hobby shops buy kits from a middleman called a distributor. That distributor buys the large volume from the manufacturer, and sells small quantities, sometimes as low as one kit of each product to the local shops, who pay a markup for that service.

George as far as the Trumpeter kit, somebody sold that one at a loss. These kits didn't sell well so somebody Squadron / Trumpeters US representation, sold these as a close out to open up storage space or recoop some of their investment.

Geez, all I said was that if everyone over used the coupons to the point that the store lost money on the program, they'd be forced to end or modify it. And that's just common sense!

[Harry P.]

Geez, all I said was that if everyone over used the coupons to the point that the store lost money on the program, they'd be forced to end or modify it. And that's just common sense!

Exactly.

The coupons are for one reason only: to draw people to the store. The theory is that the average shopper will buy more than one item, thereby offsetting any "loss" that HL takes on the couponed item (which really isn't a loss at all, as they can sell a given item for 40% off and still make a profit on the item, much as a car dealer can sell you a car at "invoice" but still make a profit on the deal). If the coupon program was seen as a drain on the bottom line, they would stop the program.

BTW... the "fine print" on the coupon states that the 40% off is good on any ONE regularly priced item (not an item already marked down), one coupon per customer per day.

So if a family of 12 came to HL and they all had a 40% off coupon, theoretically every one of those family members could go through the checkout separately with their coupon, and that family of 12 would each be able to get 40% off any regularly priced item that day.