Sad News: Another LHS closing

[PappyD340]

I stopped by my local hobby shop today to pick up some paint and was informed by the owner that they were calling it quits after 26 years. He said he and his wife were ready to retire which I don't blame them one bit, as they said they felt it was time. They have tried to sell it to someone else and have had two or three people interested but just can't work out a deal, even went through a broker but no bites, so everything in the store is 40% off until the end of next month which is when they plan on shutting it down. Yes I bought a kit and a bottle of Alcad chrome and a can of testors wet look clear for $20 and some change a real good deal I thought.

It is still sad that so many LHS are closing, and this one is not because he didn't have the business, so I guess I will have to buy more stuff online now as the next closest hobby shop is about 25 miles and this one is only 5 blocks from the house. So until they close I am going to take advantage of the 40% off everything and try to stock up on some stuff and I don't have to have a one item 40% coupon either!

[martinfan5]

But in this case, its the owners choice to close, which so many LHS dont seem to be getting that choice, least they are going out on their terms and not because they are being forced too

[slusher]

I know you will miss it Larry. I visit a hobby shop when I go on vacation and its a nice feeling...

[High octane]

That sad news indeed, but the hobby business is kinda risky these days. It's WAY different then it was back in the 50's & 60's.

[Modelbuilder Mark]

I have thought that if I could, and I was in a position to do so, I think I would be interested in buying a LHS.

[PappyD340]

But in this case, its the owners choice to close, which so many LHS dont seem to be getting that choice, least they are going out on their terms and not because they are being forced too

Yes that's true, they have had a very sucessful business and it still is, built it from nothing and have expanded 3 times but I guess all good things eventually come to and end.

I know you will miss it Larry. I visit a hobby shop when I go on vacation and its a nice feeling...

I will most definitely miss it Carl, they were so convenient only about 5 blocks from home if I needed some thing quick only about a 4 minute trip and they were such good folks to deal with always cared about their customers probably why they had such a great business!

[PappyD340]

That sad news indeed, but the hobby business is kinda risky these days. It's WAY different then it was back in the 50's & 60's.

Sad yes but I guess nothing lasts forever and I will agree that the Hobby business is a risky venture these days, but when he got into it the big hobby shop in town had just closed for the same reason the owner decided to retire and it left a void and KC kinda picked up and ran with it, but his biggest item is RC planes they probably have one of if not the largest selection of planes, parts and assessaries of anyone in this area.

I have thought that if I could, and I was in a position to do so, I think I would be interested in buying a LHS.

If your interested I could probably hook you up! lol but seriously I might would think about it too if I could come up with the funds but it just ain't in the cards right now, so I will probably be doing a lot of internet shopping!!

[Harry P.]

I have thought that if I could, and I was in a position to do so, I think I would be interested in buying a LHS.

Traditional stand-alone brick and mortar hobby shops are disappearing faster than video rental stores. It's a dying business model. Why on earth would you want to get into a business that's dying? It seems like a pretty sure way to lose your shirt.

[Austin T]

Traditional stand-alone brick and mortar hobby shops are disappearing faster than video rental stores. It's a dying business model. Why on earth would you want to get into a business that's dying? It seems like a pretty sure way to lose your shirt.

Although It may not be realistic that's what I dream of doing one day,owning a brick and mortar hobby shop. I doubt it will happen due to shops dying out but they still exist. If I were to own a successful shop I feel as if I would need to be in an area on the west coast and stock a really nice selection of RC,trains,models and paint/tools as well as general toys and sports equipment to draw in other people.

[Harry P.]

I guess it's possible to open a hobby shop and make a decent living, but the odds seem to be stacked pretty well against that, if all the shops around the country closing their doors is any indication.

There's just no way one single brick and mortar hobby shop can compete with the whole world (the internet). Can't compete on inventory, or selection, or price. The internet has completely changed the way we shop for kits and supplies, and there's no going back. Sure, there will always be a few odd dusty little shops here and there hanging on for their lives, but they're living on borrowed time.

And it's not just hobby shops that are disappearing. The internet has changed the way we watch movies and TV, and how be buy music. Remember the video store on just about every corner and strip mall? Gone. Remember "record stores?" Gone. Now we buy, download, and watch/listen via the internet. And now cable and satellite companies are feeling the heat, too, because streaming TV is becoming more and more of a player in the marketplace. Soon there will be no more "cable companies"... we'll get all of our TV via the internet. Netflix is already beginning to compete against the traditional way we receive and watch TV.

It's a whole new world, and I don't think most traditional hobby shops are going to survive much longer.

[High octane]

Good points Harry as times are changin' overnight. Not always for the better, but they are changin'. A person can ignore the changes up to a point, but sooner or later the changes will catch up to them.

[Modelbuilder Mark]

I guess it's possible to open a hobby shop and make a decent living, but the odds seem to be stacked pretty well against that, if all the shops around the country closing their doors is any indication.

(snip)

It's a whole new world, and I don't think most traditional hobby shops are going to survive much longer.

...

Traditional stand-alone brick and mortar hobby shops are disappearing faster than video rental stores. It's a dying business model. Why on earth would you want to get into a business that's dying? It seems like a pretty sure way to lose your shirt.

There is not doubt that the market place is changing. But, to assume some of these businesses do not exist, let alone do not do well, is inaccurate. Businesses such as arcades for example still exist, despite home video games having been dominate for a couple decades now. They may not exist in the same way we think of them from our past, but they do exist.

Here in the Phoenix valley, there are still several very successful "record" stores, one that comes to mind is Zia Records. They have locations near ASU (which actually hosts artist album signings on a fairly regular basis for artists that are in town). The trick is not not think as the business owner in terms of "records" but music/entertainment. There is a lot of research that shows people still shop "socially". They need and enjoy being out amongst others. Heck, you are employed by an industry that we were told years ago would be wiped out by the internet. "Why will they print books/magazine when you can read online?" was chanted even before ereaders, yet books and magazines still do pretty good, with some books still selling in the millions, despite there being fewer and fewer book stores. We will never move into an online shopping only world. Some people want to touch it, hold it, try it on, check it out whatever. The internet makes things easier, but most of us actually enjoy the social interactions. I have no doubt that if Amazon opened a brick and mortar Megastore in every major market, I bet they would be a huge success.

In a retirement setting, if an individual is on a fixed/guaranteed income anyway, and earns from their investing/retirement income, and the shop would/could sustain itself without looking for a major profit, it would be an extension of the "hobby" in itself to run the store. If it were losing money, then you bet, cut loses and move on. I have been doing some recent studies for the company I work for, and there is a huge percentage of people that have a major decline in health when they retire, and have nothing to do. For me, I have no desire to retire and rot away when the time comes, and that is where my line of thinking was. I am too young to retire at this point, so it is a mute point anyway.

Finally, who knows what the internet will look like in the future. If we keep having growing issues with security, and things like Heartbleed, that online shopping landscape may change as well. The internet is not the be all, end all, to all.

BTW, I am not saying all of this as a dreamy stuck in the past, hobby happy dolt. I am an educated man with, years of experience in the business world, including a Master's in Business Administration. I realize not all businesses need to answer to a shareholder, and just need to provide a "living" to some. If they do that, then they have value.

Edited April 26, 2014 by Modelbuilder Mark

[High octane]

While you make some good points Mark, it's still a BAD bet to get into a brick & mortar hobby shop these days. The odds are "stacked" against you.

[Harry P.]

You'd be better off opening up a blacksmith's shop...

[Harry P.]

Hard numbers are hard to find online... all of the industry-related statistics, reports, projections, etc. are only available for a hefty price, but I did manage to find this from the HMA (Hobby Manufacturers Assoc.)

It's interesting that of the major hobby categories, the only one that showed growth was the one that probably has the oldest demographic–model railroading.

Estimated sales numbers 2010 vs. 2012:

Model Railroad 2010: $424,770,000

Model Railroad 2012: $516,465,000

Plastic & Diecast 2010: $305,777,500

Plastic & Diecast 2012: $258,727,500

Radio Control 2010: $362,912,500

Radio Control 2012: $259,477,500

General Hobby 2010: $377,637,500

General Hobby 2012: $272,867,500

Also interesting is that the one segment we generally assume is "healthy" (RC) took a bigger fall during the two year period than Plastic & Diecast did.

[Ace-Garageguy]

You'd be better off opening up a blacksmith's shop...

Actually, that's a pretty lucrative business to be in in my area, doing everything from custom horseshoes to expensive ornamental wrought iron for high-end houses. And there's almost NO chance that someone will try to compete with you.

[Ace-Garageguy]

Traditional stand-alone brick and mortar hobby shops are disappearing faster than video rental stores. It's a dying business model. Why on earth would you want to get into a business that's dying? It seems like a pretty sure way to lose your shirt.

Mostly true, but I recall most of the hobby shops I loved as a kid were owned and run by retirees who didn't really depend on them for a living anyway. When they died or got too old, the shops closed.

There's a well equipped hole-in-the-wall slot-car track / hobby shop in walking distance from my new digs, only open 3 nights a week, run by an old retired guy just for the love of it. He buys close-out stock, sells it for far far lower than what you can buy online, and the tracks are pretty nice with some spirited racing.

He's been there for several years.

I think it's one of those things that CAN be done if the motivation is strong enough, with some creative thought...kinda like Moebius bringing out beautifully tooled kits fairly close together, when other companies say "it can't be done".

Edited April 27, 2014 by Ace-Garageguy

[mikemodeler]

Dang it Larry, I blame you for not supporting them enough to stay open!

I enjoyed going to KCs Hobby Shop whenever I traveled on I-85 that way. I remember going to a seminar there one Saturday morning with my daughter and we both got a Revell Snap 70 Chevelle as a gift. Bought some paint and a couple of models too.

Their R/C section was pretty impressive and always seemed to be pretty busy whenever I was in there, did notice the plastic kit area kept shrinking over the last couple of years.

I have always said if I could open a hobby shop and not rely on it for a living, I would do it. In addition to dreaming about winning the lottery and having a nice classic 1:1 car collection, I also think about opening a hobby shop and live out my days building cars and trucks!

[PappyD340]

Dang it Larry, I blame you for not supporting them enough to stay open!

I enjoyed going to KCs Hobby Shop whenever I traveled on I-85 that way. I remember going to a seminar there one Saturday morning with my daughter and we both got a Revell Snap 70 Chevelle as a gift. Bought some paint and a couple of models too.

Their R/C section was pretty impressive and always seemed to be pretty busy whenever I was in there, did notice the plastic kit area kept shrinking over the last couple of years.

I have always said if I could open a hobby shop and not rely on it for a living, I would do it. In addition to dreaming about winning the lottery and having a nice classic 1:1 car collection, I also think about opening a hobby shop and live out my days building cars and trucks!

Sorry Mike, I did what I could but I'm just one guy and not to mention my lovely wife gets bent out of shape when I go over my budgeted allowance! Well like I said in a previous post Kirby has done well the last 26 years he actually gave up a very sucessful sales job with Keebler to open his Hobby shop.

[Craig Irwin]

You'd be better off opening up a blacksmith's shop...

There's a lot of Amish and German Baptist around here.