Help with hobby shop pointers

[CSXect]

Hi there anyone out there own or work at a hobby shop?

Could use some pointers on that aspect of the hobby business I have been doing some research on venders and retail space rent It it looks more and more like just a crazy dream to have a small Local hobby shop of my own I just had a few basic questions to ask and I figured with the variaty of scales here on this forum I would get a less biased view then on a forum geared to just one scale of modelers.

1.How much is too much for rent? (here in my area it seems to go from $7.00 to $14.00 per square foot per year)

2.If you are just starting out how do you get inventory at the best price? (It seems as the major players in the train business want you to have been in business for a year before they will deal with you.)

3.Should you offer mail order from the get go or add it after being established for a while?

4.What items do you look for in a good shop from a customers view?

5.Would it be a good idea to sublet part of a retail space to a local club or clubs for a working layout(s) to draw people into the store and hobby?

[Chaparral]

I wonder why MRR manufacturers don't have setups like the Amway model, because they are missing a huge market. It may even help grow the hobby.

Maybe franchising too.

Registered MRR clubs could be their own LHS ordering directly from the manufactuers creating a distribution organization equivalent to thousands of LHSs. The sales force would then be made up of hundreds of experts in every aspect of the hobby and the club would profit, albeit on thin margins.

[CSXect]

That is an interesting Idea

Found a free to download book that has a sample business plan and a lot of general info on starting and expanding a business but still need hobby shop specific details.

here are a few more questions

1. How many Ho scalers like the Atheran shake the box kits??? when I was younger I liked to build Atheran and roundhouse kits.

2.What sort of following do Rapido and Kato have as far as starter sets and ready to run items?

[eightyeightfan1]

Sounds like a good idea.
The LHS I go to, the guy runs it out of his basement. Saves the expense of renting, plus he gets the tax credit for running a business out of his house.

As far as your questions.
I like the Blue Box kits myself. But the reason a lot of manufacturers going to Ready To Run more is that the majority of modellers today want to run the peice as soon as they get it home. Plus the manufacturer can ask a higher price. Even the newer BB's are moving more away from the "Shake the Box..Put together in ten minutes", to more for the advanced modeller(adding grabs and stirrups, brake detailing much more finer and detailed).

As far as "Train sets"? They usually sell more during the holidays. Any LHS I've been to only have one or two on the shelf(as they are pricey), and usually the cheaper of the sets. Just enough to get someone started in the hobby.

[CSXect]

I would like to thank everyone who replys to this thread as the input is very helpful.

[CSXect]

I have lots of reading up to do on a business plan still any helpful tips from business owners of any type would be welcome

[nkp174]

I typically go to two LHSes, and occasionally a couple more. My primary shop is the train section of a local toy store. They have more sets than I've ever seen before, and they move them...both the cheapy ones and the Spectrum N&W J with passenger cars types. It seems that the Thomas HO/OO sets move pretty well. My 2nd choice shop was more of a Large, O, and S scale shop...with a collection of HO sets and N scale diesels. I shun full list or near list shops. I also run all my walthers orders through my LHS since they give nice discounts on mail order items...I picked up $120 worth of special ordered NWSL tools for $80 last week...they wouldn't have gotten a dime from me if they didn't discount them.

If I was you, I'd look into getting in with Walthers and Horizon. I'd try to start off with Athearn, Bachmann, Atlas, Woodland Scenics, Walthers, Floquil, and MRC. I'd next try to add Digitraxx and Soundtraxx.

Also, I find that when my LHS gives me $1 gift certificates for every $20 I spend, I find myself always dropping multiples of $20 when I'm in their shop...it further helps promote customer loyalty despite having probably lost $50 in gift certificates

[CSXect]

nkp174, Good marketing ideas. Here in Columbus most hobby shops are in the north end, If I should ever get this off the ground I hope to serve an area from Govecity to the west, the growing south end(if I was any farther south I would be out of the city) and Groveport to the east.

I wanted to be mostly trains but thought about having a hedge bet by having stuff like modern erector sets, linconlogs, Lego trains and lego mindstorms sets, maybe some basic robot kits, a small amount of rc vehicals and slot cars and diecast cars of various scales.

Atlas was my first choice as I could cover N,HO and O lines of trains
Thanks for the input some things to keep in mind for sure

[CSXect]

Anyone who would like to put thier input into this discusion but not on the forum feel free to use the PM(personal mail)option

[scubadude]

Originally Posted by CSXect

nkp174, Good marketing ideas. Here in Columbus most hobby shops are in the north end, If I should ever get this off the ground I hope to serve an area from Govecity to the west, the growing south end(if I was any farther south I would be out of the city) and Groveport to the east.

I wanted to be mostly trains but thought about having a hedge bet by having stuff like modern erector sets, linconlogs, Lego trains and lego mindstorms sets, maybe some basic robot kits, a small amount of rc vehicals and slot cars and diecast cars of various scales.

Atlas was my first choice as I could cover N,HO and O lines of trains
Thanks for the input some things to keep in mind for sure

If your biz plan includes a full-service hobby shop, not just trains, you might look into buying a franchise store....namely Hobbytown around here, there may be others....Franchising has a lot of pros and cons, I would spend a lot of time researching if that is a viable option. I have owned a dive shop for many years, it would take me days to offer all the advice by my experiences, but the best piece of pure business advice would be to understand THOROUGHLY the art of inventory management....

[CSXect]

Thanks for the advice Scubbadude, I worked at a place where they were big on jit(just in time) inventory system and they also had atleast two suppliers for each item and some times three when possible But they were manufacturing where as I would be retail

Feel free to PM me with any advice or experience you are willing to share

I thought about a Hobbyland or Hobbytown but They would pretty much dictate what to carry in the store.

[scubadude]

Found this link HobbyTown USA | Franchise Information

[CSXect]

Thanks for the link to hobbytown

[CSXect]

Originally Posted by scubadude

Found this link HobbyTown USA | Franchise Information

here is something that might interest you Scubadude
DECO Deep Blue Water Scooter, Model# DWS-1502 | Gadgets | Northern Tool + Equipment

[cntown]

Most of the LHS that I go to often have the location close to the action,I mean they are sitting right beside the CN main line.This action goes hand in hand with modelrailroading,so look for a place near the tracks.The one store carries all scales(N,HO,LIONEL,S,G) and is heavy into Thomas (wood,metal) with a large play area for Thomas,plus train-related clothing.The other one is strictly HO and N Scales with train-related books,video's,and magazines.There have been a number of LHS in the area that have gone out of business due to a number of reason's ,some said that the internet has taken away the business as people can get a cheaper price online than in the store so they can't compete at a loss to keep customers,so maybe leasing space in another store might help you build your business up first before going it alone.Since I got into modelrailroading I have wanted to do the same thing but I don't have the money to get going.Good luck