Local hobby shop is closing.. another victim of the economy :(

[mkrusedc]

I think Jerry has the right idea. I am going to retire with my hobbies. Either a hobby shop, Bonsai sales over the internet or something to keep active and fun....

[JERRY2KONE]

Yea thats me alright. My wife calls it temporary retirement. I have worked every single day of my life since I was 14, starting off as a golf caddy. I quit school to persue full time caddy work in order to bring home the bacon for the family, and I have been doing just that ever since.

Anyway when we got married in 2004 I had to travel with her to Korea and could not work that year, because we were going to be shipped off to Belgium within ten months. Then I had to wait for a security clearnace and that took over a year to acquire, even though I had a top secret clearance in the military that did not matter to the State Department. I worked for two years there at USNATO, and then took custody of my 3 youngest kids, so the wife and I decided that I needed to stay home and become Mr. Mom for them for at least 6 to 12 months. Well I have done that for 6 months now and I am over it. We whipped the kids into shape and now I am ready to become a working man again. Within reason of course. I do not have to work, but we have plans for our retirement and I want to speed things up a bit finanacially.

So the good news is that I just received word from DC that I am going to become a Goverment contractor doing background investigations. I decide what cases I want to do and I control my own hours working out of our home. So that will be a first for me, and I am loving the idea of that. So all of my hard work is finally paying off big time. The kicker is that I can easily earn $100K+ a year just gathering data. So now I am set. I have almost everything that a man could ask for after putting up with a lot of Crapp for so many years. I am loving life right now, and my hobby room is not only my sanctuary of peace, but my wife is always looking for ways to help me improve the atmosphere and asking if I need anything to make things easier in the shop. She got me a 19" flat panel TV for Xmas just for the shop. So yes I do think I have the right idea. Finally. Thanks for saying so MK.

I would love to open up an R/C shop/track with a partner, but we still have 6 more years of international travel to get out of the way first. Trust me I am enjoying that as well. Owning a shop and running a race track would be a great way to spend my retirement years. I have some pretty good ideas that I have seen and learned along the way. Location, location, location is the key.

As one who works at a "successful" hobby shop, I thought I would chime in on a few things that I think makes a hobby shop work. Think of these as suggestions for those of you who want to open a LHS.

1. Stock as many parts as physically possible. It doesn't matter how many kits you sell, (cars/trucks, planes, helis, boats, or whatever), if you don't keep stock parts, and hop-ups in stock.

2. This kind of works with 1. Diversify as much as possible. We sell, planes, helis, boats, cars/trucks, models, diecasts, rockets, trains, pinecars, slot cars. There are employees who are knowledgeable in all of them too. I'm mostly into cars, but we have a "plane/heli guy," and a "train/slot car guy," and a "model guy."

3. Cater to what your customer base is. In our case, there are not a lot of racers, mostly bashers, so stock what they want. Therefore we do not stock a lot of Mugen, Kyosho, etc. because we sit on inventory and that costs money.

4. You do not need a track to be successful. We do not have a track and it works out very well for us. Unless you have a well known track that can bring in big races, the owner is probably losing money on the track part, more than likely they have it because they really support the hobby.

5. You have to be competitive with online pricing, whether that means really low margins on kits/RTRs, or buying in major bulk and storing kits. If you look at all our kits, they are priced within $5 of Tower/Horizon, or any other major online seller. As you all know, replacement parts are where there is any margin anyways, Electronics and kits do not make a shop money.

6. Your employees have to be excited and knowledgeable about their job. They have to want to work there. I've been to plenty of other hobby shops where the employee didn't know what they were talking about, or didn't want to help customers. Minimizing turnover will help with that as well. I've been working at this LHS for 4 years and I was the newest employee until just a few months ago.


Sorry for the long post, but as I think of more things I'll add it to the list. Right now I have to go to work at my LHS.

[mkrusedc]

Billy the LHS that James and I were talking about above, Hobby Hut does just what you posted. They have, trains, helis, cars, trucks, models, pine wood derby, etc. (except high end BL) They are knowledgable in almost all areas and even though they sometimes do not have a large parts inventory they will get any order witihn a week at no extra charge. Oh, and they do not have a track.

[ssspconcepts]

I hate to see any small business go under...heck, when I buy stuff from Mike, I don't use his cupon codes...because in the grand scheme of a $2K-$3K build, the $20 that I save in the parts that I buy from RCM Mike is minimal...and I want to see him in this business for a long time. However, with regards to the LHS situation there is another side to the story. Example: I am the market to buy a new Jammin X1 CR buggy. I have checked several LHS in the DFW area and the prices range from $519-$559 for just the buggy kit. I can get the same kit online for $374. I don't buy this crap that the LHS profit margins suck. I also recently converted all of my RCs over to Ofna (except my G3R) because I want some standardization of parts and so it would be easier to buy parts locally--no good there either because all they really stock is TRAXXAS. Its kind of irratating when I go into the LHS and they look at me like I am speaking in a foreign language when I politely ask if they have a 5mmX109mm turnbuckle. And forget about asking them for any info about hardcore brushless applications. I travel all over the country for work...and I have lived a lot of different places...and I am here to tell you that it is the same song and dance everywhere. A lot of...no scratch that...MOSTof the LHS that I have visited don't even know what a Neu motor is. They say "ya, all we sell is new motors." If you ask them about brushless conversions they say "ya, I heard something about Novak puttin some kits out but we dont sell them yet."

Now I understand that that we are in the "high performance" and somewhat exclusive side of the RC hobby...BUT, I also understand that owning a hobby shop IS NOT A HOBBY. It is a profession...which obviously some rely upon to put food on the table and a roof over their head. And like any profession, and in particular, retail businesses...it is in one's best interest to pursue higher levels of performance, knowledge, skill, and capability...and to do so with alacrity and a good sense of customer service. Maybe you all have the benefit of living close to better hobby shops than where I have found myself visiting and if that is the case then I apologize to those shop owners for offending them. But until I find such a place, I will continue to drive right on past and buy my RC stuff online. This is just my 2 cents.

[ssspconcepts]

So that means you paid what it would have cost had you bought it online Ahem...sorry that was a cheap shot. I am really sorry guys. I don't want to turn this into a political discussion or a discussion on work ethics...but I don't have a lot of sympathy in the era of laziness and government bail outs. Most often is the case (as Linc pointed out) businesses fail for a reason.

Originally Posted by pedeboi364

:( my lhs is closing in 3 months. Killer deals (got $270 worth of stuff for $150) but it's the only one near me, the next is like a hour away... maybe I'll get to have a tower supersavers account tho

[JERRY2KONE]

No offense taken at all. I agree with you Sir. Businesses fail for a reason, and more likely than not it is because they are lacking in some way to do what we expect them to do as professionals just as you so elequently stated. Laziness is the key along with complacency that comes over time of just squeesing by, putting forth the minimum of effort into what you do for a living hoping that it will be enough. That is the problem with a lot of American thinking these days. I love our country, but there is just way too much of just that going on and we are letting things slip through our fingers to other countries like Mexico, Korea, and China.

If a hobby shop has to close its doors it is because it chose the wrong location up front, and because they failed to supply the local /economy with what they need due to not paying attention or asking enough questions of its customers. Look at MonsterMike here. He listens to the requests that pile up in here and he comes up with a solution for us with custom one off hybrid stuff. That is pure business sense of wanting to please your customer base and support whatever it is that they want &/or need. UE started out that way, but forgot the main reason they got into the business in the first place. Retail sales, customer service has to be number one or you are going to loose out, and your business is going to fail. Being nice is just not enough in todays society. Give the people what they want or pack up shop and go home.

There was a really good program on AFN TV last night that revealed a lot of information about why the automakers and oil companies conspired in keeping battery and electric car technology down in the USA, and it was all for the sale of oil, and keeping us dependant on both the oil, and the repair parts from the auto makers. It all mades perfect sense to me after seeing what they did an how they did it. Now we are trailing everyone else as a nation, because they got greedy and tried to keep it all for themselves thinking that they could hold inevibility back like a tsunami rolling through. I am a realist, and I believe that you get back what you put into it.

[Finnster]

So Ive been thinking more about this and what caused them to fail, and I've decided all is not lost for the hobby

More than anything I think it was run just poorly enough that its such a competitive business that the store just wasn't good enough, and a slowing economy made wounds far worse. The guy had just moved and expanded to a much bigger and better location, in part to increase the offerings (rockets, "science" crap, etc) in the store and gain visibility, but...

The stuff they had and introduced was not all that unique nor well priced, nor in great variety. You get most of it online for less, and sometimes had to or special order it bc it wasn't in stock. I had to order lots of things special as he didn't carry them. Even stuff such as paints. Sold shells, but barely any paints. Forget about airbrush paints. I had some airbrush paints ordered, but eventually just went to Micheal's instead to buy createx paints for way less.
Bought one set of tires there in 3 yrs as they were too much over tower. Rims were ok, but hard to find the right size/style. Wrong hex or offset.
If it as a revo, savage or tmaxx part, it was in stock. Other stuff, IDK, hit and miss.

Now I know you don't want to tie a bunch of money up inventory that doesn't sell, but to a certain point, if people are just going to expect you don't have the parts, they are not going to bother going. Esp when they will have to special order or buy online anyway. Basically that is what I did when I no longer had any TRX, losi or hpi veh. And might as well just buy the stuff he did carry I needed as I could just up the amt on Tower/Amain and use a bigger coupon and save shipping.... (Another hobby shop that closed last year was like that, "would you like to special order it?" "Uh, no. NM". They did have a popular 1/10 scale track on site as well. Not enough to save them.)

Lastly, customer service. As said he claimed he would use great CS service to make up for the higher prices to drive people to the store. Too bad his CS wasn't that great. Little stuff added up I think. He could be a real d1ck to kids coming in the store, and talked to them like they didn't know what they were doing, or they were just there to steal stuff, or both. Plus he had a bit of that NJ smartass attitude. Kids may not have a lot of money to spend, but they do have parents, and often get hooked and become future customers.
Personally, I bought my Sav XL there. Now I paid more there than I would have online (by a bit too,) but A.) was promised and expected some help w/ the nitro motor as it was my first time using one. B.) felt weird always coming in to look at them, not buying one, stop looking, then show up looking for parts one day lol. Plus thought I'd throw him a bone.
Ok, so I had a spare motor from another model I got on ebay and later sold off as a roller. Motor was fine and used it a bit, but I'm a nitro n00b and let it get hot a few times, 300F, so didn't feel right selling it. Better to keep practicing tuning on that motor and sell the K5.9 as new and bring down the total cost of the kit some. Ok.

Now I've been running the Sav w/ the motor for about a liter and its doing alright, but working it out still. Go to run it one day, and it will not start. 45min and nothing. I was so pissed I was ready to quit nitro for good. But, notwanting to give up so easy (and knowing it was something prolly simple) and went to the LHS to cash in my "one free tune w/ veh purchase."

So I go in, explain the situation. He's giving me some advice. Try buying a new glow plug and try to start it myself out back. Nothing. Go back in. He tells me, "yeah, I can have the repair guy/nitro guru look at it, it'll be $35. "
-"$35?! What about the one free tune? I just bought this 2 weeks ago."
"Well its not the stock motor. You put in a diff motor."
-"Dude, its a stock losi 427. You sell those things too. This isn't some exotic motor."
"Sorry there is nothing I can do. I would still have to pay the repair guy."

At this point now I'm really pissed. I've been a loyal customer for 3 yrs, (and he often reminds me of this) paid more than I need to for the truck to support the store, and the end of the day, it shouldn't matter if they are turning needles on a 5.9 or 427. Its all the same, and quite easy. (why he didn't offer to do it personally IDK.)

Fine then. Screw it, I'll figure it out myself. Took the truck home. Turned out to be the glow ignitor batt was low. Knew it was something dumb. That was in Sept, and I've barely bought anything from there since. Just a gallon of fuel, and one a-arm. Everything else online or the one other lhs (more fuel lol.)

So I guess the moral of this incredibly long story is that successful stores have to first have good prices and good inv, and secondly have good enough CS that you don't chase customers away. If that makes your margins tight, then wth do you want from me. I'm sure there is someone else out there who can do it cheaper and friendlier.

[Arct1k]

I know the feeling i hate going to my lhs - some of the guys are nice but the owner is in it for the cash...

A couple of time i have relied on them i.e. calling up to check they have the part in stock or ordering it in for me I drive down there 10 miles and guess what he didn't place the order and there inventory tracking was wrong! So I'm out of racing / bashing for the weekend...

Anyway - any closing down bargains :)

[ssspconcepts]

Right on target...successful LHS ingredients:

1. Fair prices
2. Inventory
3. Good CS
4. Activity base (i.e., indoor/outdoor race track)

Back when we lived in WV is when I built my first brushless monster truck. Nothing special...it was a FLM Maxx with a novak BL motor/ESC combo. Everything that I had built prior to that came from a kit and was pretty much easy to assemble. However, that FLM Maxx had some parts that required a little grinding/polishing to make eveything fit just right...and the drive train had to be strengthened to handle BL power. At that time, I was using 32P gears and had a RR steel sur with the stock junk traxxas pinion. That thing was eating those traxxas pinions left and right until I figured out the problem (steel and aluminum don't mesh well!). So I ordered a couple steel RR pinions online...and in the meantime I figured I'd drive up to a LHS that was about 35min away and buy a few more RR steel pinions so I'd be able to run my new BL monster truck over the weekend. Not only that, I was psyched to take my just finished Maxx up to this hobby shop that advertised a track, large inventory (to include RR gears), friendly service, etc. When I showed up with my truck and asked the owner if he had any RR 32p steel pinions, he indicated that they no longer carried them. BTW...he didn't know or understand what 32p meant. Well I hated to waste a trip...so I tried to strike up a conversation and see if there was anything else I needed or was interested in buying. Apparently this irritated the blob (and owner) behind the counter because he looked at me and said "whut do ya do with that pritty alum truck? Drive it around the living room?" Not the smartest thing to say to an adult customer that comes strolling into your establishment with a $2500 truck under his arm. With any amount of luck, that customer just might spend some serious loot if you are nice to him. I mean what a dumb ass...he had tons of 1/5 scale stuff (FG and MCD) and I was trying to talk to him about the pros/cons of those RCs versus the nitros. I was genuinely interested in buying one and I had brought proof into his store that I could indeed afford to buy one of his FG/MCDs! Freaky thing is that another customer in the store looked at me and looked at the owner behind the counter and said "I don't think he's interested in your FGs anymore..." LOL. I have had numerous similar experiences so I just stay away from the LHS scene unless I am in pinch for connectors, CA glue, diff fluid, etc. LHS CS awlays seems to be the same...some blob that knows it all or some kid that doesn't care and certainly isn't trying to figure it out.

[Finnster]

lol

No, no good deals either. The guy says he needs money to pay the business loan, so can't afford to have a sale. He'll just take what doesn't sell home and put it up on ebay.

I asked him if he saw the prices on ebay, and they are pretty tight, not to mention all the fees for paypal and ebay. "Yeah"
As it is now, no good deals. We'll see as it gets closer to the closing date. There isn't really anything I need/want. There are no 40 series tires, all the maxx size are pin-type tires, and most of the shells are 1/10, crawler or Revo 2.5. Nothing to fit my savvy XL.

Maybe he's just being like circuit city and their liquidation sales. Everything is expensive at first, then drops the last few days. I'll see if I find anything, make a realistic offer to take it or leave it.