Thanks all for your feedback. I live in Chicago now as opposed to the suburbs and the nearest hobby shop is 45 minutes away, and their prices are significantly higher than the mail order places. It seems I have it a lot better than some of you.
Case in point…I had cause to be in the locale of the closest hobby shop to me yesterday…and they had 2…count them TWO, TEE DUBYA OH pieces of HO flex track in the joint…didn’t know if there was anymore…or when they might get some more…the last bloody thing I went in there for…
Bart Salmons said:Well, to the good, at least they knew what it WAS....
.........didn't know if there was anymore.....or when they might get some more.........
My LHS doesnt stock any scratchbuilding supplies, and only a handful of scenery parts. He mostly has HO kits and stuff, and the occasional ‘estate collection’ that is sometimes worth picking through. Its sad, I remember as a kid going to hobby shops and being wowed by how much stuff they had.
Very near me is a LHS that specializes in trains. They are mostly into O and 3-rail, but they have a fair bit of LS stuff too. I bought my first stuff from them, but then discoved their prices were nearly double the on-line discounters. I have got some deals from them though. They picked up some LS inventory from a shop closing down and I was able to talk the owner into giving me internet pricing on a bunch of cars. They used to stock track, but they don’t anymore. I still stop there for small supplies, but haven’t dropped over $20 in his store in years.
It’s too bad that they can’t at least come close to discounter pricing. I wouldn’t mind paying 10-15% more for the convenience of being local, but 40-50% more, no way.
The trend follows retailing in general. The public wants low prices and is willing to sacrifice service and quality to get them. Big Box stores rule.
Sad but true.
Jon
While I would like a LHS to have a good selection of LS and scratcbuilding supplies, I can NOT justify the difference between $300 and $700 on the same locomotive. I’d be willing to pay a small premium for a local guy, but more than 2x the price on things is out of line.
I have a hobby town about 20 minutes away. They deal mostley with RC cars. They have some train stuff but mainly HO. They have a couple LGB sets and some LGB track but not even enough to make a loop. ABout a half hour away their is a train shop but he only deals with Lionel some HO and N scale. He said he can order anything in G scale. It does not pay I might as well order it online and get it at my house rather than having to drive back to the store. G sclae is very hard to find localy.
There were three hobby shops in my area that carried any LS. One closed last year, one is really a nursery and only has a few LGB sets which he puts out at Christmas time and the other one has a limited supply of LGB and Bachman equipment. He is a 1 1/2 hour drive away. His prices are usually manufacturer list with markups on hot selling items. I only stop in if I am in the area to see what he might have on sale. I buy most of my engines and cars on line from St Aubins and Trainworld. My building supplies are from area craft stores and lumber yards. There is also a small Hobby Town but he is strictley cars, planes and plastic models.
John
Local shop owners have an alternative method of competing with mailorder: Act like one.
EZ…
- After checking their wholesale price and setting a price for the customer, take the customer’s money .
- Order the item.
- Call the customer when it comes in or…
- If the distributor is willing, have the item sent directly to the customer.
or
If the item is in the display case, and the customer has a fever to not wait, sell it for the in-the-display case price. Now, the price for both choices is clear by comparison.
Me? If I was nuts enough to own a model train store, I’d have a set of catalogues at the ready - visible to the customer. The option to buy from the store or have me order it at a reduced price then is available.
Is this not what is being done by Ridge Road in their advertising in Garden RR??? The store price is X and the mailorder price is Y. Fair enough: A discount for delayed gratification. Simple and it works. Great service on two ends – their store and mailorder.
For shop owners who don’t know the protocol of being a “mail order” store, there are plenty of examples.
Wendell
I use LHS when I can. I’m luck in that the one I shop at does a big lay out at Christmas time for the local mall so he cares a good supply of LS stuff. I stop in right after Christmas all the time cus he is selling off the stuff he used at the display. He also has a guy that build LS buildings as a hobby and then sells them in his store so I have a good choise of building that are not like everyones. This works well for me cuz I can’t build from scrach.
The down side to the LHS is the same as the internet. You have to know your stuff, no your price and sometimes wait it out to get your price. I have done enought business with the LHS now that I can bargine with him. Sometimes he will even call me and let me know what is coming in (he buys used items and such) that way I can get it and he nver has to stock it saving him money and me the truble of haveing to hunt things down.
As for the break down, my first set came from a LHS. LGB starter set, paid 599.00 for it. The same thing sold on ebay for 250.00 a month later. I learned very fast to watch ebay and other places, as well as learned the prices. I guess that is the price you pay for not doing your home work first.
My LHS guy now knows I have learned and he also knows I will pay a far price so he can make money but I will not be, well you know what.
One problem I have with my LHS is that I order the item, it comes in, he has forgotten why it was ordered and puts it on display to be sold. 
Old timer’s disease, I guess.
Of course that works to my advantage as he is embarrassed and gives me a bigger discount. :lol:
You have to go in as soon as he calls you, Steve. Not 6 months later…
No prob, jb, I’m in there about once every two weeks, just to BS.
I never get called because I’m one of the ones he forgets who ordered what…:/… or Herb is there and can’t find shit back in the office.
I’m lucky in that my LHS that carries a lot of Largescale is only about 35 miles away. The owners are very friendly and also give very good deals on most stock. I buy 75% of my trainstuff there and the other 25% split between Trainworld & RRS.
I use my LHS for purchases when I can. Bought my K-27 at about a $100 over internet sale offerings, but believe it was justified. They have always been there for support and the owner was the man that got me started in G-scale in the first place. Since the onset of internet sale/pricing, the owner has made an effort to remain as competitive as he can and still make a living. I respect that and will continue to support him as I can. In fact his pricing on AMS stuff is nearly as good as St. Aubin.
John, Steve, Warren, You are sooo lucky to have a hobby shop that deals in trains! I moved 400 miles away and still deal with him! One hobby shop in Boise carried some G scale stuff but thought everything was made of gold. Guys would go in and try to deal on things that were 10 years old and never got anywhere. I haven’t been over that area for a while but I think he went out of business. No great loss! The only other place is Hobbytown and they are only good for wood and plastic. Have dealt with some good people over the internet.
I will be fortunate to be living about 40 mins drive time from Watts Train Shop in Zionsville IN. I have gotten almost 90% of my LS stuff from Dave and might still have a standing offer to work part time in the repair dept. The local shop in Kokomo is high priced and stuff just sits there collecting dust, he has the complete Wilson Bros. LGB Circus set with the Mogul and cars and its been there since I lived there in the 90’s. The second shop is awsome for HO scale and estates, but I can get the LS stuff at Watts cheaper, or mail order/fleabay. Ebay is the worlds largest 24/7/365 model train show. If you can deal with not being able to put your hands on it prior to purchase its awsome. I wont deal with anyone with less than a 98% feedback rating. I buy and sell on there, I may not make much profit when I sell there, but I clear out unused stuff and generate hobby funds. Cheers Mike
From the discussion posted many do not understand the dynamics associated with running a small business. The suggestion for the Hobby Shop owner to buy the item from the online wholesaler and passing it to the customer doesn’t explain how that will create income to the shop owner to pay his rent, electric bill, gas bill, business insurance, taxes, advertsing, attorney’s costs, home mortgage, college for his kids, etc…
Wal Mart isn’t putting Mom and Pop Stores on main street out of business. The customer who no longer goes to those mom and pop stores are putting them out of business. Mostly this is based on price, but often availability is an issue. Mom and Pop couldn’t carry the volume and variety.
Now change the name Wal-Mart to online LS vendors and Mom and Pops to local small LHS. Same results. We are responsible for the demise of local hobby shop (although some LHS are trying to sell at MSRP++++, which is stupid, and just hastens the demise)
There isn’t much profit in online sales either. San Val was expanded as an adjunct store to their Aircraft supply business. I would guess that if the RR side of San Val were hugely profitable they would have sold it instead of just shutting it down.
I happen to have the best of both worlds… multiple Hobbytown shops to buy immediate hobby supplies from and St Aubin which 8 miles from me.
Excuse me while I put my soapbox away
Tom, you are exactly right, which is why I patronize my LHS (and other local businesses) as frequently as possible.