Whatever happened to....

I have just got back to US modelling after a long break but upon my return I can't seem to find half the shops I once shopped at, namely Express Station and Longs also Standard Hobby Supply is a shaddow of it's former self, what has happened in the few years I have been away. Is the hobby in decline or has online ordering hit some retailers badly. As I live in the UK mail order was really the only way to shop but now the www has made it so much easier for me.

Shaun

 

Just my point of view, but I don't see any decline. I suspect that as always, there's some turnover in shops. Some get taken over, some go out of business, and some just morf into a different business model.

Yes, on-line ordering is a great boon to those of us who live far away from anything resembling a local hobby shop.

Regards

Ed

 

Longs closed their Hobby section 2 years or so ago, maybe more. From what I understood new owner/manager did not want to keep the department open.

 

Most owners found it difficult to to maintain an adequate and up to date inventory. The slow sales and lack of positive cash flow handicapped most stores. Then along came inflation at the gas pump, translating into: Spendable cash on behalf of the would be buyer going for essentials...just to get to work. Sales dropped, staff was downsized and the owners got tired of sitting and dusting those non-moving items on their shelves.

Those smart enough to start a web page and move to mail order or e-mail order found a way to sell those ever present items on their shelves. Then shipping costs again I refer to the gas pump, blitzed and they found themselves charging more for handling and shipping then the actual price of the item ordered. Some, tried a flat rate if you purchased $50.00 or more and so on but without those healthy discounts.

It goes on as utilities and rent sky rocketed along with salaries demanded by employees.

Suddenly, it wasn't fun anymore and any excuse seemed plausible and the doors were shut for the last time. Others have opened but they are struggling and once the fun dies down and the dream withers...mark my word...the doors for them will close.

As one hobby shop owner expressed to me, "My investors provided the financial backing to open the store and purchase inventory however, by the time we opened our doors we had last years stock" continuing, "That didn't sell as quickly as we had hoped". He went on to say, and we were unable to purchase this years new items, putting us a year behind". Unable to compete and maintain a positive cash flow... he closed his doors.

However, it's not all that bleak. There are hobby shops that are assertive and treat it as a business. The are progressive, internet wise, advertising wise, providing an active mail order department and always looking for ways to move product. Ie. Sales, discounts on dollar amount ordered, accumulative dollar points toward future purchases and etc. I might add: Wise purchasing in bulk at bulk prices is another way to increase the overall profit margin.

I'm sure I missed a point or two but that about summarizes it.

Have fun.

 

Well the state of the economy is great for me at the moment as I'm getting over $2 to the £ which translates as goods are 25% cheaper than this time last year for me. Here in the UK a non DCC equiped loco starts around $160 and thats for something that doesn't even compare to a Kato. Even with these prices many companies are staying in business and most of them are also using the web to grab extra trade, I know of only a few purely web based retailers. So maybe there is some future for retail outlets, plus the US is a heck of a lot bigger than the market over here with a lot more competition.

Shaun

 

Shame as I always had superb service from them and the other 2 come to think of it. Actualy I have had great service from all the US and Canadian retailers something that is lacking here.

Shaun

 

BarstowRick pretty much summed up the Washington, DC area shops. I have seen a decline in shops in Northern VA. There was another thread on this board last week discussing this issue as well. We recently lost "Granddad's" Hobby Shop, TSG in Warrenton just went out of business. Arlington Hobby that had been around since dirt closed up a couple of years ago. The few shops remaining seem to be diversifying w/ other goods and carrying less "specialty" scale details, goodies, and stock.

Rider's in Sterling for example took out the whole back wall where they had racks of scratch-bulding bar stock, rods, channels, wood stock, etc. and replaced it with a satellite Post Office mail handling counter. They have also gotten into the Boy Scout, Cub Scout, and Girl Scout clothing business. They have stopped stocking model RR paints and most just carry Testors/Model Master stuff. Piper's Hobby has gone to mostly RC and Military Diarama stuff and cut WAY back on model RR stuff. They also stopped carrying Floquil and Scale Coat railroad paints.

I now live in capital of the free world and there are no more hobby shops that carry and stock a decent supply of scale model goods. Several of the proprietors to the stores mentioned above have cited internet sales and lack of traffic for model RR stock as the culprit. My biggest resource now is both the internet and going to large shows like the Great Scale Model Train Show in Baltimore. I used to go to that once/year. I am going in October to the show, and surely back again in Feb. Mostly now because that show is my best hobby shop in the area that is only open 4 times a year and on weekends.

 

Even though we're a small island our train shows are very much alive too, they're also as you said great place to get hold of bits. I have recently retired, relocated and finally settled down, but prior to all these events I would often attend train shows and some of the smaller retailers and manufacturers were great you could order stuff and collect at the shows. I spent the 17 years prior to my retirement serving in the RAF so as I was usually in some far flung place around the world mail order was the best way for me to shop. It was thanks to the RAF that I got in to US modelling, I was stationed in Saudi Arabia and came across MR on the magazine stand and I couldn't believe the price of the models so the 3 retailers I mentioned above got a heck of alot of custom from me. We have some good US outline retailers here but they tend to be a bit pricey I guess due to import tax , shipping and shop overheads but 1 guy has always been reasonable but he has never had a retail premise only shows and mail order.

Shaun

 

I don't see any decline in the hobby.

I recently read one of my old Model Railroader mags from 1991. It was heartbreaking. There must of been 15 train shows in my area in the period from September to November plus 10 others that were driveable to.