Another problem of owning an LHS - you probably need to stock a lot of "eye candy" like multiples of buildings and rolling stock that no one will likely buy, just to look well stocked and draw people in. Throw in books, etc. because they do draw, but none of us buy. So few layouts get to scenery that these items have to be slow movers. Besides having to discount the stuff that will sell best, like locos, to compete with on line stores (that only sell the cream of the crop, like locos and new car releases) they have to figure in a lot of rent and merchandise cost for stuff that might sit there years before being sold at a bargain table. All that just to get us in the door, when we admit that most of what we do when we go in is to "dream" when they make the money on the plan and build part of the MR slogan. Whew. May as well sell turds direct, because its such a crappy business. Have a happy fourth.
Most of my retail experience was in a high-end bicycle shop. It was service that made us money. That service included maintenance/repair as well as fitting and outfitting. Put simply we could customize. You could go online and purchase that bicycle a bit cheaper but at a good shop you could get that bike fitted as you wanted and fitted to you. How this could be translated into model trains I don’t know.
TBone, I lived in your area about 15 years ago and I will share my experiences with you. These experiences may indicate why some of the shops are not surviving. There was a shop in Brentwood (can't remember its name) upstairs in an upscale shopping mall. When I went there, the proprietor was deeply involved in an animated argument about activities at the local club. I had to interrupt to ask a question about where something was located; I did not receive a pleasant response. While they had the product I requested I assumed that taking my money for it would be way too much of an inconvenience for the prop. so I left. I went into Aardvarcks a few times. Several times it appeared that I had the shop to myself. No sign of any staff in the shop. There was another shop out in a warehouse district that seemed to stock only sets. The problem I found? Service. From non-existent (Aardvarcks) to aggressively annoyed. At least on the internet I don't expect any interaction from people so am not surprised when I don't get. My vote for the best online shop: Feather River Trains, hands down!
Bruce,Unfortunately Aardvarks is one of the shops still around.They still charge full retail plus 5% and you cant breathe in their because of the cigarette smoke but atleast everything is weathered sadly to say it is weathered with nicotine.
After reading this thread for a while, I have to chip in. As a newbie, I need and get the advantage of experience from my LHS as well as from TB members. I would rather see and hear a potential purchase running in Tom's store (at a discount from 'retail') before I buy it than click on a picture. I would rather learn from someone who has been through the ups ands downs of creating a layout than from all the computerized layouts I see on every board (not that I don't learn something from them). I plan on buying everything needed for my layout from Tom and I don't care if it costs me a few more dollars because I gain more from his advice. That said, I don't know how he stays in business. He has one (possibly paid, probably not) employee; his shop might be a little bit bigger than my living room; he has a 'website' which basically gives his street address and hours of operation (he is open fewer than 60 hours/week). What I buy might pay for about a third of his utility bill, but he always thanks me profusely for my purchase (whether it's $15.00 or $300.00). I've never sen more than 2 other customers in his store. I only hope that he has another source of income. This is not meant as a plug for his store. In fact, I'd like to keep it to myself. But if you must know, PM me or e-mail me at theolmsted@aol.com. (It's between San Francisco and San Jose, closer to San Francisco.)
OK so Feather River Trains, Brooklynn Loco Works, Rio-Grand Hobbies, and TexnRails are all store fronts with on-line shops. So how much is over the counter(walk-in) as oppossed to mail order sales? They all are in well Est. populated areas, so I'll pick one that I know of their walk-ins@ the store and beinging generous are less than 10% they do shows model train shows every weekend bringing it to the people,(20% of sales @ shows)and the rest is mail order(70%) I would venture to say that they were all set up for primary internet service but oppted for store fronts since some manufactures won't sell to them. Would any of them survive as walk-in hobby shops with the 25% dicounts across the board? No shows or internet?
Than how does he sell Micro-trains cars is he an exception to their policy. Pete must do very well no walk ins or model train shows for him all mail order He does have great service since 1979
Coming out of a nightmare in the middle of the night (I dreamed Pat had decided not to run the drop bottom gons, need vacation need vacation :teeth I realized that there was one unexplored country for hobby shops. What's the one complaint that many have? It's too expensive! Can you say... Financing? What's a car dealership or furniture store without special financing deals? :teeth::teeth:
Great idea! A loco-loan. Let's see, a 5 year loan for a Challenger at, say 12% APR, would be ... Ouch! My wife just kicked me.
Yea I will, I speak with him quite often or maybe Joe D. can inform us as to that situation since he his the on-site spokesperson from MT?
And then there would be lease programs. Turn an engine in every year to get the newest model. Then the old ones would go to a used loco dealer.
Or the old standby: "Hey buddy, this little 2-8-0 was only driven to Church Rock Mine on Sundays..." John
"Hey buddy, this little 2-8-0 was only driven to Church Rock Mine on Sundays..." LOL...Thats hilarious
