Whats is killing the local hobby stores?

[BobPhx]

I don't bother to order anything from LHS. I would like to, but I have had experiences similar to Al's. I do go there if I think they will have what I need. I like to support local business if possible, but not if it's going to be a big hassle.

Our LHS was headed down the crapper for about the past 18 months. Rude employees with zero knowledge, poor stocking, etc. I figured it was a matter of time. I know the owner casually and never saw him in there or at the field.

3 months ago I went in and the two (new) employees immediately greeted me, assured me they'd be with me in a moment, big change from before. Also, store layout was rearranged for better shopping. Went in a couple of weeks later and same thing. Next time in the owner was there, and I told him I really liked how things were going. He said he had lost focus for a bit but was back in the game now. Hope he stays there.

Bob

[racefreak2002]

	Quote: Originally Posted by nate540
	Well after almost 20 years the hobby shop i helped run closed its doors. Just a lack of buisiness. We were big into cars and racing had indoor and outdoor tracks. we went from on point of having 60-70 racers a week to having 8-15 not good. So unfortunatly thats it.

That is what happens when you put all your eggs in one basket. car guys are alot ike dirt track racing. one day they all dissapear. where did they go? HOME!!!!!!!!! sounds like the store owner never likes airplanes. just my 2 cents worth.

[tim v]

Wow! I owned a hobby shop but closed it last year. the local guys just would not support the store. I sold kits, radios and engines for the same price as Tower Hobbies, Horizon Hobby, and other distributors that I had to compete against. I am a flyer and my son flys helis and was a big car guy. Guys would come to the field and track and tell new guys to go to those distributors directly even if I sold at the same price. They said they did not have to pay sales tax online. Most of the big items have very little markup, sometimes less than 10%. I had to sell about $20,000 a month just to break even.
The business had a 3% to 5% profit margin. So I had $300,000 in sales and after everything was paid I made a profit of $9,000.00. I had a salary of $25,000 a year. All I ever heard is was" can you give me a discount". I worked everyday even when I was closed. Less face it the average rc guy is CHEAP!!!!!!! They want to play in the hobby but want everything given to them. I was so sick of it I just closed the doors oneday and did not tell anyone it was going to happen. I knew If I told everyone they would just try to see If I would give it to them for next to nothing. Now all I here at the field is "I wish the hobby shop was still open". I have seen 5 shops close in twenty years in Savannah, Ga. I held on for 5 1/2 years and finally just could not take it any longer.

The upside is I made a lot of good friends . I hope this answers WHY? I still have my inventory in storage.

[xtraflyr]

	Quote: Originally Posted by nate540
	Well after almost 20 years the hobby shop i helped run closed its doors. Just a lack of buisiness. We were big into cars and racing had indoor and outdoor tracks. we went from on point of having 60-70 racers a week to having 8-15 not good. So unfortunatly thats it.

Your in Pa--thats not Trains and Lanes that closed it's doors ?

[racefreak2002]

Tim V is EXACTLY correct. I had a hot rod/speed shop just like that. catered to mostly weekender dirt trackers. let me say I have seen a dirt tracker take the engine out of his work truck on friday night, put it in his racecar, get up saturday morning, go racing saturday night, LOOSE the race,get up sunday morning , put the engine back in his work truck for work on monday morning. now top that. TRUE STORY all hobbies are somewhat like this. just some are alot more extreme than others. our hobby has a very narrow pathway. how often do you see golfing equipment at hobbytown or in a local hobby store. this is a very tough buisness. BUISNESS is hard to conquer.the local hobby shop owner has his work cut out no doubt!!!!!!!

[Craven]

	Quote: Originally Posted by tim v
	Wow! I owned a hobby shop but closed it last year. the local guys just would not support the store. I sold kits, radios and engines for the same price as Tower Hobbies, Horizon Hobby, and other distributors that I had to compete against. I am a flyer and my son flys helis and was a big car guy. Guys would come to the field and track and tell new guys to go to those distributors directly even if I sold at the same price. They said they did not have to pay sales tax online. Most of the big items have very little markup, sometimes less than 10%. I had to sell about $20,000 a month just to break even. The business had a 3% to 5% profit margin. So I had $300,000 in sales and after everything was paid I made a profit of $9,000.00. I had a salary of $25,000 a year. All I ever heard is was" can you give me a discount". I worked everyday even when I was closed. Less face it the average rc guy is CHEAP!!!!!!! They want to play in the hobby but want everything given to them. I was so sick of it I just closed the doors oneday and did not tell anyone it was going to happen. I knew If I told everyone they would just try to see If I would give it to them for next to nothing. Now all I here at the field is "I wish the hobby shop was still open". I have seen 5 shops close in twenty years in Savannah, Ga. I held on for 5 1/2 years and finally just could not take it any longer. The upside is I made a lot of good friends . I hope this answers WHY? I still have my inventory in storage.

Exactly!

RCer's (90% of them) are the cheapest out there...hands down. Sad but, true. Why? I have no idea why. Sorry you had to close. I would have loved to support your shop.

[reyn3545]

When I first got started, I bought several small electric and glow trainers at the local hobby store. (Hobby Town USA). They generally had what I needed during the first several planes. As I moved to larger planes, more adavnced setups, etc.., they seemed to have less of what I wanted. Luckily, Atlantahobby.com is only a few miles from my home also, so I can always get quality stuff for the electric planes.

When it comes to planes and parts for the big gassers, there's really nowhere but the internet. It's a shame in this business that the distributors (Tower, Horizon, etc..) have slit the throats of their customers (the hobby stores) and started selling direct to the public. As Tim V mentioned, people just feel like they're "buying direct" and getting an overall better deal, skipping the tax burden, etc..

In the end, The distributors are putting their partners out of business. They're also buying up the larger brands... Hanger 9, JR, Great Planes, Lanier, Goldberg, the list goes on... are owned either partially or wholely by the very people who distribute their equipment. It's all in the name of free market economy.

[floridaflyer]

	Quote: Originally Posted by Craven
	Exactly! RCer's (90% of them) are the cheapest out there...hands down. Sad but, true. Why? I have no idea why. Sorry you had to close. I would have loved to support your shop.

Why am I cheap? Because a lot of rc stuff is way overpriced. Damn right I am going to shop the internet for better prices. Its not the LHS fault. I helped a guy when he started a new LHS. Other posts where right, whats my discount, why dont you have this or that in stock, can you fix this "cheap", and so on and so forth.
Why is a 30% ARF $700? I know for a fact what they cost the distributors who get there planes from China. The guy I helped with the LHS also brought over a line of giant scale arf's that were better built and flew as well or better than all of the competitors planes. They were half the price of the competition, but nobody bought them because they were new.
I just started getting into 1/8th scale buggies. My $249 buggy and $49 .27 engine runs with the competitors $650 "roller". Do you think a .21 rc car engine is worth $500 dollars. I dont think so, but they are out there.
I know, some of you will say you have to pay to play. Well I saw the same thing in Kart Racing. I started racing karts in 1967. We use to have 20 to 25 in my class "every" Saturday Night. The same track still exists. They get maybe 3 or 4 now. Why? Because back then equipment was affordable to all most everybody. Guys would haul there karts in their car trunks.
Now! You see freakin Indy Car size transporters hauling karts. It got so expensive only the rich bastards with their snotty no talent kids could afford to run up front.
Sorry to rant, but the prices of everything are way out of hand. And people wonder why the economy is the way it is. Its the slow decline and eventual demise of the Western Civilization.
Thank you and good night.

[racefreak2002]

Really good posts guys. the only way to truly verify what is going on is for actual experiences to show up on threads. we all want succesfull businesses to exist. the greedy warehouser are now owned by manufacturers. honestly I cant even believe that tower is still alive. GIANT model avaition is not average glow modelers. gassers are really the next level. very specialazed detail products. there is no CHEAP way to go GIANT planes. sooner or later CHINA will figure how to totally capitalize off of this era.

[jaguar bone]

	Quote: Originally Posted by racefreak2002
	there is no CHEAP way to go GIANT planes. sooner or later CHINA will figure how to totally capitalize off of this era.

They already have - U pick any scheme and it will be on your door in < 2.5 mos. Unbox, bind and fly is coming.
A Bitter-Sweet goodness.

[racefreak2002]

	Quote: Originally Posted by jaguar bone
	They already have - U pick any scheme and it will be on your door in < 2.5 mos. Unbox, bind and fly is coming. A Bitter-Sweet goodness.

well said !!!!!!!!! MY flying buddies and I were discussing the bind and fly GASSERS is next. just

pick your product, it will show up via brown clown (ups) add fuel , go fly. WOW !!!!!!!!

[MikeC3D]

If that happens, then we are all in trouble, there are already too many unexperienced/ irresponsable people out there making stupid decisions and taking dumb chances because they have extra money and they think they are cool to have a big gas plane, dont belong to a club or AMA and will try to fly it at the beach or a side road(or airports with skydivers) and inevitably cause major problems for us all.

[jaguar bone]

	Quote: Originally Posted by MikeC3D
	If that happens, then we are all in trouble, there are already too many unexperienced/ irresponsable people out there making stupid decisions and taking dumb chances because they have extra money and they think they are cool to have a big gas plane, dont belong to a club or AMA and will try to fly it at the beach or a side road(or airports with skydivers) and inevitably cause major problems for us all.

Spot on MikeC3D
With a little simulator time and cahunas the size of coconuts, this hobby could be in for some truly bad press.
So, what can possibly be done to protect our hobby given the mega egos and unlimited credit card access jerks capable of grabbin' the sticks?
Most any REGULATION sucks - but...

[racefreak2002]

Hummm. mabey a government sponsored promram is in the near future. Mikec3d may be on the right track. GASSERS are not nearly, electric foamy stuff. let all

unexperienced credit card swipers learn the hard way. mabey we'll get thier respect sooner than

later. as long as no one gets hurt .

[enephel]

I support my LHS. I go there weekly usually. It was started by an avid flyer who wanted to supply a good selection of RC stuff to him and his buddies. They have a good stock and I don't have to wait for it to arrive in a few days. And good prices. Need a 4" spinner? 15 miles. Blue Ultracote? 15 miles. They can't have everything every time. Some times we just go there only to browse and still spend $50. On a Saturday they are packed because some guys car pool and drive long distances. I don't buy everything there but I give it a try. I sure would miss that store.
I have a hardware store 1/4 mile away and I always go there first to see if they have it before driving half an hour to the collossal mecca hardware store. I sure would miss that store also.
I was getting a gallon of milk out of a cooler one day and an old feller went out of his way to come over and tell me I could save $.30. All I had to do was leave and drive three miles to another grocer. I asked him if he was serious.