I did not know where to post it so if it is the wrong forum: Iam sorry.


I have a question to all of you around the world.
Today it is been three weeks that I closed the door for the last time
from my modelshop.
Yes is not a nice thought, been doing it for 14 years.
But times changes
but there`s always something else to do. (Iam doing good)


But there was simply no or little money to make.
And believe me on this one...I made some good money up there.

With trumpetter/dragon ect pumping out 4/5/6 kits a mounth.
my customers could not buy 4/5/6 kits a mouth.....in the range of 50/60 dollar
In the end they bought one or bought them on shows..for a stealprice because some other vendor almost gave them away because he needed the money more then I did.
In this region off holland we "lost" 4 shops (that included R/C ) in the last two mouths.

My question. Is this going on worldwide?
Are the "modelshopsnumbers" going up or down?
sales going up or sales going down


For me the shoptime is over, it was great fun
But I think I just got out on time........

your thought please.

chris

Chris, I'm kinda sorry to hear that your closing up, but with the internet, now-a-days, and others cutting way too close to cost just to move thier product out the door, I'd imagine it makes your store a thing of the past. A sad thing to see happen!
Around these parts I have only 3 local sources for kits or supplies, a Hobby Town USA store, and two Hobby Lobby's. Hobby Lobby has the usual 40% off coupon for an item{probably makes it sold at cost} but they're not fully stocked in the way of regular kits or favorite paints for me, and HTusa is pricey with no sales except the "buy $100 of stuff and get a $5 off of a $20 purchase"{beats a poke in the eye I guess}.
When I was a kid we had two dedicated model shops in town as well as the local Ben Franklin that had kits, and the one model train store had kits too.....Wish I had all the 1/16 scale Aurora drag car kits now that I had back then!!! All of those shops closed up by the time I was in my late teens so I had to stop building models due to lack of anything local{no internet then- yah, I'm middle aged}.
Alot of folks are doing the web sales thing now, you get an order online, you purchase said item and have it shipped directly or you get it and then ship it to the customer...this way there's no overhead/inventory. A kind of cold way of doing things compared to the old days of seeing the customer face to face, but that's what alot of this web sales does. I hope that you find something else to do that makes you happy after this is said and done...the hardest thing in life is to figure out what makes you happy{and pays well enough} and pursue it.
My father in law is facing the very same thing...he has a TV sales store and it's hard to keep up with the big box stores, but he really makes his living fixing they're TVs when they break down. If it wasn't for that he probably would've closed up shop long ago. Every year now for the last 3 years it's been "maybe this will be the last year"......I think he's got a few more years in him yet{he's 63} - and I will miss the family discount{would never have gotten my 56" without it}.

For me it will be 3 yrs in Feb since I opened. Its been a long road, and it has taken this long for the shop to really stay in the black. I never really lost money...but you do have to take into account the stock that doesn't turn over every month.

For me, I not only have a physical shop, albeit, it is in the basement of my house. I pay the same mortgage no matter if the shop was here or not, so why not. Rent here for commercial space is nuts (last time I looked, downtown in a decent traffic area, and they were asking $2/sq ft. plus tax. So on a 1000sq ft space which really isn't alot, you are looking at $2000+tax before you ever open the door....so already starting out the month in the hole).

So a little extra insurance for the business, and the shop is here. I also have an online presence. And while I may not have the buying power of say a Hobby Lobby, or Michael's, I make that up with diversity, as well I can keep my prices a little lower because I don't have the overhead that a retail store front would have, nor do I have any employees to pay, as I do it all myself.

It helps that I live in an area of Canada (New Brunswick), where there are a total of 2 shops in our province. The other is about an hr away, and in a larger city, and for the most part, the rest of the province has to go through here, before they get there, so lots stop here first. Good for me. As well I do a few shows a year to get the name out there. As well I pride myself of giving the best customer service I can, which of course is the name of the game.

There are other shops in the next province, but they are a 4hr drive away in Halifax. Great if you are in town, but not something you do on a whim...drive 4hrs, just to go for a hobby run.

When you go north, the closest shop is Montreal, and a 9hr drive away. So I am in a unique situation in that there is very little local competition, plus my prices are competitive. Not going to make me a millionaire anytime soon, but I love it (and I get my own kits at cost! LOL!! But that could be a bonus....or a curse!!)

Being a relative new comer to this....my sales have increased every year so far, and I am on track to meet or break last year's sales no problem....so I really can't complain.

I find it hard to know where to spend some advertising $$, so I get the most bang for the buck.....it can be hard....and in the end, you can build it.....and they might not necessarily come.............

The biggest thing for me, is knowing what to bring in. I don't bring in many of the high $$ kits. If the kit is going to be in excess of $60-$70, you had better be getting something decent for your money. I do however do a weekly newsletter to my customers on my mailing list outlining all the new items that have come out from my suppliers, and that I can order the items in for anyone whom wants them. This means I can still offer alot of different items, but not have it sit on my shelf hoping it will sell.

The downside of this is that there are modellers that expect you to have every new kit put out, and that you should have it NOW, so that they can come and fondle the box......the may or may not buy it (usually the ones that want it now...actually won't), and I just can't/don't do it. Most people don't have a problem waiting a week or 2 until the next order comes in to get their kit.

In sunny Salisbury Wilts we are fairly lucky in that we now have 2 hobby shops. They work together in so much as they don't actively compete against each other, as one concentrates on plastic in all its forms and supporting materials and the other has a selection of plastic and a lot of railway items. in this way they both see a steady footfall through their doors. other than this I use Halifax Modellers World which is a close as you can get to the model shops of my youth. I also use JB Models in Austria for most AM items. I do not purchase from the likes of China as I don't like the idea of being hit with a huge import duty, and I want the shops to be there when I need them so I support them.

One trend here in germany is the "combi-shop" that comes in some variants:

a) Models are only an add-on part of the program

This has been true for a very long time. Models are sold in the "toy" department of generalist stores a lot. Not only ToysRUs/MyToys etc. but even shops maily sell hardware. It's a "we have the space, we take the money". This is often true in the smaller towns where plastic models alone won't float a shop. The "problem" is that these shops only have mainline stuff, no chance to get Resin/White Metal/After market parts or "exotic" Models (MiniArt = Excotic)

b) Models, trains and more

Many dedicated hobby shops also sell RC models, model trains and model racing cars. Or (like my FLMS) they offer "rent a model racetrack" as a secondary source of income. More recently Wargaming has also become part of the program. These shops offer (or can order) stuff outside the "big names" and some even stock Aftermarket products

c) Internet included

This is actually going down a bit. The smaller shops that started out as "brick and mortar" have learned that a good online-shop is a lot of effort and not easily doabel by the "owner, wife and 2 hired teens" shops. Partially to the long order times for models out of stock compared to say Roleplaying books.

OTOH some of the bigger online shops have actually added a "Brick and Mortar" outlet. Based on the idea "we have a storage/warehouse anyway"


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The "small shops" that still exist often operate out of the owners inherited building. I.e my FLMS is in the backyard of the owners house in a former carpenters shop. Similar my RPG dealer is operating out of the ground floor of his house having abandoned a rented city shop some years ago. The german tradition of "owning a house build for centuries" helps a lot

These are the shops that have a website even if they don't have an online shop since you are unlikely to find them "by accident"

Location is always a key factor, an old friend of mine has his train shop in his 2 1/2 car garage and has a 17" trailer he hooks up to a duelly truck to hit all the train shows. His garage is converted to a complete store front with cash register, shelves and all....add the 2 wide 100' driveway length and front parking and he's set. In his town you can combine home and business easily, but not all towns are that friendly about it! Anyone thinking of starting their own business at home would want to check your local ordances or zoning codes to see if it can easily be done.
I'd love to start up a hobby shop, but even in this town{2nd largest in the state}, and even with a severe lack of real hobby shops here, I'd be hard pressed to compete with the internet and/or hobby lobby coupons...then add the "instant gratification" people who insist you have what they want in stock...it'd be a hard row to hoe. Finding an empty storefront around here is as easy as tossing a stone...they're everywhere....affording it...that's another thing as has been said.
When my stepfather retired from the state police, they went looking for a business to start so they could work for themselves...it was narrowed down to 2 things, a car wash or a storage facility...they went the car wash route, but they bought into a franchise and the closest and most easily affordable one{taxes/$ per acre/franchise fees} was a 2 1/2 hr drive away...they took it. It cracks me up that they tell me they'll wash my car for free, anytime...it's only because they know I'm not going to drive 5hrs total for it!

Just as an extension of what I said above. I only have plastic models. No RC, no trains.

One, I don't have the room, but if I was to expand, it would be into the HO train market, I can at least order train parts....but again, people like to see it on the shelf.

If the internet sites are eating into the plastic model market, you can multiply that by about a factor of 10 for the RC market. And with the fact that most parts are proprietary to a specific kit, it is just a nightmare to keep up with and have the "right" items in stock. There is a big ship in PEI that has a huge inventory of RC (they actually have a shop in Edmonton and opening one in Ottawa as well), so they pretty much have the market cornered with their 3 stores as well as their huge online presence (Great Hobbies is the name) so I don't think getting into that market would be beneficial. RC shops actually out number the plastic shops around here about 2 or 3:1.....so why mess with it.

Yes it is an industry trend. Here in the USA we see two shops that close for each new one opening. Two steps backwards then one step forward doesn't promote rapid gain of ground or market share.

Many retailers lose sight of the geographic footprint it takes to remain viable in today's market. Watch Model Retailer Magazine for an upcoming article I wrote for them on this very topic.

If you expect to survive serving customers in your immediate area...you need a lot of customers in that area who purchase frequently from you. There is a reason the saying "The World is your Oyster" for it takes the world to provide the pearls necessary for financial success.

Hi Chris

Here in Milan when I was younger there was a lot of modeller shops
but, I could find kits to buy everywhere (also in the supermarkets)

Now we have just few shops and just in one of them you can find "professional"products (PE parts, resin, tools...)

Probably It depends on the fact that the boys are no more interested in kits. . the boys play video games and the average age of a modeller is now about 30-40 years and more

I dont' know if our hobby is going to disappear...
I think we have to change our habits and begin to consider buying our stuffs just on line

cheers

Chris, I hate to hear that economics are causing you to close your shop. Even though I'm not in the retail business I am a sole practitioner (lawyer) and I understand how you must feel. I know how I would feel if economics caused me to have to close my practice.

I can make a few observations about what I perceive the market environment for brick and mortar hobby stores to be here in the states. As was noted above, it seems like for every store that opens, at least two close. Things seem to be particularly grim for the "mom and pop" shops. The only stores that seem to be holding their own are franchise outlets like HobbyTown U.S.A.

It seems to me that internet vendors are essentially the death knell of brick and mortar hobby shops. When many, many people can sit at their computer and order their models, tools, supplies, etc., from all over the world, and often have then in hand within a few days, it is nearly impossible for shop owners to compete. I think a larger metropolitan area could support a few shops by virtue of a loyal clientele by offering something the internet sites cannot - face to face assistance by a knowledgeable staff who can give customers good advice about kits, tools, supplies, etc.. Personally, I love going to my local hobby shop and talking to the owner and employees about different kits, techniques, tools and other subjects.

I'm afraid that in the foreseeable future the brick and mortar hobby shop will be as endangered as some species of animals of which only a handful exist. That will be a loss to our hobby, since those shops also provide a place for us to talk to other modelers and make new friends. Even the best forum is no substitute for face to face interaction.

I truly regret your loss and wish you well in your future endeavours.

Bob

Can't say for the US but here in germany there are a few thing that keeps me going to a regular shop:

a) They order stuff for me from shops that say "credit card only"

Sounds silly but in germany (and most of the EC except GB) you don't need a credit card. The electronic variant of the old EuroCheck/Maestro debit system works well. So I don't own one. Getting i.e Accurate Armor stuff is almost impossible except through a trader (That charges a handling fee)

b) Small stuff like colors, glue etc

c) Diorama building stuff


Getting in the shop in turn often ends in looking through "what's availabel" and/or talking about upcoming releases. That in turn ends in a "can you order one?" and that (at least for me) is a "I will buy it" even without a formal contract.