Spare Parts
For non-modeling topics and those without a home elsewhere.
Why Brick and Mortar Shops are Failing
retiredyank
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Posted: Thursday, June 14, 2012 - 10:25 AM UTC
My LHS just got in a new shipment of armor kits. This is rare, as there are no armor museums or bases near by. The Zvezda T-90 and Tamiya's Challenger II desertized were included. The T-90 is selling for a whopping $58 and the Challenger for $48! This just became my supplies only store.
mother
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Posted: Thursday, June 14, 2012 - 10:51 AM UTC
Years ago kits were cheaper and yes they became costly, while the household income became weaker. I’m going to leave it at that!

Years ago there was no internet, maybe a single computer in the house. Then forums started up, like Armorama, ARC and Zone 5 just name a few. Today there are hundreds of modeling forums on and just about weekly you will find someone or that something your looking for cheap or at a great price. What does that have to do with brick and mortar shops, will I along with many became money conscious.

Example…I wanted a few 1/48th F/A-18’s so going to the hobby shop here I saw which ones I wanted till I saw the sticker….$92 each, yep that’s right $92 each.

Is it the hobby stores fault for the/their pricing, not sure BUT if I can get them of the buy/sell fourms cheaper then yes I’m buying.

Last month a fellow modeler was selling his large stash of 18’s, so I bought three at $40 each and shipping was $14 more.

Just my two cents.

Happy Modeling,
Joe
CMOT
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Posted: Thursday, June 14, 2012 - 11:36 AM UTC
Matt when your supplies only model shop closes and you cant get the paint or glue you want for a week or more if at all due to import regulations who are you going to blame? I make a point over here to support the local stores as much as I can and usually at the very least keep it in the UK for one very simple reason, when I want paint, glue or whatever it is quick and easy to get. One other thing that should be considered is that when the Brick and mortar shops have all gone we will complain and I suspect that it will also mean the price internet stores can charge will increase.

Now does that mean I pay more for the models I buy? Yes it does but factor in postage costs and customs charges and there is no saving in your internet purchase just a perceived saving as the model itself was cheaper.
SgtRam
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#197
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Posted: Thursday, June 14, 2012 - 11:57 AM UTC
Matt

I have to agree with Darren, even here in North America, we have to continue to support the LHS, or you won't have that place to run down to get a quick bottle of paint or glue. Here in Canada we are losing hobby stores fast. People think like you do, buy online, it is cheaper. Well once all the hobby stores are gone, what do you think the online vendors are going to do? Yeap jack up the prices! The LHS tends to be a bit more expensive, but they have to pay for the bricks and mortar, and YOUR convenience! So while I do buy online when I see a real good deal, I tend to share my hobby money with the LHS too, buying a kit here and there, buy a magazine, maybe a tool or two, then I know when I need that bottle of paint, he will be there.

Kevin
retiredyank
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Posted: Thursday, June 14, 2012 - 12:11 PM UTC
They stock a full supply of hobby paint(tamiya, floquil, mm enamel and acrylic) and scratchbuilding materials to support the model railroad venue.
mmeier
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Posted: Thursday, June 14, 2012 - 12:15 PM UTC
The problem with the approach is:

In two of the three shops around here (in the middle of the Ruhrgebiet) I have the choise between

Nazi tanks from Tamiya
Nazi tanks from Dragon
Nazi paper tanks from Trumpeter

and the occasional overpriced 25+ year old Tamiya kit of "modern" stuff. In shop three I get the occasional modern kit (say 10 percent of the kits).

I don't like Nazi tanks (well except Panthers - it's a family thing) so 9 out of 10 kits I simply have to order online. At one point or another I stop visiting the store, check my Tamiya paints on a regular base and buy the rest at Toys R Us or the Wargamers shop
SgtRam
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#197
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Posted: Thursday, June 14, 2012 - 12:19 PM UTC
Ever thought of letting the owner know what you are interested in? Or asking if they can order stuff in? That is what has happened here at one of our store, it caused the owner to look at what would be in demand and order it in and now he is selling alot more, and has been able to price his stuff more reasonable. Sometimes it just takes a few customers to say something.
retiredyank
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Posted: Thursday, June 14, 2012 - 12:32 PM UTC
My hobby shop does not order upon customer request. They have a warehouse full of everything, but plastic kits. I've been badgering them about restocking the mm enamels. In five years, they have only placed one order for static kits. At a 65% price difference, I doubt they can match internet offers. In Jacksonville, FL, there are only two hobby stores left and they are owned by the same person.
SgtRam
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#197
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Posted: Thursday, June 14, 2012 - 12:53 PM UTC
Well if there is a market for plastics, open your own store, that is the perfect opportunity.

mother
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Posted: Thursday, June 14, 2012 - 01:18 PM UTC

Quoted Text

Well if there is a market for plastics, open your own store, that is the perfect opportunity.



Easier said than done, you have no idea what it takes or costs to start up a hobby shop. First there’s the building and insurances. The hardest part is catering to all the modelers venues. Even this doesn’t scratch the surface.

Talk about paint, MM’s as Matt mentioned, getting a rack is thousands of dollars. Tamiyas line is around $1500 AND you have to buy the rack. Evergreen is up there as well. My brand of glue, also a grand or more to carry the line. That’s another reason it’s hard for the small shops.

I know this first hand as a good friend bought a building and opened the door to a hobby shop last week Friday. I spent a month helping Justen build, paint, stock and everything else that went into the shop.

I will support him as much as I can, get my paint and some kits BUT at the same time I’ll buy where ever I can get the next cheap kit at half or more off. Again it comes down to money we have at hand and if I’m the only one who thinks this then…its total BS, because all the sell/buy forums would be dead.

Happy Modeling,
Joe

Justen when you can chime in on this.
Rockfall
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Posted: Thursday, June 14, 2012 - 01:44 PM UTC
My LHS is mainly a RC shop and they seem to be doing a brisk business. They do have a fair selection of plastic kits but its definitely a side show to the RC stuff. The kits are more expensive then online so I don't buy too many from there and I don't feel that bad about it.

I buy alot of my supplies there however. Yeah it would suck if it disappeared but the RC crowd seems to be keeping the place going so it works out.

Jeff
SgtRam
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Posted: Thursday, June 14, 2012 - 01:49 PM UTC

Quoted Text


Easier said than done, you have no idea what it takes or costs to start up a hobby shop. First there’s the building and insurances. The hardest part is catering to all the modelers venues. Even this doesn’t scratch the surface.



You might be surprised what I know, I have run a hobby store in my younger days, and I have written a business plan to start one. So yes, I know what it takes.

But thanks for your generalization.

MSGsummit
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Posted: Thursday, June 14, 2012 - 02:45 PM UTC
Well guys I tell ya.........I really miss the days of the LHS. Here in Clarksville Tn, my only choice is a Hobby Lobby. The next closest is on the other side of Nashville...1 hour drive! I have always wanted to open a model store, but the store owners I have met just cannot compete against the internet (Damn that Al Gore! HA!)and that has scared me off from starting one. Other store owners I have met really are forced to cater to the RC crowed cause that is where they make the money.....models not so much. I f a model shop were to open here, I would definitely support it as much as possible even if the only thing I bought was a bottle of glue. I don't know about the rest of you, but I don't think I have ever walked out of a LHS without something....paint brush, evergreen strip, magazine. Sadly though, models are more expensive these days and my money doesn't stretch as far as it used too and I am forced to look to the internet for kits on most occasions. Damn that Al Gore for his invention!
(Got to blame someone right?)
CMOT
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Posted: Thursday, June 14, 2012 - 02:59 PM UTC
Joe I understand what you are saying and I am forced to agree on some things. Most of my purchases are from two stores in Salisbury and one in Halifax, the one in Halifax is a pure model shop and must be doing something right as they are moving into a larger store, the stores in Salisbury are supported by other lines. I do purchase items from the net as sometimes it is the only way to get them, What i am trying to get across is that if you point blank don't support a store when you can it will cost you when its gone.

Any way Joe talking of kits when are you going to do some more scratchwork as I have not seen any for a while over this side of the network.
mother
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Posted: Thursday, June 14, 2012 - 04:43 PM UTC
I totally agree with you Darren, as I said I will shop at Section 8 Hobbies for my models, paints and such. Justen does give others and myself breaks. I plan on paying full price on a lot of items from there just as I would anywhere else. I’d like to see his place thrive and survive. We had a hobby shop here in Buffalo that catered to modeler once, like others who said RC is the norm is which direction this hobby shop went. Each time you go in the shelves were getting smaller and kits were scarce and what was there were three times the amount. Again is it the hobby shops at fault for the high prices chasing away customers…no, again it’s the economy that does. And so the customer will shop online for a better deal.


Quoted Text

Any way Joe talking of kits when are you going to do some more scratchwork as I have not seen any for a while over this side of the network.



I have Darren, but been to busy posting…if that makes since. The last 6 weeks I’ve been working on the house. I had a total makeover, new roof, siding, gutters, windows and a new porch. We also bought the lot next to use which was landscaped, fenced in and new grass laid in. My goal (turning 50) was to have this finished so that I never ever have to touch, paint ever again.

So I don’t get to modeling around 7pm, work a few hours. So that’s why I’m not posting. I will soon, real soon as I’m just finishing up the last bits of house work, then it’s back to full time modeling.

I have finished my last project though, the Husky. I plan on posting finished photos this weekend.

Happy Modeling,
Joe
thehannaman
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Posted: Thursday, June 14, 2012 - 05:21 PM UTC
As the owner of Section 8 Hobbies here in Buffalo, (not speaking for other retailers) I really wish that I could sell many of my items cheaper than I have to put them on the shelf for. You have to understand that your LHS is on the very end of the mark-up train after the manufacturers, logistic companies, ports, customs brokers, truck lines, distributors et al get they're taste. Our prices our basically fixed with nowhere near the profit margin that you may see in something like, say, the retail clothing industry.

I try to compromise on price and variety using special orders and price-breaks for pre-payment. But trust me, my heart sinks everytime I see a Chinese firm selling to the retail market here in the US for half what I can buy it for from my distributor (if it were in stock. Product possibly withheld? Conspiracy theories abound.) It's called predatory pricing and so many industries in this country have fallen prey.

Vote with your wallet folks. But make sure you really waant that "candidate" to win.
retiredyank
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Posted: Thursday, June 14, 2012 - 05:42 PM UTC
The startup cost here is very high. A lease would run around $1500 per month(that's without any cost of utilities). I've looked in to starting my own online shop. Dragon requires at least another $1500 for your initial purchase. I assume that other manufacturers require similar amounts. I help out my lhs by shopping for paints and scratch building products.
CMOT
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Posted: Thursday, June 14, 2012 - 06:10 PM UTC
Matt you have answered your own question as to why the kits are the price they are.
retiredyank
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Posted: Thursday, June 14, 2012 - 07:29 PM UTC
There never was any question as to the "why". I think you assumed that there was. But, at an extremely high markup and general lack of selection brick and mortar shops are doomed to failure(at least as static models go).
thehannaman
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Posted: Friday, June 15, 2012 - 02:29 AM UTC

Quoted Text

But, at an extremely high markup



Not to be contrary, but I assure you that there is no "extremely high mark-up." Assuming a retailer gets full MSRP, they are generally getting a 35 to 40% mark-up. Higher ticket items get marked down to be competitive and usually only net 15 to 20%. This is pretty standard.
viper29_ca
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Posted: Friday, June 15, 2012 - 03:17 AM UTC
Like Justen, I am also one of these owners of the LHS, and I can tell you right now that there is not "huge" markup from supplier to hobby shop.

When you have companies like Dragon USA (owned by Dragon) selling retail for about the same price as what my cost from a supplier.

Easy solution some say, buy direct from Dragon USA, right?....well couple of facts....opening order is $1500-$2000, and you have to maintain $1000/month (or something like that) or they will cut you off...and oh btw....the price still isn't that great compared to what they sell the same kit for on their website, so you still ended up being $10-$20 more end retail vs what they sell it for on their website. Not to mention that Dragon's prices seem to be on the rise again. I mean seriously...the prices on some of these Cyber Hobby kits are just crazy.

None of us LHS owners are getting rich, I can tell you that...most of us do it because we love what we do. Sure we make a little money, but retiring to that secluded beach in the Caribbean with cabana girls bringing you non-stop drinks, is only just a far flung dream.

Now for myself, I am in sort of a unique situation. I am in Eastern Canada, and the only hobby shop around. Next closest one is a 4hr drive south, or a 6hr drive north. Also along with the physical shop, I have a web presence as well. Along with that, I am the only CDN dealer for AK Interactive, and the only Vallejo dealer east of Ottawa (and among only a handful in all of Canada).

Along with that, I know that there is no possible way to have every kit that comes out in stock (one would go out of business very quickly doing that), so what I do is a weekly newsletter to my customers that show what new kits, accessories, books, etc, etc, have come out this week, along with the prices. My customers know that if they want a particular item that I wouldn't normally carry, they can always ask to have it ordered in, and I am happy to oblige.

Any hobby shop that won't do special orders for their customers....well IMO they shouldn't be in business, I would say that 1/4 of my business is probably special order stuff.

Lots of items, when I factor in the end retail price, if I don't think I have a customer that will pay that....I don't bother ordering it in to just sit on the shelf and collect dust. If it happens that a customer does want it, it is only a mouse click away to order it, couple of weeks later it is here.

Obviously I going to tell you all to support your LHS, but as you can see I am a bit biased since I am the owner of one. But seriously...what are you going to do once we are gone, and you can't run down to pick up a bottle of paint or glue? Most of that stuff can't be shipped via air, so if you are left with only the webstores selling the product....you aren't going to be able to get it because they either can't ship it, or at best, you are going to be waiting a month or more to have it shipped via surface shipping.

Guess that is another feather in the cap for Vallejo paints....no restrictions on shipping them...but that is another topic for discussion at another time!
retiredyank
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Posted: Friday, June 15, 2012 - 05:49 AM UTC
I can purchase the T-90 online for $28. At the hobby store, it retails for $58. OK. So that is only a 105% markup.
MSGsummit
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Posted: Friday, June 15, 2012 - 06:14 AM UTC
Okay Matt.....you've heard from LHS owners.....you made your point.....buy from where ever you get the best deal....drop this argument and go build a model buddy......jeesh!
CMOT
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ARMORAMA
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Posted: Friday, June 15, 2012 - 06:24 AM UTC
Ok here are some questions about that;
1. is that from somewhere within the USA?
2. If not what is postage going to cost you?
3. What is it going to cost you if customs get involved?
4. How long is it going to take you to actually get it?

In the UK when customs check an item it will cost you an extra 20% in VAT on both the product and the postage, and it will also cost you £8 more for the Royal mail to deliver it to your door.

This means a £28 model from the USA to here is going to cost on average about £52 by the time I get it and I have to wait 10 to 14 days to get it.

• £28 for the model
• £15 average for post
• £9 Vat

I know the tax man does not catch everything but in austere times they become better at not missing items.
retiredyank
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Posted: Friday, June 15, 2012 - 06:36 AM UTC
Cost of shipping is about $10 and that is from within the US.